CEER Reply on the European Commission’s Consultation on the European Grids Package
The Council of European Energy Regulators (CEER) has submitted its reply to the European Commission’s questionnaire on the European Grids Package, reaffirming the need for full implementation of the existing legal framework while advocating for targeted improvements to enhance delivery and efficiency.
CEER recognises the robustness and overall fitness of the current framework governing grid development in Europe. In this context, CEER underlines that rather than introducing new legislation, efforts should focus on the proper application of existing rules. Improved implementation - supported by the exchange of good practices and technical workshops - can yield meaningful progress.
Building on its continuous engagement in the European grids debate, including key joint reports and recommendations with ACER, CEER highlights several areas of consensus and concern. Many aspects of the existing framework function well including:
- The top-down EU approach to identify cross-border infrastructure needs;
- The existing legal framework for transmission network development plans;
- The current cross-border cost allocation (CBCA) framework;
- The efficiency of the existing grid needed and the priority in applying Article 18 of the Electricity Regulation on network tariff criteria;
- The resilience and security criteria for cross-border infrastructure projects, including recent and emerging risks such as climate change impacts;
- The flexibility needs in network planning and development.
However, improvements can be made in the following areas:
On permitting delays for PCIs and PMIs: CEER recognizes the need to speed up the permitting process, while safeguarding legal certainty of the current approval processes. One could consider sectioning the big-scale and complex PCIs and PMIs. When it comes to hydrogen infrastructure, we must ensure flexibility in regulation of hydrogen networks by allowing derogations and exemptions to ensure an uptake of this energy source.
On EU Infrastructure Planning: we are of the view that the ACER Opinion on TYNDP could be binding on ENTSOs to ensure a timely and genuine planning development. We also believe that projects at national level should support European priorities to ensure efficient grid development.
When it comes to the Electricity network planning at national level; as recalled in the ACER-CEER position paper on TEN-E, CEER also deems that the relevant NRA should hold approval powers over the national transmission development plans for sake of efficiency and coherence.
Transparency on electricity grid hosting capacity remains a persistent challenge. There is a need here to increase the coordination; to increase the digitalization and standardization of connection and to set up a fair management of the available network capacities.
Finally on facilitating investments in grid infrastructure: our ongoing analysis of the mechanisms (with a view of e.g. a possible consolidation of the CBCA framework with the ITC and CID mechanisms) will inform future recommendations. For now, CEER acknowledges room for improvement of existing tools but cautions against premature reforms.
CEER remains committed to working with the Commission, system operators consumers, and other stakeholders to advance an efficient, resilient, flexible, sustainable and integrated as well as consumer-centric European energy system.
Press Contact:
Mr Sasan Sharifi
Tel: +32 492 20 09 74
E-mail: sasan.sharifi@ceer.eu