Bidding zones are geographical areas where electricity is traded at uniform prices. Within a bidding zone, electricity bids and offers from market participants can be matched without the need to allocate cross-zonal capacity. Currently, most bidding zones in the EU are defined by national borders.

Under the EU Electricity Regulation, bidding zones must be configured in a way that maximises economic efficiency and cross-zonal trading opportunities, while ensuring security of supply. To achieve this, a review of the existing bidding zones was needed to identify structural grid congestions and evaluate the potential benefits of alternative configurations.

On 28 April 2025, European transmission system operators (TSOs) published their report on the electricity bidding zone review study. The report, which assesses 14 bidding zone configurations across Central and Northern Europe, is intended to support EU Member States in deciding whether to amend or maintain the current bidding zone configurations.

What is ACER’s role in the process?

ACER is responsible for setting the methodology and identifying alternative bidding zone configurations for TSOs to consider in their review.

Hence, in November 2020, ACER issued a decision establishing the bidding zone review methodology. In August 2022, ACER published a second decision on the alternative bidding zone configurations to be considered for Central Europe (Germany, France, Italy and the Netherlands) and the Nordic region (Sweden). A third decision, covering the Baltic region, was issued in December 2023.

As part of its mandate under the ACER Regulation, ACER will also publish an Opinion (addressed to the Council) to assess whether electricity system operators followed the agreed methodology in their bidding zone review study and evaluate the impact of any deviations.

What are the next steps? 

ACER aims to publish its Opinion by the end of September 2025. Update: ACER published its Opinion on 18 September 2025.

Following the publication of the TSOs’ bidding zone report, Member States have six months to decide whether to amend the existing bidding zones. If individual Member States wish to amend their bidding zone configuration, but no unanimous agreement is reached among the relevant parties, the European Commission (after consulting ACER) will have six months to decide.

ACER is establishing a new European Stakeholder Committee (ESC) on cybersecurity in the electricity sector. We invite industry associations that could offer a pan-European perspective on cybersecurity aspects of cross-border electricity flows to join. 

What’s behind this?

The Network Code for Cybersecurity for Electricity came into force in June 2024. It sets out common rules to boost cyber resilience across Europe’s power systems. It calls for ACER to coordinate stakeholder engagement, in close collaboration with the European Network of Transmission System Operators for Electricity (ENTSO-E) and the EU Distribution System Operators Entity (EU DSO Entity).

What will the cybersecurity committee do?

Through this new ACER cybersecurity committee, industry associations will cooperate with each other and with the authorities referred to in the Cybersecurity Network Code to:

• identify problems and propose improvements to the implementation of the existing cybersecurity network code;
• recommend future revisions of the network code;
• identify whether any additional risk prevention rules may be needed for the electricity sector; and
• respond to technological developments in the sector.

By tackling these points, the cybersecurity committee will help maintain a high, common level of cyber resilience in Europe’s electricity grid and adapt policy to evolving digital risks.

Who can join?

Industry associations that could offer pan-European views on cybersecurity aspects of cross-border electricity flows are encouraged to take part. It is a chance to bring your insights to the table and ensure the voice of industry shapes the future of electricity cybersecurity in Europe.

Deadline to apply is 2 July 2025, with the first meeting planned for early autumn 2025. See how to apply.

See the Terms of reference for the cybersecurity committee for electricity.

ACER publishes today its Opinion on the draft electricity ten-year network development plan (TYNDP) 2024 and the Infrastructure Gaps Identification report 2024, submitted by the European Network of Transmission System Operators for Electricity (ENTSO-E).

What is the TYNDP and why is it important?

Cross-border electricity infrastructure is key to interconnecting Europe’s electricity markets, making it easier to share electricity across countries. This is important to integrate more renewables onto the grid and achieve ambitious decarbonisation goals.

Every two years, European grid operators submit their draft EU-wide ten-year network development plan (TYNDP) to ACER for its opinion. Given the scale of infrastructure needs and that related costs are expected to make up a growing share of electricity bills, having a robust and fit-for-purpose TYNDP is key to efficient grid development.

The TYNDP is expected to play a central role by identifying cross-border energy infrastructure needs and ensuring that projects bringing the most benefit for the EU are put forward.

