ACER Proposes Improvements To The European Grids Legal Framework

Today, ACER sets out its recommendations for revising the current legal framework for the development of European grids.

Europe’s power grids need to be upgraded, expanded and optimised to connect more planned renewables and thus speed up a cost-efficient clean energy transition.

The European Commission estimated that investment needs for electricity grids will amount to €730 billion for distribution and €477 billion for transmission by 2040.

The European Commission is developing proposals (the Grids Package) to improve and simplify the current legal framework. This includes the revision and simplification of the 2022 Trans-European Energy Networks Regulation (TEN-E Regulation), a key framework for the European energy infrastructure development.

ACER puts forward a set of proposals for revising the TEN-E Regulation, focusing on key areas of network planning and assessment, including:

scenario development and the need for improved coordination within and between ENTSO-E and ENTSOG;
identification of infrastructure needs;
selection process and monitoring of Projects of Common Interest (PCIs); and
cross-border cost allocation (CBCA).

What’s does ACER recommend?

ACER’s recommendations are grouped into two categories: measures aimed at strengthening the TEN-E process to address existing challenges, and those aimed at simplifying the process.

ACER’s proposes practical measures to simplify the Ten-Year Network Development Plans (TYNDPs) processes and streamline the selection and monitoring of Projects of Common Interest (PCIs). The proposals also recognise the value of alternative solutions, such as non-wire options, to increase electricity grid capacity.

ACER recommends to:

Strengthen regulatory oversight: enhance ACER’s role in overseeing key methodologies for scenario development and infrastructure planning at the European level.
Improve identification and prioritisation of infrastructure needs: establish effective mechanisms where possible within the current framework to ensure that critical infrastructure gaps are identified and addressed with the most suitable solutions.
Streamline and simplify TEN-E processes: build on lessons learned from network development, PCI selection and PCI monitoring to make procedures more efficient and transparent.

While some of ACER’s recommendations require amendments to the current legal framework, others could be achieved through better implementation of the existing regulatory framework.