Addressing Regulatory Gaps

Three areas of regulatory and voluntary action have been identified by ENTSO-E: distributed flexibility, regional cooperation and security of supply and system adequacy.

The three vision papers on “Markets and innovation deliver the Energy Union”, “Where the Energy Union starts – regions”, and “Where markets meet Security of Supply” address these three dimensions in greater detail and deliver recommendations for the forthcoming legislative initiatives.

While addressing the current challenges of markets, regions, and security of supply through these papers, the increasing interdependence of markets and operations with respect to power systems became evident again and again. Security of power supply, for example, can be widely addressed through adequate market mechanisms. With potentially shorter gate closure times in the future, markets and operations will move even closer together, while preserving the time needed to operate the system securely.

More efficiency will come from the regional initiatives and from the update of the market framework, so that flexibility is at reach from various sources. To ensure a truly regional and European approach, a regional and European-wide system adequacy approach is needed and should become an element of the new provisions on electricity security.

A seamless regulatory and operational framework is needed, anticipating forthcoming change and the consequences of the continuing energy transition. The European power system will continue to be on the move, with increasingly linked wholesale and retail markets. The debate on demand side response and active customers will shift to centre stage, together with such issues as Big Data and reliability in the age of sustainable electricity replacing other energies in heating, cooling and transport.