The EU Agency for the Cooperation of Energy Regulators (ACER) found a halving of gas contractual congestion in the EU transmission networks according to its 8th specialised report on the subject published today. Contractual congestion may signal a reduction of market efficiency. It happens when some network users were not able to obtain the capacity product of their choice and had to rely on congestion-mitigating measures (CMPs) to access the gas market.

• 8th Congestion Report in the EU Gas Markets and How it is Managed​
• Technical Annex to the Report 

​Has COVID-19 effected gas capacity auctions?

In 2020, the occurrences of auction premia, which arise when requests for capacity exceed the offer, dropped by 70% compared to 2019. COVID-related uncertainty as well as general demand and supply dynamics may affect whether auction premia will return in 2021 or remain scarce at around 0.6% of all auctions in scope of the analysis.

How much congestion?

In 2020, congestion has halved compared to previous years with 19 Interconnection Point (IP) exit and entry sides in 2020 compared to 37 exits and entries in 2019).  Half of the congestion is due to auction premia, which occurred in the auctions of yearly and quarterly capacity products. The other half is due to the lack of offer of any capacity products with a duration of one month or longer.

Has any progress been registered?

While the number of congested IP sides is low, local contractual congestion can be severe and reduce market efficiency. Around 85% of the congested IP sides in 2020 were also congested in the past.

What comes next?

Transmission System Operators ('TSOs') can apply a number of CMPs to ensure network users can access the network even when they could not obtain some capacity products in the primary capacity auctions. The Oversubscription mechanism remains the most applied CMP despite its decreased use in 2020; that decrease is partly compensated by an increased use of Firm Day-Ahead Use-It-Or-Lose-It and Surrender as CMP measures.

More than 60% of the congested IP sides are already covered by the FDA UIOLI mechanism, while for the other half the respective National Regulatory Authorities (NRAs) need to take action in line with the European Commission's rules on congestion.

Main recommendations

• ACER recommends the European Commission to revise the CMP Guidelines to enhance the effectiveness of the measures.
• ACER recommends ENTSOG and TSOs to continue improving data reliability to ensure the accuracy of information available at the ENTSOG Transparency Platform.

ACER's call on researchers

The Congestion Report has a narrow scope of analysis, while a substantial amount of congestion data is available for deeper and broader analysis. The report has suggestions for further research and ACER calls on researchers to use the substantial amount of available data to study different aspects of congestion in EU gas markets.

​​​​​​The National Regulatory Authorities of the Core region asked the EU Agency for the Cooperation of Energy Regulators (ACER) to decide on the long-term capacity calculation methodology (LT CCM) for the region.

The Core region comprises 13 countries: Austria, Belgium, Czechia, Croatia, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

What are the benefits?

Long‐term cross-border capacity calculation promotes effective long‐term cross‐zonal trade. By calculating reliable capacities and making them available to market participants at an early stage, long-term capacity calculation allows for long‐term planning and provides hedging opportunities.

The long-term capacity calculation methodology for the Core region shall cover yearly and monthly capacity calculation processes, by applying the flow-based approach.

How exactly will this ACER Decision contribute to a more integrated European electricity market?

ACER's Decision will contribute to the effectiveness and integration of the Core electricity markets by establishing the common rules for calculating the long-term cross-zonal capacity at regional level.

​Next steps:

ACER will launch a public consultation for four weeks; expected dates are from 5 – 31 July 2021.

On 9 July, ACER will organise a workshop on this topic.​ 

ACER expects to reach its decision by 3rd November 2021.​

The EU Agency for the Cooperation of Energy Regulators (ACER) opens registration today for an online webinar on 24 June 2021 to present the high-level approach that ACER intends to follow for the definition of alternative bidding zone configurations to be considered in the bidding zone review process, according to the EU Regulation on the Internal Market for Electricity.

Register by 22 June and access the agenda.​ 

What are the bidding zones?

