EU Agency for the Cooperation of Energy Regulators (ACER)

📢 Revised REMIT brings new obligations for market participants: ACER addresses algorithmic trading notifications 📑 The Regulation on Wholesale #EnergyMarket Integrity and Transparency (#REMIT) aims to prevent and protect consumers and businesses against market abuse in the #European #electricity and #gas markets. The rules were revised in May 2024 to ensure they keep pace with evolving market dynamics. 💡 In April 2024, ACER addressed several questions from stakeholders to help them comply with their reporting obligations under the revised REMIT, before it entered into force (https://lnkd.in/dmRVdr76). 🆕 As a follow up, ACER now clarifies (in an open letter) the obligations for market participants to notify national regulatory authorities and ACER on their usage of algorithmic trading and direct electronic access. 🤔 Why is the open letter relevant? 🔎 Today’s open letter provides examples on which activities fall under the new notification obligations for #AlgorithmicTrading and therefore helps market participants comply with the revised REMIT (Article 5a). 🤝 These notifications will reinforce regulatory oversight, ensure #MarketTransparency, and help manage risks associated with these advanced trading methods. 🔔 ACER invites market participants to review both open letters and ensure they meet the new obligations 👉 https://lnkd.in/dsufXwPJ

📣 ACER’s monitoring shows broad implementation of the #electricity imbalance settlement harmonisation (#ISH) methodology across the #EU. 🔎 What is the ISH methodology? 💡 Introduced in 2017 by the #ElectricityBalancing (EB) Regulation and approved by ACER in 2020, the ISH methodology aims at harmonising the main features of electricity #ImbalanceSettlement across the EU. 📊 Each #Transmission #SystemOperator (#TSO) calculates the difference between forecasted and actual #ElectricityConsumption or production for each Balance Responsible Party (#BRP) in its area. By identifying these imbalances, BRPs can take actions to support the #PowerGrid’s balance, helping maintain or restore the balance between #ElectricitySupply and demand. ✔️ With the implementation of the ISH methodology, TSOs were required to harmonise the main features of the imbalance settlement, including imbalance calculation, main components for calculating the imbalance price, and use of single or dual imbalance pricing. 🧐 What did ACER 2024 monitoring find? Based on the data received from the TSOs of 23 EU #MemberStates (the methodology is not applicable in #Malta and #Cyprus, while #Austria and #Bulgaria did not submit their data), ACER found: 👉 The ISH methodology has been fully or largely implemented in nearly all observed Member States (22). 👉 5 TSOs do not use any additional components, 19 TSOs (from 16 Member States) are using one or more additional components, and 2 TSOs are in the process of implementing the use of additional component/s. 👉 20 TSOs (from 17 Member States) use single imbalance pricing, 5 TSOs use dual pricing, while 1 TSO is in the process of implementing the use of dual pricing. Read more 👉 https://lnkd.in/dvbTejbX Explore the dashboard 👉 https://lnkd.in/dsXajxSj

🔎 We're looking for a #PolicyOfficer – Energy Retail Markets and Innovation (AD7) to join our Gas, Hydrogen and Retail Department. 💡 If you are an expert in #EnergyRetail with a keen interest in #EnergyCommunities, renewable communities, and commercial and industrial #decarbonisation, this role is for you. 📅 Deadline to #apply: 25/9/2024 (14:00 CET) You will: 🌟 Drive #energy retail monitoring and contribute to the dynamic evolution of energy markets. 🌟 Promote local energy markets, advocating #competition and #innovation. 🌟 Manage and develop #StakeholderRelations and regulatory cooperation within the energy retail sector. 🌟 Disseminate novel approaches and best practices across the European Union's regulatory and institutional framework. 🌟 Ensure the protection of vulnerable users and advocate fair treatment for all. Why ACER? 👉 #HybridWorking and flexible hours for a healthy work-life balance. 👉 Tailored professional development opportunities. 👉 Be part of a growing, motivated, and diverse team. 🎯 To see if you're a perfect fit, check out the requirements and benefits in the selection notice https://lnkd.in/dfMsK4k4 or scan through our LinkedIn #JobPost https://lnkd.in/dx-DuRhh

