A disturbing ACER report on the security of energy supplies in the EU

Today, the Agency for the Cooperation of Energy Regulators (ACER) released a report focusing on the security of electricity supply in the European Union for the year 2023. ACER’s core mission revolves around ensuring the effective functioning of the unified European gas and electricity market.

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What does the report cover?

Within this report, valuable insights have been gathered from the energy crisis, shedding light on the factors that played a role in its occurrence. Understanding these factors is crucial to prevent their recurrence in the future.

Furthermore, the report provides an update on the current status of the implementation of the EU framework for energy adequacy. This framework outlines the minimum energy resource standards that EU Member States are obligated to uphold, thereby ensuring the uninterrupted availability of energy supply.

Furthermore, the report delves into the examination of capacity mechanisms. These mechanisms encompass the strategies that countries implement to guarantee an adequate energy supply in times of scarcity. Such measures could encompass expanding generation capacity, energy storage initiatives, or bolstering energy efficiency efforts.

Additionally, the report explores the diverse array of national energy security measures and strategies established at the country level. These encompass regulations, subsidy policies, and infrastructure projects, all contributing to the broader goal of bolstering energy security.

The most important conclusions from the report

As outlined by the report’s authors, collaborative efforts at the European Union level play a pivotal role in enhancing the security of energy supplies. Nonetheless, it’s essential to recognize that the execution of the energy adequacy framework varies across the EU member states, potentially leading to inequitable international competition.

It’s worth noting that the cumulative expenses associated with EU capacity mechanisms have experienced substantial growth in recent years. They doubled from €2.6 billion in 2020 to €5.2 billion in 2022 and subsequently escalated by an additional 40 percent in 2023.

The report highlights a notable trend where capacity mechanisms predominantly favor power plants reliant on fossil fuels like coal and gas. This preference could pose a challenge to the overarching goal of transitioning towards a low-emission economy.

Additionally, the introduction of uncoordinated measures by Member States to safeguard their energy supply, beyond what capacity mechanisms already cover, carries the risk of fragmenting the integrated electricity market.

Next steps

ACER is scheduled to unveil the key findings of the EU Security of Electricity Supply report during a webinar on October 11, 2023.

Distinguished panelists including Catharina Sikow-Magny from DG-ENER, Christian Zinglersen from ACER, and Tim Schittekatte representing the Florence School of Regulation will engage in a comprehensive discussion regarding the report’s insights. They will also address pivotal questions pertaining to this vital topic.

Source: acer.europa.eu