On Friday 3 November, the Agency for the Cooperation of Energy Regulators (ACER) published its report on progress in integrating the EU wholesale electricity market, as part of a series of market monitoring reports. The Agency assesses the functioning of the EU internal electricity market in 2022, focusing on the performance of the forward and balancing markets. It is also examining whether the electricity markets are contributing to the decarbonisation objectives of the ‘European Green Deal’.
The analysis also highlights the extent to which “market integration is essential to reinforce the electricity wholesale markets’ resilience”, in the wake of significant price rises, mainly due to Russia’s aggression against Ukraine.
By increasing cross-border interconnection capacity between Member States, ACER says consumers can benefit from, among other things, more competitive markets, enhanced long-term security of supply and mutual assistance in the event of a crisis.
Greater market integration also makes it possible to use resources more efficiently, promote renewable energy sources, increase the resilience and stability of networks and encourage innovation and investment in infrastructure.
According to ACER, progress still needs to be made, particularly in the joint cross-border allocation of capacity in the specific case of the synchronisation of the Ukrainian electricity system with that of continental Europe, since March 2022.
To improve market integration, ACER therefore recommends improving cross-border electricity exchanges, advancing electricity futures markets by expanding their development and using long-term transmission rights (LTTRs).
It also calls for transmission system operators (TSOs) to become more involved in balancing markets, to manage “redispatching” costs and to promote the deployment of renewable energy sources, particularly in regions with a high potential for renewable energy production.
To see the report: https://aeur.eu/f/9dk (Original version in French by Pauline Denys)