ACER consultations regarding energy resources

  • Reading time:3 mins read

Pursuant to the announcement issued by the Energy Regulatory Office: The European Agency for Cooperation of Energy Regulators (ACER) conducts public consultations regarding methods of assessing whether the European Union has sufficient electricity resources needed to meet future demand, and thus ensuring energy security. These methodologies, set out in the Clean Energy Package for all Europeans, are key to ensuring and improving the reliability of electricity supply in Europe. The consultations will last until May 27 this year.

Pursuant to the Regulation of the European Parliament and of the Council of 5 June 2019 on the internal electricity market, which regulates the operation of the common electricity market, including the functioning of mechanisms regarding the sufficiency of resources – both in relation to existing mechanisms (i.e. those that have been accepted by European Commission before the entry into force of this regulation), as well as planned mechanisms. In the case of Poland, the power market is such a mechanism.

Pursuant to the provisions of this regulation, the application of the mechanism ensuring the sufficiency of resources should be preceded by a number of analyzes, which should include assessing resource adequacy at European level. Member States should also take a number of actions to eliminate the disturbances found in the functioning of the electricity market. Mechanisms related to ensuring the sufficiency of resources should be introduced only when all other possibilities of solving problems related to the functioning of the market have been exhausted. In addition – in accordance with the provisions of the regulation on the internal energy market – it is necessary to prepare methodologies on the basis of which the relevant authorities will carry out analyzes or calculations. These include the methodology on the basis of which it will be established:

  • Value of lost load – VoLL;
  • Cost of new entry – CoNe);
  • Reliability standard – RS)
  • European resource adequacy assessment, ERAA).

The method of European resource adequacy assessment will be carried out annually by the organization associating European transmission network operators ENTSO-E (European Network of Transmission System Operators for Electricity), based on data provided by national transmission system operators. This will allow an assessment of the overall adequacy of the electricity system to meet current and projected electricity demand and possible identification of problems with resource adequacy at Union level, at Member State level and, in justified cases, at the level of individual market zones.

The European Agency for the Cooperation of Energy Regulators and the Energy Regulatory Office encourage interested parties to participate in public consultations. ACER is currently conducting public consultations to decide on proposed methodologies. After the consultations, ACER will consider the opinions submitted during them and within three months, i.e. by August 5 this year, will decide whether to approve or modify the methodology. Regulators from EU Member States will be involved in preparing the final decision.

ERO statement