ACER has issued its Opinion, directed at the European Parliament and European Commission, emphasizing the pressing need for Transmission System Operators (TSOs) to fulfill their obligation of allocating 70% of transmission capacity for cross-border electricity trading by the end of 2025. The urgency stems from the impending legal deadline and the delays in implementing many of the required measures, crucial for attaining the ambitious political goals set for renewable energy generation. The ACER opinion underscores that without substantial progress on the "70% rule", such aspirations will be challenging to realize. 2n4m46

Capacity of electricity links and the minimum 70% capacity
The transmission capacity of electricity links markets across Europe, providing advantages to consumers. This capacity is vital for facilitating the cross-border exchange of electricity, as it links the supply with the demand. Therefore, Transmission System Operators (TSOs) providing maximum transmission capacity for electricity trading is crucial to meeting the ambitious political goals established for renewable energy generation.

The minimum 70% capacity requirement mandates grid operators to ensure that at least 70% of their physical transmission capacity is available for cross-border electricity trading by the end of 2025. ACER has consistently reported that significant steps are still needed for Transmission System Operators (TSOs) to meet this obligation. As the legal deadline of 2025 approaches, ACER seeks from the European Parliament and the European Commission to ensure the completion of the necessary actions. The latest ACER report from July 2023 indicates that most Member States in highly interconnected regions of the power grid have made available only 30-50% of the capacity for certain network elements. Concurrently, grid congestion management costs in the EU exceeded €4 billion in 2022.

Importance of maximizing transmission capacity

Maximizing transmission capacity is crucial because it encomes not only the physical grid infrastructure, such as high voltage lines, but also the commercial transmission capacity made available by Transmission System Operators (TSOs) for trading with neighboring countries.

It s the integration of renewable energy sources, pivotal for the energy transition; it enhances the resilience of electricity supply by optimizing grid utilization; it mitigates price fluctuations and volatility in the electricity market, ensuring stability; it offers flexibility to market participants, enhancing overall market efficiency and responsiveness; and, ultimately, ensures equitable competition between domestic and cross-border trades, fostering a level playing field.

ACER calls for the swift implementation of three tools outlined by EU regulations to meet this requirement:

TSOs should implement coordinated measures to reduce grid congestion, such as coordinated re-dispatching and countertrading; should pursue targeted grid developments within specific bidding zones to alleviate congestion; should finalize the technical assessment of the EU's electricity bidding zones review, ensuring alignment with grid congestion. Member States and potentially the European Commission will play key roles in confirming or redefining bidding zone configurations.

ACER plans to release in June its latest Market Monitoring Report (MMR) detailing the capacity allocated for cross-border trading with neighboring countries in 2023. Following the report's publication, ACER will host a public webinar.