💼 Job alert: we’re hiring a #PolicyOfficer – Methane Emissions (FGIV)! 🚀 Join our #EnergySystemNeeds team to help implement the new #EU Regulation on #MethaneEmissions reduction & develop key emissions cost indicators. 📅 Deadline to #apply: 5/9/2024 (14:00 CET) You will: 👉 Contribute to identifying costs and investments for #GasNetwork operators to comply with the methane emissions Regulation. 👉 Develop indicators and reference values for unit costs related to the measurement, reporting, and abatement of methane emissions. 👉 Collaborate with the European Commission and #stakeholders to gather relevant #data for these indicators. 👉 Track developments in methane emissions monitoring and reporting activities, including new technologies to abate emissions for regulated #gas infrastructure. 👉 Support the team in crafting regulatory proposals to efficiently reduce methane emissions. See the vacancy notice 🔗 https://lnkd.in/dgNQVBdn Check the LinkedIn job post 🔗 https://lnkd.in/dbkRyszD

✔️ ACER grants regulators more time to decide on a new method for calculating #electricity reserves. 📅 On 22 May 2024, the National Regulatory Authorities (#NRAs) of the Continental #Europe Synchronous Area (CE) requested from ACER a six-month extension to decide on the Transmission System Operators’ (#TSOs') proposal to introduce a probabilistic dimensioning approach of Frequency Containment Reserves (#FCRs). ⏳ On 23 July 2024, ACER has granted the requested extension to the CE NRAs, who now have until 17 January 2025 to reach an agreement on the TSOs’ proposal for probabilistic dimensioning. 🤔 Why consider probabilistic dimensioning for FCR? 🔎 FCRs (also known as primary control reserves) are active power reserves necessary to stabilise the #PowerGrid’s frequency after an imbalance between supply and demand caused by an #outage. The proposed probabilistic dimensioning for FCRs aims to enhance the #PowerSystem’s resilience by considering load and generation patterns, as well as inertia factors. This approach aims to reduce the probability of insufficient FCR capacity to once every 20 years or less. 🌍 The countries of the Continental Europe Synchronous Area are #Austria, #Belgium, #Bulgaria, #Croatia, #Czechia, #Denmark, #France, #Germany, #Greece, #Hungary, #Italy, #Luxembourg, the #Netherlands, #Poland, #Portugal, #Romania, #Slovakia, #Slovenia and #Spain. Read more 👉 https://lnkd.in/dZpC6weY

📝 ACER releases its report on the #Slovakian #GasTransmission tariffs proposed by eustream, a.s., the Transmission System Operator (#TSO) of #Slovakia. 💡 The proposed methodology considers the changes in #network patterns caused by the 2022 #EnergyCrisis. What does ACER recommend? 🔎 ACER analysed the information provided by Eustream to assess the compliance of the proposed methodology with the requirements of the #NetworkCode on Harmonised Transmission Tariff Structures (#NCTAR) and provides recommendations. What are the next steps?  ✔️ ACER invites URSO, the National Regulatory Authority (#NRA) of Slovakia, to consider the recommendations included in this report, either by complementing its motivated decision (published on 5 June 2024) or in the next consultation on the reference price methodology (provided this occurs by 2025). Read more 👉 https://lnkd.in/duyprTh2

