Risk Identification, Assessment and Preparedness to Prevent Scarcity Situations

Regional or cross-regional adequacy assessments are needed to identify adequacy risks while accounting for the structural heterogeneity of European power systems. Risk preparedness for electricity is deeply rooted in delivering system adequacy and ensuring system security in operational planning and system operation (e.g., in the form of adequacy planning, defence and restoration plans). Regionally coordinated risk preparedness plans will be crucially important to managing scarcity situations and preserving security of supply.

ENTSO-E recommends a common template for each of the types of risk-preparedness plan, with common definitions at EU level provided in addition to a clear common definition of the concept of ‘risk preparedness plan’ across Europe. Such common templates and definitions should not, however, preclude Member States from taking into account their national sensitivities and specificities.

The common template can be integrated into ENTSO-E adequacy reports’ structure and serve as a guide to Member States’ further actions by ensuring an efficient and consistent approach across the national, regional and EU level. Without prejudging each Member State’s ability to fix its own level of security of supply, there should be common definitions of indicators and common methodologies for risk assessment. Risks of local supply disruption can be addressed best at the national level, in close cooperation with DSOs when needed.

ENTSO-E has developed early on, with its members, regional cooperation and coordination as to improve system adequacy. Stronger regional coordination of risk preparedness should now be encouraged. Risk preparedness plans should be prepared at the national level and strongly coordinated at the regional and European levels. TSOs should prepare risk preparedness plans and use RSCIs to assist in the preparation of plans at the regional level. 1

towers.jpg

A European overview on anticipated decommissioning of power plants is needed to improve the quality of the data and accuracy of the adequacy assessments. Further rules at the EU level with regard to obligations for reporting decommissioning/mothballing plans by owners of large (> 100 MW) and “system-relevant” generators on a rolling basis to the relevant TSOs can further help provide a pan-EU view on generation adequacy and expectations and input to ENTSO-E’s adequacy forecasts.

Remedial actions can be taken on the basis of identified risks, and the adequacy assessments will facilitate the identification of relevant solutions. Adaptations of the market design can be necessary to guarantee the desired level of security of supply. Those actions can be market-wide and complement the energy market or targeted to specific power plants identified as “system relevant.”

In addition, the Electricity Coordination Group (ECG) provides a cooperation framework for TSOs, NRAs and Member States, ACER, EC and ENTSO-E to interact at the relevant technical level regarding regional assessments of security of supply and common definitions, as well as the definition of ‘risk preparedness plans’ itself.

Recommendations

  1. TSOs should establish a common definition of risk preparedness plans at the EU level and should develop a common template for risk preparedness plans, to be discussed at the Electricity Coordination Group and approved by the relevant NRAs.

  2. DSOs and market parties (Generators, Consumers, PXs, etc.) should be consulted by TSOs when drafting each national risk preparedness plan.

  3. RSCIs together with TSOs will ensure regional coordination on risk preparedness plans so that plans are consistent with each other and coherent at the regional level and maximise the benefits of regional coordination (through Multilateral Remedial Actions).

  4. The common template should be integrated into ENTSO-E adequacy reports’ structure to serve as a guide for Member States’ further actions.

  1. See the paper “Where the Energy Union Starts: Regions”