S.2.2. The Internal Energy Market

D.2.2. The Internal Energy Market

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ACER recommends how to implement new minimum margin of electricity capacity available for cross-border trade

Friday, August 9, 2019

At the beginning of August, ACER published its Recommendation on the implementation of the minimum margin available for cross-border trade, as per Article 16(8) of EU Regulation 2019/943 on the internal market for electricity (IEMR), which was published in the Official Journal of the EU on 14 June 2019 as part of the “Clean Energy for All Europeans” Package.

The recast IEMR includes a provision on capacity calculation stipulating that, as of 01 January 2020, TSOs “shall make available a minimum binding level of capacity equal to 70% for cross-zonal trade”.

ACER’s Recommendation promotes the consistent implementation of Article 16(8) by providing “guidance to TSOs on how to implement the minimum 70% capacity target and to regulatory authorities on how to monitor the achievement of this target in a harmonised and consistent way”. According to ACER, additional clarity for TSOs and regulators on how to achieve and monitor the minimum margin of electricity capacity for cross-border trade would be provided by amending EU Regulation 2015/1222 on establishing a guideline on capacity allocation and congestion management (CACM GL), which is an implementing act for Regulation 714/2009 and for the new IEMR.

However, until the CACM GL is amended, ACER outlines a harmonised approach with its Recommendation, which specifies “the data which the regulatory authorities and the Agency will request from TSOs for the purpose of monitoring the achievement of the minimum level of available cross-zonal capacity”. This is expected to enable the timely compliance with Article 16(8) of the IEMR by the TSOs, the smoother monitoring by the regulatory authorities according to Directive 2019/944 (Internal Energy Market Directive), and it will be crucial “in facilitating the Agency’s monitoring of the internal electricity market according to Article 15(1) of Regulation 2019/942” (new ACER Regulation).