On 8 March 2024, with its Decision No 02/2024, ACER amended the methodology for identifying regional electricity crisis scenarios.

The amendment proposal was submitted to ACER by the European Network of Transmission System Operators for Electricity (ENTSO-E) on 8 January 2024.

What is the methodology about?

The methodology was first approved by ACER in 2020 under the EU Regulation on risk-preparedness in the electricity sector. The Regulation introduced a set of rules on how to prevent, prepare for and manage electricity crises, bringing more transparency in the preparation phase and during an electricity crisis and ensuring that measures are taken in a coordinated and effective manner.

The original methodology introduces a structured approach for regional electricity crisis scenarios (prepared by ENTSO-E) and national ones (prepared by national competent authorities) and thus serves as the basis  for the development of consistent risk-preparedness plans. The Regulation also provides for the methodology to be updated where significant new information becomes available. 

What are the main improvements in the methodology?

The key changes of the methodology are:

• A top-down process:
  • starting with 31 regional electricity crisis scenarios (from 2020);
  • merging certain scenarios or adding new ones; and
  • focusing on extreme scenarios with regional impact.
• Earlier engagement of Member States and competent authorities.
• A more pragmatic approach: ENTSO-E to undertake quantitative methods and model-based simulations where seasonal adequacy tools can be applied.

What are the next steps?

Within six months, ENTSO-E shall identify the most relevant electricity crisis scenarios at regional level (including cross-border dependencies).

ENTSO-E shall do so in close cooperation with the Electricity Coordination Group (ECG), Regional Coordination Centres (RCCs), and competent and regulatory authorities.

Learn more about the methodology.

On 17 January 2024, the National Regulatory Authorities (NRAs) of the Hansa capacity calculation region requested a six-month extension from ACER to agree on the Transmission System Operators’ (TSOs’) proposed cross-zonal capacity calculation methodology for the balancing timeframe in the Hansa region.

ACER has now granted the requested six-month extension to the EU Hansa NRAs (Denmark, Germany, the Netherlands, Poland, and Sweden).  

What is the methodology about?

The cross-zonal capacity calculation methodology for the balancing timeframe describes the rules for each Capacity Calculation Region (CCR) on calculating the amount of capacity available for the exchange of balancing energy or for operating the imbalance netting process.

Ultimately, this methodology supports TSOs in fulfilling their responsibility to maintain the stability of the electricity transmission system by ensuring an appropriate balance between electricity generation and consumption.

What are the next steps?

The Hansa NRAs have until 6 August 2024 to decide on the TSOs proposal for the cross-zonal capacity calculation methodology for the balancing timeframe in the region.

Today, ACER and the Council of European Energy Regulators (CEER) publish the second part of a two-fold consultancy study on the impact of the EU and national gas storage regulations.

What is the role of gas storage?

Gas storage is vital for supplying 25-30% of the EU’s winter gas demand and plays a key role in the security of gas supply. The increasing importance of well-filled gas storage facilities was highlighted by the recent energy crisis, helping to mitigate potential gas supply disruptions and strengthen Europe’s resilience.

The EU gas storage Regulation (2022) introduces storage filling targets and burden sharing mechanisms. From 2023, it requires underground storage facilities to be filled to 90% before starting the winter period.

What is the study about?

The aim of the study was to analyse the measures adopted by Member States to strengthen the use of underground storage facilities in the EU and their contribution to the objectives of the EU gas storage regulation.

ACER and CEER commissioned VIS Economic & Energy Consultants to conduct a two-part study on this topic. The first part (published in October 2023) focused on collecting and assessing storage measures recently applied by EU Member States. This second part assesses storage arrangements in Member States without gas storage facilities, identifies lessons learnt and makes recommendations for better use and implementation of storage measures

• Support schemes for storage: They have motivated market participants to use storage, especially when contracting capacity is linked with filling targets. Support mechanisms should complement storage users’ obligations.
• Storage filling of last resort: The efficiency of this measure could be enhanced by facilitating access to futures markets for price hedging and with implementing a strategy for releasing gas stocks back to market.
• Cross-border impacts and cost recovery:  The release of gas stocks should not oblige entities to reserve excess capacity at cross-border interconnection points (IPs). Cost recovery mechanisms should not include charges and levies imposed at IPs.
• Use-it-or-lose-it mechanism of storage capacity: A congestion management mechanism including a streamlined process for capacity release at specific milestones is useful for efficient use of storage capacity.
• Contracts for differences (CfDs): They should be defined and offered well in advance of the injection period. Direct subsidies should be provided as a last resort only if the interest in CfDs is limited.

Want to know more?

On 12 March 2024, ACER and CEER are hosting a webinar to:

• present the consultancy study’s finding on the impact of the EU and national gas storage regulations;
• offer insights into the ongoing implementation of the EU gas storage regulation;
• discuss the important role of storage with stakeholders through polls & Q&A session.

Register to the ACER-CEER webinar (12 March).

On 18 February 2024, the Dutch National Regulatory Authority (NRA), Autoriteit Consument & Markt (ACM), requested a six-month extension from ACER to adopt coordinated decisions with the Norwegian NRA, NVE-RME, on electricity cross-zonal risk hedging opportunities.

By February 2024, in accordance with the Regulation on forward capacity allocation, the Dutch and Norwegian NRAs were required to assess whether the electricity forward market in their respective bidding zone provides sufficient hedging opportunities. If these opportunities prove insufficient, the NRAs must take coordinated decisions to either:

• introduce long-term transmission rights; or
• task Transmission System Operators (TSOs) with implementing alternative measures to improve cross-zonal hedging opportunities.

What are the next steps?

ACER intends to act promptly on the ACM request, aiming to reach a decision in April 2024.

The EFTA Surveillance Authority (ESA) will decide on the extension request for NVE-RME, based on a draft from ACER, following the procedure of the Third Energy Package as outlined in the EEA Agreement.