ACER provides guidance to energy regulators on reporting barriers to non-fossil flexibility in electricity markets

Today, ACER publishes its Recommendation on how national regulatory authorities (NRAs) should report barriers to non-fossil flexibility. The document provides clear guidance and indicators to ensure consistent reporting across Member States and help NRAs and relevant entities evaluate these barriers as part of their flexibility needs assessments.

What is non-fossil flexibility? 

Non-fossil flexibility is the energy system’s ability to quickly adapt to changes in electricity supply and demand, without relying on fossil fuels or costly grid expansions. It does so by shifting electricity consumption or generation to times or locations where the system is less constrained.

Unlocking flexibility helps foster a more efficient electricity system, supports the integration of renewables and contributes to lowering consumer bills. 

Why an ACER Recommendation?

The EU Electricity Regulation requires Member States to carry out flexibility needs assessments to determine how much clean flexibility their electricity systems require, including identifying existing barriers. These national assessments are harmonised across the EU through a common methodology approved by ACER in July 2025. 

This ACER Recommendation complements this process, by: 

• Setting out clear guidance on which barriers, indicators and evaluation methods Member States may consider when preparing their assessments.
• Streamlining the assessment process, consolidating ACER’s prior work on barriers (2023 and 2025) across all types of non-fossil flexibility and incorporating stakeholder input (winter 2023-2024).
• Ensuring comparable reporting across countries, supporting ACER’s forthcoming EU-wide analysis of barriers to clean flexibility identified in national assessments.

What does ACER recommend? 

ACER recommends that NRAs, in coordination with relevant entities, consider the main barriers to non-fossil flexibility when drafting their national reports. These include:

• Lack of proper legal framework for households, new entrants or aggregators to participate in electricity markets and system operation services.
• Lack of enablers and incentives for flexibility, such as smart meters and flexible retail contracts that help consumers shift their consumption.
• Restrictive rules to provide balancing and congestion management services.
• Complex, lengthy and discriminatory administrative requirements, including inefficient grid connection processes.
• Limited regulatory incentives for system operators to invest in non-wire, innovative grid technologies. 

What are the next steps? 

Member States are expected to complete their flexibility needs assessments by July 2026. ACER will then have a year to analyse the findings and publish an EU-wide analysis to:

• estimate flexibility needs across the EU;
• evaluate existing barriers to clean flexibility, including those identified in national assessments; and
• provide recommendations on issues of cross-border relevance (including measures to remove barriers to non-fossil flexibility).