Bidding zones, as the largest geographical areas within which market participants are able to exchange energy without capacity allocation, represent a cornerstone of market-based electricity trading and should therefore be defined in a manner to ensure efficient congestion management and overall market efficiency. In particular, bidding zone borders shall be based on long-term, structural congestions in the transmission network and the configuration of bidding zones shall be designed in such a way as to maximise economic efficiency and to maximise cross-zonal trading opportunities, while maintaining security of supply.

What can you learn in this webinar?

This webinar will present ACER's high-level approach for the definition of alternative bidding zone configurations as well as how clustering algorithms can be applied on nodal simulation results to support the identification of alternative bidding zone configurations.

A public consultation on relevant aspects of this high-level approach is planned to be launched shortly after this webinar takes place. ​

ACER organises this online webinar to present and explain the content of its proposed non-binding Framework Guideline on sector-specific rules for cybersecurity asp​ects of cross-border electricity flows.

The event will take place on Thursday 27 May 2021, from 09.30 to 12.00.

Register by Tuesday 25 May and access the agenda.​

The importance of cybersecurity is increasing, given the growing technological​ development and a more digitally driven and interconnected energy system. The modern energy system is not limited by national borders. As a result, cyberattacks may have cross border effects.

The non-binding Framework Guideline is developed by ACER on request of the EU Commission. It shall set out clear and objective principles for the development of a binding Cybersecurity Network Code that will contribute to maintain the security of the electricity system across Europe. The ongoing public consultation is open until 29 June 2021.

ACER is inviting stakeholders to join the webinar to learn more about the content of its ​proposal​, as well as about the process and timeline for the adoption of the new Network Code.

If necessary, participation may be restricted to one person per organisation.​

ACER and ENTSOG have published a solution on the Gas Network Codes Functionality (FUNC) platform, related to the issue "Dutch TSO requirement of message PRODOC".

​The platform allows relevant parties to notify implementation and operational issues related to the gas Network Codes.​ The web-based platform collects the issues and facilitate cooperation among stakeholders to find relevant solutions.

In February 2020, the European Association for the Streamlining of Energy Exchange – gas (EASEE-gas)​ reported that the Dutch TSO requirement of message PRODOC is unnecessary and contrary to Network Code on Gas Balancing of Transmission. PRODOC is a document containing information about the load forecast that a balancing responsible party sends to the system operator as part of the daily balance area management process for the day ahead.

When processing the issue, ACER and ENTSOG were made aware that the use of the PRODOC message is a requirement under Dutch national law. In the issue solution, ACER and ENTSOG conclude that the review of the Dutch Energy Act is pending, and it foresees to discontinue the PRODOC requirement in the future. Since the changes in the national law remain a precondition to solve this issue and since the preparatory work for the legislative changes are ready, ACER and ENTSOG propose that the issue be solved at the national level.

The solution paper and relevant documents are available on the FUNC platform. 

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The EU Agency for the Cooperation of Energy Regulators (ACER) and the Energy Community Secretariat (ECS) launched today a joint public consultation regarding gas capacity on a number of interconnection points (IPs) on the borders of the EU and the Energy Community and within the Energy Community.

The consultation focuses on capacity offering and use and aims at reaching a better understanding of market needs, approaches to avoiding network interruptions, and optimising capacity availability at gas interconnectors between the EU and the Energy Community and within the Energy Community. The results of the consultation will benefit market integration, competition and ultimately gas consumers.

ACER and the Energy Community Secretariat are particularly interested in hearing from users (actual and potential) of gas transport capacity and other services provided by transmission system operators (TSO) on the gas pipelines concerned.

By way of this consultation, both organisations seek to gain a firmer understanding of stakeholders' views on best practices in pursuit of enhancing connectivity, optimal use of existing capacity, market integration, and competition at the concerned IPs.

ACER and ECS consult the market to better understand market needs and to learn about possible approaches to avoid network interruptions and to optimise in general terms the capacity availability at EU/ Energy Community IPs.

The questionnaire is framed to allow respondents to share their views on approaches ensuring the optimal use of capacity and secure and reliable flow of gas, whilst allowing for proper cooperation with regard to improving gas network services at the relevant IPs.

