PC_2020_E_03 - Public consultation on the ENTSO-E proposal for system operation regions
The proposal for System Operation Regions, in accordance with Article 36 of Regulation (EU) 2019/943 was submitted to the Agency by ENTSO-E on 6 January 2020.
In this regard, the Agency has initiated a procedure to adopt a decision (Ref ACER-ELE-2020-002). The decision shall be adopted by 6 March 2020.
The Agency seeks the views of stakeholders on the issues raised in this proposal. Other comments and concerns are also welcome. This consultation is addressed to all interested stakeholders, including National Regulatory Authorities, and Transmission System Operators.
Responses to this consultation should be submitted by 19 January 2020 23:59 hrs (CET) via the online survey.
Documents
Cross-border issues
Cross-border issues
What's the role of ACER?
ACER is responsible for ensuring the effective functioning of the internal gas market and therefore for filling regulatory gaps between the national and the European level. ACER strongly supports the cooperation of national regulatory authorities. If mutual cooperation faces a deadlock in well-defined cases, the Agency can take cross-border actions by using its residual decision-making power.
The Agency can also make recommendations to assist regulatory authorities and market players in sharing good practices and to provide opinions supporting greater compliance with the Guidelines and Network Codes. The Agency works transparently by consulting interested parties throughout its processes and providing opportunities to collect comments and feedback.
ACER has decided on a limited number of cross-border issues, as well as provided opinions for cross-border matters and advised regulators on specific rules in relation to the Guidelines and Network Codes.
Agency decision for the selection of single capacity booking platform at 'MALLNOW IP' and 'GCP VIP
On 6 August 2019, the Agency published its Decision for the selection of the gas capacity booking platform to be used at the 'Mallnow' interconnection point and the 'GCP' virtual interconnection point between Germany and Poland. The Decision establishes the RBP platform to provide services until the concerned transmission system operators agree on the permanent use of a booking platform. This Decision was taken after having consulted relevant stakeholders and technical experts. The Agency received offers from three operational gas booking platforms in response to its Open Call, which were evaluated based on legal, IT and financial requirements. Based on these elements, ACER concluded that RBP submitted overall the most advantageous offer.
These provisions apply for a maximum of three years.
Related documents:
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2019
Cross-border issues
General Terms and Conditions in standard capacity contracts
Transport contracts for the offer of bundled capacity products are widely used in the European Union. The CAM NC has introduced several changes that harmonised the capacity contracts across the European Union. The ENTSOG template on General Terms and Conditions in standard capacity contracts collects these elements in a single document.
Having a template that is widely used across the European Union can increase the value and usefulness of bundled capacity products, as well as making the administration of contracts easier for the network users.
Cross-border issues
What does ACER say?
ACER believes the ENTSOG Template did not always go as far as would have been desirable. The Agency recommended the template should be turned into a ready-to-use contract, increasing its impact across the European Union.
Capacity
Capacity
What is it about?
The Network Code on Capacity Allocation Mechanisms (CAM NC) harmonises how network users can use the gas transmission network to enter or exit a market, and how these capacity rights can be obtained. Different forms of standard capacity products exist: there are long-term (monthly, quarterly and yearly) and short-term (day and within-day) capacity contracts. The use of the transmission network can be unrestricted (firm capacity) or with restrictions (interruptible and conditional capacity products).
To facilitate moving gas across markets, transmission system operators allow the exit from one market area with the right to enter a neighbouring market area at the interconnection points. Virtual trading points in each market place facilitate the exchange of capacity rights, so that network users can easily transfer them.
A harmonised EU-wide auction scheme supports network users to buy capacity on capacity booking platforms. In addition to harmonising rules for existing capacity, the CAM NC provides a harmonised process to build incremental-capacity.
The Guidelines on Congestion Management Procedures (CMP GL) harmonise the approaches to identify and deal with contractual congestion. The presence of contractual congestion implies that some network users cannot get the capacity product of their choice and must rely on mitigating measures to access the market. Such measures are necessary to improve the efficient network usage and the overall market efficiency, and to avoid investment in physical capacity when contracted capacity remains unused. Congestion management is strongly connected to capacity allocation, both dealing with network access rights.
Related documents
Interoperability and Data Exchange
Interoperability and Data Exchange
What is it about?