📑 ACER’s monitoring shows the #EU #GasBalancing systems managed to adjust to new supply and demand conditions. 🔎 The Gas Balancing Network Code (BAL NC) establishes market-based rules to ensure that #gas supply and demand are balanced efficiently within the EU. Its aim is to promote short-term gas wholesale markets by financially incentivising network users to balance their positions using daily or within-day products, thus enhancing market #flexibility and #efficiency. 🧐 ACER annually monitors the effects of the BAL NC implementation and provides key indicators to help better understand balancing actions across #MemberStates. 📢 Today, ACER publishes the highlights of key indicators (also in a dashboard) on the EU gas balancing system for the #GasYear 2022-2023. What are the key findings of ACER’s latest analysis? 📊 ACER analysed key indicators from the EU balancing systems in the gas year 2022-2023, comparing with previous years and among Member States. Key findings: 👉 Balancing prices (both for Transmission System Operators' and network users' activity) have decreased substantially compared to the previous gas year (2021-2022), aligning with broader wholesale gas market trends. 👉 These lower prices led to reduced net neutrality positions (net payments charged or credited to network users), marking a positive market development. 👉 #TSO balancing actions, as a share of total market volumes, remained stable compared to the pre-crisis period. However, most systems saw an increase in TSO sell actions year-on-year, suggesting the need for further investigations at the national level to assess potential #SecurityOfSupply implications. What are the next steps? ⏭ ACER recommends National Regulatory Authorities (#NRAs) to regularly assess the performance of their #BalancingRegimes and consider adjusting the design based on changing market conditions. 🔗 https://lnkd.in/dVD-_pdP

📢 Just out! ACER Opinion: EU gas network set to meet demand and winter storage goals. 📑 ACER issues its Opinion on the Summer Supply Outlook 2024 published by ENTSOG. 🔎 What’s in ENTSOG’s Summer Outlook 2024? ENTSOG’s Summer Outlook 2024 evaluates the expected #GasSupply and the capacity of #EUgas infrastructure to meet demand, exports, and storage needs during summer 2024. It focuses on the goal of filling #GasStorage to 90% by 30 September 2024, considering scenarios of minimised and complete disruption of Russian pipeline supply, and varying Liquified Natural Gas (#LNG) supply levels. The Outlook key findings highlight that new #LNGterminals have reduced the EU’s dependence on Russian gas. Combined with high storage levels at the start of the summer 2024, this could allow the EU to fill its #gas storage without relying on Russia. Gas storage remains crucial for security of gas supply, providing essential flexibility to the gas system during winter. In its Opinion, ACER: 👉 acknowledges improvements in ENTSOG’s Outlook methodology and appreciates the inclusion of gas supply scenarios addressing major supply risks and uncertainties; 👉 notes that gas storage filling levels reached 75% in early July, one of the highest levels in the past five summers, which allows for cautious optimism for the summer ahead; 👉 agrees with ENTSOG’s recommendations to reduce gas demand and increase #LNG imports from different sources to ensure adequate #SecurityOfSupply levels for the winter of 2024/25; 👉 stresses the importance of closely monitoring #GasSupply flows and storage filling trajectories. ACER recommends ENTSOG to further improve its Outlook methodology by: 📌 Considering a low LNG supply scenario that excludes Russian LNG supply imports. 📌 Assessing the consistency of Transmission System Operators’ (#TSOs’) #GasDemand projections with estimates from other entities and with #European recommendations for gas demand reduction. 📌 Providing more detailed information on additional LNG import and cross-border capacities introduced by projects recently commissioned and expected to be commissioned in the next six months. 📌 Including data on the future gas #WholesalePrice for reference. Read more 👉 https://lnkd.in/dt7BHyBa