Input from the consultation will be used by ACER and ECS to derive and share possible best practices in view of achieving better functioning markets, efficient use of infrastructure and improved security of supply.

Replies to the consultation can be submitted by 30 June 2021 23:59 hrs (CET).

To learn more and submit your views, visit the P​ublic Consultation webpage​​.

ACER and the ECS will analyse the responses received will publish a summary of the consultation, including an evaluation of the responses.

​The European Union Agency for the Cooperation of Energy Regulators (ACER) has reached a Decision on all Transmission System Operators (TSOs)' proposal defining the Capacity Calculation Regions (CCR).​

This definition includes all the​ European Union's bidding zone borders and groups them into the different capacity calculation regions. This is relevant for the functioning of the internal energy market, as it simplifies processes by forming such sub-groups (i.e. CCRs).

The determination of CCRs should combine the bidding zone borders for which the need of coordination is the highest (e.g. taking into account the interdependencies between their cross-zonal capacities) and consider where it is most efficient to apply cross regional coordination. Different regional methodologies (such as capacity calculation, re-dispatching and countertrading) will be applied on the various capacity calculation regions.

This will promote an effective coordination between bidding zone borders, which enables an optimal use of transmission infrastructure across Europe, with consequential benefits for consumers.

This Decision reflects the latest status of the internal energy market, including new or evolved bidding zone borders, additional TSOs and considering UK's withdrawal from the European Union.​

Access the ACER Decision 04-2021 and relative Annexes​.​

​​Every 2 years, ACER provides an opinion on the draft grid plans (called Ten-Year Network Development Plans or TYNDPs) proposed by the network operators.

In its Opinions on the draft 2020 plans, ACER finds that the electricity and gas plans (developed by ENTSO-E and ENTSOG respectively) do not sufficiently contribute to the efficient market due to several shortcomings. With respect to electricity, in ACER's view:​

• The TYNDP core building blocks such as scenarios development, infrastructure needs identification and cost-benefit analysis (CBA) implementation need to be improved. There are also shortcomings in public consultations on key elements of the methodologies used for the assessment of the energy projects being proposed by network operators.

• A number of shortcomings could be remedied by legislators in the current TEN-E reforms by strengthening the independent assessment of projects and the regulatory oversight of network operators. ACER has previously pointed to risks of lack of neutrality of the European Network of Transmission System Operators (ENTSOs) and the need for step changes in TEN-E governance to avoid conflict of interests while ensuring transparency.

See also the ACER Opinion on the ENTSOG gas network plan​.​

Shortcomings could be remedied by improving the TEN-E Regulation

The EU framework for energy infrastructure needs to be robust for cost-efficient cross-border projects which are best for the energy transition.

ACER believes that the shortcomings of the TYNDP process as can be remedied by improving the TEN-E investment framework in line with the European Green Deal. To this end, regulators (through ACER and CEER) issued two position papers, one in March 20​21 and one in June 202​​0 on how to improve the revision of TEN-E Regulation including on infrastructure development governance.

ACER has called on the European co-legislators to consider the regulators' proposals as a solution to promote a neutral technical assessment of infrastructure projects in line with the European Green Deal, avoiding risks of unjustified costs to European consumers.

For example, currently the transmission system operators (TSOs), through the European Network of Transmission System Operators (ENTSOs), develop the scenarios to assess projects in different futures. TSOs can be perceived as biased towards favouring more infrastructure as it is in their interest. The neutrality of scenarios and the credibility of the TYNDP process can thus be compromised. To safeguard neutrality, regulators have proposed the introduction of ACER framework guidelines for TYNDP scenarios for the ENTSOs to follow. This has been taken up in the European Commission's legislative proposals but should be further strengthened and streamlined, as suggested by regulators.

Europe's energy regulators have pointed to the need for strengthened regulatory scrutiny over the ENTSO's to safeguard the public interest, for ACER to be given the powers to approve the methodologies for the Cost-Benefit Analysis (CBAs) and to issue binding guidelines to the ENTSOs for the TYNDP development.

What are ACER's key findings of the 2020 draft electricity TYNDP?

