ACER’s Monitoring Finds Much At Stake As Grid Operators Are Still Far Off Making 70% Transmission Capacity Available For Cross-Zonal Electricity Trade

EU rules require grid operators to make a 70% minimum amount of capacity on interconnectors available for electricity trading with neighbours by the end of 2025. ACER reports on how Member States are progressing on reaching the 70% margin available for cross-zonal trade in the EU electricity markets in 2022.

What does ACER’s monitoring report find?

ACER’s report on cross-zonal capacities and the 70% margin available for cross-zonal electricity trade finds:

Interconnection capacity available for cross-zonal trade of electricity remains low across the EU. The minimum 70% target of interconnection capacity is still far off for most Member States.
Reaching the 70% target is a collective effort: Each Member State’s actions (or inactions) impact other Member States and ultimately consumers.
Lifting both internal and cross-zonal constraints is necessary to achieving the 70% target. Old barriers persist:
- Loop flows, i.e., internal trades within country A creating electrical flow through country B, thus creating congestion;
- Insufficient and costly remedial actions;
- No mechanism in place for sharing the cost of remedial actions.

Why is reaching the minimum 70% target important?

Delivering on the agreed minimum 70% target of interconnection capacity is crucial to achieving the ambitious political objectives set for renewable generation.
Reaching the 70% target will:
- Ensure security of supply;
- Mitigate price volatility; and
- Provide key flexibility to the market.
Building new lines is difficult and environmentally challenging: The 70% target allows for a more efficient use of existing lines.
The 70% target will become increasingly difficult and costly to reach. Progress towards the 70% target is unlikely to happen without tough trade-offs.

What are the next steps?

ACER is inviting feedback on its monitoring report and holding a webinar to discuss its conclusions (together with the recently published Emergency Measures report).

21 July to 15 September 2023: ACER public consultation.
6 September 2023: ACER webinar on the conclusions of the ACER report on cross-zonal capacities and on the recent ACER report on emergency measures.
End of 2023: ACER issues a formal opinion with recommendations to the European Commission and European Parliament.