La regulación en la consecución de los Retos Energéticos: el papel de ACER

Alberto PototschnigDirector

Simposio Empresarial Internacional FUNSEAM “Retos para el Sector Energético”Barcelona, 6 Febrero 2017

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The Long-Term EU Energy Policy Goals

Efficiency

Sustainability Security of Supply

“The purpose of the Agency is to assist the NRAs inexercising, at Union level, the regulatory tasksperformed in the Member States and, wherenecessary, to coordinate their action”

Therefore, ACER is NOT a European Energy Regulator but an EU body responsible for promoting regulatory cooperation and for coordinating NRAs’ activities in the EU

… which plays a CENTRAL ROLE in the new institutional framework introduced by the Third Package

… with a WIDENING MISSION

ACER Mission

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ACER – an Expanding Role

Third Energy PackageDirectives 2009/72/EC and 2009/73/EC

Regulations (EC) No 713/2009, No 714/2009 and No 715/2009

ACER

Regulation No 1227/2011 on Wholesale Energy Market Integrity and Transparency (REMIT)

Regulation No 347/2013 on guidelines for trans-European energy infrastructure

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Types of acts which ACER can adopt

Opinions and Recommendations

TSOs/ENTSOs

NRAs

European Parliament

EU Council

European Commission

Individual decisions in specific cases(residual power)

ACER’s current mandate (1)

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Opinions on Infrastructure PlanningTen-Year Network Development Plans

Lists of Projects of Common Interest (PCIs)

NRA Support and CoordinationDecisions on Terms and Conditions for Access

to/Operational Security of Cross-border Infrastructure, Exemptions

and Cross-border Cost Allocation

Framework Guidelines for Network Codes

ACER

Market MonitoringAccess (incl. RES), Retail Prices and Consumers’

RightsWholesale Trading (REMIT)

ACER’s current mandate (2)

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In the EU Internal Electricity Market, a large share of the physical interconnection capacity is not used for trading

Share of the aggregated thermal capacity of interconnectors made available for trading – 2015 (%)

Source: Vulcanus, ENTSO-E YS&AR (2014), EW Template (2016), Nord Pool Spot, and ACER calculations. Note: HVDC refers to high voltage direct current and HVAC refers to high voltage alternating current.

HVDC - 84%

HVAC - 28%

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CSMs

HLP3: the costs of remedial actions should be shared based on the ‘polluter-pays principle’where the unscheduled flows over the overloaded network elements should be identified as ‘polluters’ and they should contribute to the costs in proportion to their contribution to the overload

HLP1: limitations on internal network elements should not be considered in the CCMs

Recommendation No 02/2016 of 11 November 2016 on High-Level Principles (HLP) for:. the common capacity calculation methodologies (CCMs). the redispatching and countertrading cost sharing

methodologies (CSMs)

CCMsHLP2: the capacity of the cross-zonal network elements considered in the CCMs should not be reduced in order to accommodate loop flows

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ACER’s Opinions, Recommendations and Decisions (2011 – 2016)

Opinions 96Recommendations 26Decisions 24- of which: Framework Guidelines 8

REMIT implementation 13Investment requests/CBCA 2“all NRA” Dec. referred to ACER 1

The European Energy Union

Energy Union

Energy security,

solidarity and trust

A fully-integrated Internal EnergyMarket

Energy efficiency/

moderation of energy demand

Decarboni-sation of the

economy

Research and Innovation

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“EU-wide regulation of the single market should be strengthened, through a significant reinforcement of the powers and independence of ACER to carry out regulatory functions at the European level in order to enable it to effectively oversee the development of the internal energy market and the related market rules as well as to deal with all cross-border issues necessary to create a seamless internal market.”

Communication from the Commission, A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy, COM(2015) 80 final, 25.2.2015, page 9

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The Energy Union Strategy and ACER

“ACER acts primarily through recommendations and opinions and has very limited decision-making rights. In line with the increased cooperation of system operators, the powers and independence of ACER may need to be reinforced so that it is able to carry out regulatory functions at European level where needed. ACER could then arbitrate in regional and EU level disputes.

The reinforcement of the powers of ACER could include giving the agency the power to adopt directly applicable and binding decisions on EU-level initiatives and cross-border issues and introduction of enforcement powers to ensure compliance with such decisions.”