ACER has issued two Opinions on the European Network of Transmission System Operators for Electricity (ENTSO-E) TYNDP 2020, one on methodological aspects of the electricity TYNDP 2020 and one on the TYNDP projects.

The ACER Opinions are addressed to ENTSO-E, the European Commission, the European Parliament and the Council.

What are the key improvements in the 2020 draft electricity TYNDP?

The ACER Opinions acknowledge that the TYNDP process is complex and resource intensive, and needs to be carried out within a two-year timeframe. For the elec​tricity TYNDP, ACER welcomes a number of improvements for instance in the so-called Inclusion Guidelines, the data collection process, the needs identification, and the transparency of the CBA assessment.

What are the key shortcomings of the 2020 draft electricity TYNDP?

ACER's opinion notes limited improvements and evolution of the draft plan in comparison to previous TYNDP and identifies 4 main shortcomings:

1. Delays of scenario development process and lack of data release which compromised the integrity of the TYNDP.

2. Unbalanced CBA due to the missing, non-traceable Current Trends scenario.

3. Lack of CBA analysis after the study year 2030.

4. Poor and insufficient consultations of the scenarios methodology and of the needs methodology.

​​In ACER's opinion the draft electricity TYNDP 2020 does not sufficiently contribute to the objective of efficient functioning of the market.

What does ACER recommend for improving future electricity TYNDPs?

ACER encourages the ENTSOs to address the remaining shortcomings and stands ready to provide guidance or clarifications where needed. ACER proposes several recommendations to ENTSO-E in pursuit of an efficient, further integrated and transparent network planning to serve European consumers and Europe's decarbonisation and sector integration ambitions:

For the Final Electricity TYNDP 2020

1. Provide the storyline and full data for the missing Current Trends scenario.

2. Publish the baseline capacities per border as used in the starting grid for the needs exercise and in the reference grids for the CBA calculations.

3. Include a Benefit / Cost ratio and Net Present Value calculation for all projects for each of the four scenarios.

For the Electricity TYNDP 2022 and beyond

1. Restructure the scenario development process in order to be completed by December of the year before the TYNDP.

2. Involve relevant stakeholders and experts in the development of scenario assumptions.

3. Ensure transparency of scenario development and availability of scenario data. All scenarios should be used in the needs exercise and the CBA analysis in a balanced way, using the premise of economic growth.

4. Early and substantial consultation of the needs methodology (including important parameters like the horizons to be studied, the zones modelling, the climatic years to be used).

5. Define an appropriate starting network for the needs identification.

6. Duly implement the provisions of the TYNDP Inclusion Guidelines - non-compliant projects should be excluded.

7. Consider the impact of the 70% minimum interconnection capacity target in the modelling of the power system, where relevant.

8. Transfer capacities should be calculated for all projects and with more granularity and transparency.

9. Consult the main elements of the TYNDP CBA (e.g. study horizons, criteria for the construction of the reference grid, scope of the CBA) before the inclusion of projects in the future TYNDP.

10. Build the reference grid considered for the CBA analysis, according to the Agency's recommendations.

11. ENTSO-E should extend the study horizons for which a CBA analysis is conducted for the TYNDP 2022 at least to one study year after 2030 (e.g. 2035 or 2040).

What is the TYNDP?

The main objectives of the TYNDP are to:​

• identify investment gaps (including cross border capacities

• contribute to a sufficient and non-discriminatory level of cross-border interconnections, the effective competition and the efficient functioning of the market, and

• ensure a greater transparency of the European electricity transmission network.

​The TYNDP builds on national investment plans prepared by the transmission system operators (TSOs) and takes into account the regional investment plans, published every two years.

Projects of Common Interest (PCIs) are selected from the TYNDP via a separate process led by the European Commission. The TYNDP should provide essential and comprehensive information for the selection of PCIs, in particular through complete, monetised, and reliable cost-benefit analysis (CBA) and assessment of projects.

What is the role of ACER and its overall assessment?

ACER issues an opinion on the draft network plan developed by network operators taking into account the objectives of non-discrimination, effective competition, and the efficient and secure functioning of the internal electricity market.