ACER monitors the effective implementation of the Interoperability and Data Exchange Network Code and shares its findings in a dedicated report. The Report focuses on interconnection agreements, gas quality and odourisation as well as data exchange.
Interoperability and Data Exchange
What are the main findings?
The Report evaluates the key features of the national implementation and compared them in a structured assessment. The Agency found different national approaches to interoperability and data exchange and provided conclusions with a view to strengthen the application of this code.
The Report assesses 19 Member States: Austria, Belgium, Bulgaria, Germany, Denmark, Greece, Spain, France Croatia, Hungary, Ireland, Italy, the Netherlands, Poland, Portugal, Sweden, Slovenia, Slovakia and United Kingdom.
↓ See also
Functionality Platform
Functionality Platform
What is it?
Launched by ACER and ENTSOG in 2016, the Gas Network Codes Functionality (FUNC) platform supported stakeholders in reporting issues with the implementation of gas Network Codes, Congestion Management Guidelines and the Transparency Annex.
As no new cases have been reported in recent years, the interactive platform has been discontinued.
New issues can still be reported via email. All previously submitted cases and related documentation are available in the section below.
Functionality Platform
How can I report new issues?
If your submission contains confidential information, claim confidentiality:
- Indicate what information is to be considered confidential and clearly identify which persons/undertakings should not have access to this information.
- Provide reasons why the persons/undertakings should not have access to the information.
- Provide a separate pdf of your submission, redacting the confidential information and providing a description of this. Your description must enable any party concerned with access to the file to determine whether there are sufficient grounds to request ACER or ENTSOG to grant access to the information claimed to be confidential. You can use a PDF editor or print out your submission and manually replace confidential information with descriptions.
ACER and ENTSOG are not responsible for disclosing any confidential information where the sender fails to claim confidentiality in accordance with the procedure above.
FUNC cases
Low-carbon gases
Low-carbon gases
How can hydrogen support the European Green Deal?
Hydrogen (H2) can be an “energy vector" - a fuel or an energy carrier and used for storage.
Low-carbon gases, such as biogas, bio methane, or hydrogen produced via electrolysis by using renewable-generated electricity (from wind, solar, etc.), are important contributors for transitioning towards a less fossil fuel dependent and, ultimately, carbon-neutral energy sector.
As hydrogen does not pollute the air when used, it is considered a vital part of the solution to meet the 2050 climate neutrality goal of the European Green Deal.
The Council of the European Union noted that by 2050 “green gases" – mainly H2 and bio methane – could represent 30% to 70% of total gas use.
For example, hydrogen can help to decarbonise “hard to abate” economic sectors (e.g. heavy transport or energy-intensive industry) where reducing carbon emissions is both needed urgently and hard to achieve. Today, the amount of hydrogen used in the EU remains limited, and it is largely produced from fossil fuels. This is set to change as envisaged in the EU’s Hydrogen Strategy.
Currently, there is little hydrogen infrastructure development. Furthermore, what exists is not covered by the existing EU gas regulatory framework. Existing gas networks could contribute to this energy transition by adapting or repurposing to handle bio methane, admixtures of hydrogen and natural gas, or pure hydrogen.
Europe’s energy transition requires major public and private sector investment. The European Commission took an important first step in the proposed revision of the TEN-E Regulation by including hydrogen transmission infrastructure (new and repurposed), storage and cross-border electrolyser facilities within its scope - a step very much welcomed by ACER-CEER.
To realise the European Green Deal’s ambitions for hydrogen, the right regulatory framework must be created to facilitate a hydrogen economy in a cost-effective way.
See below the ACER-CEER Regulatory White Paper on “When and How to Regulate Hydrogen Networks?”. Furthermore, ACER has surveyed the national regulatory authorities (NRAs) to determine whether and to what extent the national gas networks can be repurposed to transport bio-methane and hydrogen blends, and has commissioned a number of background papers (see below).
ACER has looked into the current possibilities for admixing hydrogen and injecting biomethane or transporting pure hydrogen via existing gas networks, as well as network adaptations to allow this in the future.
Selected investments will be needed to gradually increase the ability to accept “green" gases. These types of new investments may deserve greater attention in gas network development plans. Technology developments, legal, regulatory, and network development efforts should go hand in hand to achieve an efficient and timely decarbonisation of the gas sector.
ACER and the NRAs will continue working together in exploring regulatory options for this to happen in the most efficient way for energy consumers.