Communication from the Commission launching the public consultation process on a new energy market design, COM(2015) 340 final, 15.7.2015, par. 3.4

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The New Energy Market Design and ACER

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Implementing the Energy Union Strategy:the “Clean Energy for All Europeans” proposalInternal Energy Market Measures Efficiency Sustainability Security of

Supply

Efficient use of cross-border interconnectors

Promotingbest use of resources

Reducing capacity

requirementsEfficient infrastructure development

Promotingbest use of resources

SupportingRES

penetration

Diversification of routes and

sourcesEU Resource Adequacy Assessment

Cross-borderadequacy support

Identifying SoS threats

Risk PreparednessIdentifying

responses to SoS crises

Enhanced marketdesign promoting flexibility

Promoting wider market participation

Supporting variable RES penetration

Reducing capacity

requirements

Demand response Providing

market-based peak shaving

Supporting variable RES penetration

Reducing capacity

requirements

ACER – an Expanding Role

ACER

Regulation No 1227/2011 on Wholesale Energy Market Integrity and Transparency (REMIT)

Regulation No 347/2013 on guidelines for trans-European energy infrastructure

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“Clean Energy for All Europeans” Package

Third Energy PackageDirectives 2009/72/EC and 2009/73/EC

Regulations (EC) No 713/2009, No 714/2009 and No 715/2009

Sept 2014: Possible areas for reinforcement of ACER’s powers (“Bridge to 2025”)

Oversight of ENTSOs and other Bodies

- Increasingly important role of ENTSOs- ACER to have effective oversight of the

ENTSOs in respect of their EU-wide activities- Similar oversight of other bodies with critical

or monopoly IEM functions

Stronger NRAs Coordination

- ACER to replace “all NRAs” in taking CACM 3rd level decisions

Monitoring of Markets

- ACER to be given the powers to require, and not only request, from all EU energy-sector entities the information which it needs to fulfil its monitoring mission

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The proposed new tasks for ACER at a glance

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.Directly reviewing and finalising Network Code proposals for submission to the Commission.Directly deciding on terms and conditions or methodologies for Network Code implementation (current “all NRA” decision).Deciding on the methodology and assumptions for the bidding-zone review.Defining methodologies for a coordinated European Adequacy Assessment.Defining technical parameters for the cross-border participation in capacity mechanisms.Coordinating national actions related to risk preparedness.Overseeing Regional Operation Centres.Supporting the creation of a EU DSO Entity.Possibility of issuing recommendation to NRAs and market players, on its own initiative

Network Codes

NC Development

- ACER to revise the NC proposal and submit it directly to the Commission

- ACER to propose amendments of the NC

NC Implemen-tation

- ACER to replace “all NRAs” in approving terms and conditions or methodologies for the implementation of Network Codes and Guidelines

Bidding-zone Review Process

- ACER to approve (or request amendments of) the methodology and assumptions that will be used in the bidding zone review process

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Regional Cooperation and Coordination

NRAs

- ACER to promote cooperation between NRAs at regional and EU level to ensure interoperability, communication and monitoring of regional performance in those areas which are still not harmonised at EU level

Regional Operational Centres (ROCs)

- ACER, in close cooperation with NRAs and ENTSO-E, to monitor and analyse the performance of ROCs, and to:

- decide on the configuration of system operation regions

- request information from ROCs- issue opinions and recommendations to

the Institutions- issue opinions and recommendations to

the regional groups of NRAs and to ROCs

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NEMOs and the EU DSO Entity

NEMOs

- Beyond monitoring the NEMOs in establishing their functions, ACER to:

- issue recommendations to the Commission

- request information from NEMOs where appropriate

EU DSOEntity

- ACER to provide administrative support to the DSOs in developing the draft statutes, the list of registered members and other rules for the EU DSO Entity to be established

- ACER to provide an opinion on those drafts

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Generation Adequacy and Risk Preparedness

Generation Adequacy

- ACER to approve and, where necessary, amend:

- the proposals for methodologies and calculations related to the European resource adequacy assessment

- the proposals for technical specifications for cross-border participation in capacity mechanisms

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Risk Preparedness

- ACER to approve and, where necessary, amend the methodologies for:

- identifying electricity crisis scenarios at a regional level

- short-term adequacy assessments

Electricity and Gas Sector Monitoring

Wider Monitoring Remit

- ACER to monitor not only:- retail prices of electricity and natural gas- compliance with the consumer rights- access to the networks, including access

of electricity produced from RESbut also:- potential barriers to cross-border trade- state interventions preventing prices

from reflecting actual scarcity- the performance of the Member State in

the area of the electricity security of supply, based on the results of the European resource adequacy assessment

- exceptional compensation payments between aggregators and balancing responsible parties

HOWEVER, NO POWERS TO REQUIRE INFORMATION FOR MONITORING PURPOSES

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