ACER’s 2024 report finds that congestion progressively diminished in 2023 due to adjustments of gas demand, supply and flow paths to reduce reliance on Russian gas. However, the repercussions of the gas market crisis remain clear, as price convergence between European gas hubs has not yet reached the pre-crisis levels.
Addressing the most acute congestions by optimising the use of transmission capacities remains a short-term action that can help deal with tight market conditions.
What are the key findings?
The report finds that in 2023:
- Congestion diminished but remains present on those key west-east routes that allow to reduce the reliance on gas supplies from Russia.
- 35 exit and entry sides at Interconnection Points (IPs) were congested, a decrease from 50 congested IPs in 2022.
- New LNG import capacity boosted supply and helped remove congestion at entry points from Norway and the UK.
- Improved market conditions at the most critical bottlenecks reduced the spreads between hub prices.
- Total congestion revenues collected by Transmission System Operators (TSOs) amounted to €140 million, a significant drop from the €3.4 billion generated from capacity auctions in 2022. However, this figure remains high compared to the pre-crisis level of €55 million in 2021.
What does ACER recommend?
- Neighbouring TSOs should closely coordinate to maximise the availability of firm and interruptible capacities.
- Neighbouring National Regulatory Authorities (NRAs) should collaborate to remove any regulatory barriers that hinder the optimal use of the existing network for reconfigured supply routes.
- TSOs shall assess whether new investments are needed to address physical bottlenecks that persist after operational optimisations.
- NRAs need to assess whether investments to eliminate structural bottlenecks align with the EU’s energy and climate policies, and security of supply requirements.
What are the next steps?
Considering the monitoring results, the NRAs shall decide on the application of congestion management procedures in their own countries.
Dive into our infographic to explore the key figures.