On 9 April 2025, ENTSO-E submitted its 2024 draft TYNDP to ACER, along with the electricity Infrastructure Gaps Identification report. Developed within the framework of the TYNDP 2024, the latter provides a pan-European view of future power system needs up to 2050, focusing on cross-border infrastructure and storage capacities. It highlights where current or planned electricity projects might be insufficient to meet those future needs.

In its Opinion 04-2025, ACER provides recommendations to be addressed by ENTSO-E to finalise its 2024 TYNDP and prepare future editions. ACER’s recommendations aim to support investment decisions and facilitate the efficient development of the European electricity grid, in line with broader EU policy goals.

What are ACER’s main findings and recommendations on the 2024 draft TYNDP?

• ACER welcomes the progress made so far and acknowledges ENTSO-E’s continued effort to introduce improvements in each new edition of the TYNDP. 

• ACER finds that the 2024 draft TYNDP generally contributes to the objectives of non-discrimination and effective competition but does not sufficiently contribute to the efficient functioning of the electricity market or ensure an adequate level of cross-border interconnection open to third-party access. 

• While recognising the complexity of the TYNDP process within its two-year timeframe, ACER notes that several of its previous recommendations remain unaddressed, including the need to improve timeliness and transparency. Other aspects, like enhancing the granularity of the information provided, also need to be addressed.  

What does ACER recommend to ENTSO-E for future electricity TYNDPs and Infrastructure Gaps Identification reports? 

• Ensure timely submission of the TYNDP and of the Infrastructure Gaps Identification report to ACER by addressing the root causes of the recurring delays.

• Conduct substantial consultations on assumptions and methodologies used, well before the drafting begins.

• Strengthen the medium-term analyses (over a 10- or 15-year horizon) to identify future infrastructure gaps and assess projects’ costs and benefits more effectively.

• Improve transparency and consistency of the information on existing grids and projects.

• Base the modelling of the electricity network on an appropriate starting grid (for the gaps analysis) and reference grids (for the cost-benefit assessment).

• Provide more granular information on infrastructure needs and gaps, including an analysis of capacity constraints within Member States’ networks.

• Improve transparency of the cost-benefit analysis (CBA) results and continue work towards full implementation of the 4th CBA Guideline.

• Ensure full compliance with ACER’s Scenario Framework Guidelines and its Opinion on ENTSOs’ draft TYNDP 2024 Scenario Report.

What are the next steps?

ENTSO-E is asked to implement ACER’s recommendations both to finalise the 2024 TYNDP and to further improve its upcoming editions.

As Europe moves away from Russian fossil fuels, liquified natural gas (LNG) is becoming an increasingly important flexible supply source. But with future gas demand uncertain, the EU faces a trade-off: securing higher LNG volumes to ensure stabler pricing, while maintaining the flexibility to avoid over-contracting in a changing market.

ACER’s 2025 Monitoring Report highlights:

• LNG’s share of the EU’s total gas supply rose from 23% in 2020 to around 40% in 2024.
• The EU remained the world’s largest LNG importer, with 112 bcm imported despite a 17% drop from 2023.
• The US supplied nearly 50% of EU LNG imports, while Russian LNG to EU increased by 22%, despite sanctions. 
• Over 550 EU spot LNG trades with delivery were reported to ACER, totalling 45.5 bcm – 55% of which were priced below 35 EUR/MWh.
• The EU purchased 30 bcm of LNG on the spot market, more than any other major importer.
• The EU faces up to 90 bcm of demand uncertainty between Fit for 55 and REPowerEU scenarios, which could lead to 30 bcm in additional LNG demand by 2030 (compared to 2024 levels) and prolonged reliance on the spot market.

ACER recommendations

To manage future gas demand uncertainty and price risks, key actions are needed from policymakers, network operators and market players:

• Accelerate decarbonisation efforts to reduce structural gas demand through faster deployment of renewables and improved energy efficiency.
• Secure additional LNG through flexible contracts to help reduce short-term exposure to price volatility.
• Improve coordination and effective data-sharing between Member States and the European Commission to enable better monitoring of decarbonisation progress and guide LNG procurement.

What are the next steps? 

Register for the ACER webinar on the evolving role of LNG in Europe (28 May 2025).

Read more.