Today, ACER releases its second quarterly review of key developments in European #gas wholesale markets as part of its 2024 #MarketMonitoringReport (MMR) 🔎 This report highlights the main trends in Europe’s #GasMarkets in the first half of 2024 & identifies upcoming challenges arising from global developments (flows via #Ukraine, global #LNGMarkets etc.) 🛳🌎 What gas market trends did ACER monitoring find? The report finds volatile prices and supply changes in #European gas markets in the first half of 2024: 👉 Gas prices: at the end of Q1, European gas wholesale prices fell to levels not seen since before the #EnergyCrisis but increased in Q2 as markets re-focused on supply risks, including a tighter global #LiquefiedNaturalGas (#LNG) market. 👉 Price integration has not yet returned to pre-crisis levels, in part due to increased transportation costs. No critical #NetworkCongestion in Europe’s gas market in the first half of 2024. 👉 Pipeline and #LNGSupply: gas pipeline supply to the #EU was stable. LNG remained key for EU supply. 👉 Gas #demand fell: in the first half of 2024, gas-fired power generation in the EU decreased by 16% compared to the same period last year. 👉 #GasStorage: In Q2 2024, the EU injected 41 TWh less gas into storage compared to Q2 2023. Despite the slower rate, storages are on course to reach the mandated filling level of 90% by 1 November. The #storage level reached in Q2 2024 is one of the highest in the past five summers. What challenges lie ahead? ▶️ The transportation agreement for #RussianGas through Ukraine expires by the end of 2024, and its renewal is unlikely. Landlocked Central European countries will need alternative supply routes, making cross-border trade essential for affordable gas. ▶️ Hurricane season in the Atlantic (from June to October) could affect LNG production and transportation in the Gulf of Mexico, reducing global LNG supply and tightening European gas balances. ▶️ Any delays in concluding the scheduled maintenance of Norwegian upstream gas assets in September could trigger #PriceVolatility. ▶️ If gas withdrawals significantly exceed those of the past two winters, EU buyers may need to increase their competitiveness in the #LNGMarkets to replenish stocks in 2025, potentially impacting #WholesalePrices. Weather conditions will play a key role in exposing or mitigating these risks. ▶️ Several LNG production projects are nearing completion, with first cargoes expected in 2025, which could help stabilise gas prices. Significant additional LNG volumes are anticipated from 2026 onwards, as several large projects are scheduled to come online. ACER will continue to closely monitor trends in the European gas markets that could lead to short-term volatility for European #energy markets. The next update on the European gas #WholesaleMarkets will be published in October 2024 📅 Read more 👉https://lnkd.in/eyikZpJD

🌍 ACER discusses the challenge in rising energy network costs, interconnected EU power markets and flexibility needs with EU Energy Ministers. ACER’s Christian Pilgaard Zinglersen joined EU #Energy Ministers at today‘s Informal #Ministerial meeting in #Budapest, under the Hungarian Presidency of the Council of the EU #HU24EU. Addressing the rise in electricity network costs and flexibility needs (to accommodate more renewables), a key message from Mr Zinglersen, Director of the EU Agency for the Cooperation of Energy Regulators (ACER), is that ‘Efficiency First’ principles should also apply to electricity grid infrastructure, targeting the enhancement of grid capacities as a crucial complement to the build-out of new grid. Pointing out that average electricity network use often is rather low, Mr Zinglersen offered several options available to Member States to “get more out of what we have” or what will soon be built: ⚡ Enhance the capacity of the current power grid – this means (as an alternative to always building new lines) incentivising less expensive, innovative grid technologies to increase the capacity of the current grid. 🎯 Increase flexibility of the system as a key corollary to reaping greater efficiencies – requiring more demand-response, thus also targeting the many barriers holding it back (many of which are “hiding in plain sight”). 💡 Maximise the use of interconnectors, a key contributor to meet flexibility needs as well as security of supply – here more attention is needed, including politically, to make sure sufficient transmission capacity is made available for cross-border trade. Stressing the urgency, he also pointed to the necessary steps to get there: o  Transmission System Operators (TSOs) to make optimal and coordinated use of remedies to relieve congestions in the grid o  TSOs to undertake targeted grid developments o  TSOs to complete the bidding-zone review process and Member States / European Commission to decide Recalling that flexibility needs to double by 2030, he encouraged Member States to consider a comprehensive ‘flexibility check’ at national level and foster flexibility to integrate more renewables in the system. Mr Zinglersen pointed to the need to secure ever-greater “trust” among Member States if governments wish to leverage more integrated EU energy markets for enhanced EU competitiveness in the years ahead. Mr Zinglersen flagged key insights from several recent ACER publications: 👉 ACER’s report on capacities for cross-zonal trade of electricity and congestion management https://lnkd.in/geQyytGu 👉 ACER consultancy study by the Florence School of Regulation on incentivising efficient investments in electricity grids https://lnkd.in/dpCvuqSc 👉 ACER-CEER paper: Challenges of the future electricity system https://lnkd.in/dzmZytfd 🔗ACER Director’s PPT https://lnkd.in/gqxg6QJr