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ACER sees the coming months as a likely key ‘make or break’ moment for EU energy market integration; one where fully making available cross-border capacities for gas and electricity flows will prove key.
Europe’s energy solidarity is being tested with the continuing war in Ukraine. Prices are high. Using different gas supply routes has resulted in network congestion and disrupted gas market’s price integration. Some Member States face significant supply challenges that are unlikely to go away soon. Other Member States, even if net exporters of energy, depend on imports for significant hours during the year.
If some countries were to pursue strictly national short-term energy interests, e.g. via restricting energy exports, others would likely suffer. This requires heightened vigilance from regulators, system operators and governments alike.
The solution needs to be European solidarity. Why?
- Maximising capacities for cross-border trade will improve the security of supply of the EU as a whole and help to stabilise electricity and gas prices.
- Cross-border capacity is crucial for market integration, and even more critical during an energy crisis where supply margins can become much tighter.
- Electricity imports could be essential for all.
- Restricting flows between countries is often claimed to be a ‘last resort’, but experience shows that it may be deployed early on to protect what are perceived to be national interests. If all Member States were to ‘play it safe’ and restrict trade, many countries would sooner or later find themselves worse off.
See further details, including graphs, in the ACER Press Release.
