At the beginning of June, the first guidelines aimed at achieving the 2030 objectives were approved. These directives and regulations went largely unnoticed since they set fairly generic objectives, but their importance is that they are aimed at homogenising the European electricity market.
On June 5, the European Parliament approved a directive and three regulations aimed at continuing to integrate the European electricity market under the foundations of the energy transition.
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 establishes the common rules for the internal market in electricity and amending Directive 2012/27 / EU.
It establishes common rules on the generation, transport, distribution, storage of energy and electricity supply with a view to creating a fully integrated electricity market. It is based on cooperation between States to achieve this objective. In the harmonization of markets and regulations for the correct integration.
Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019
Also approved was Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal electricity market, which establishes the bases for the achievement of the Energy Union, bearing in mind that it must be oriented towards the climate policy objectives for 2030.
This regulation establishes the entities and the fundamental principles related to the operation of the electricity markets that guarantee the operation and operation of the markets.
It establishes the collaboration of the commission with the member states to carry out a just transition. An integration of the electricity market that allows and facilitates the integration of new concepts such as the distributed demand aggregator or energy storage.
It implements the fundamental principles of the daily and intraday market, of the cross-border electricity trade, always maintaining security of supply.
It establishes the premises to carry out the European and national coverage analysis on an annual basis.
Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019
Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019, defining new functions for the European Union Agency for the Cooperation of Energy Regulators (ACER), establishes the steps to follow for collaboration between states due to the need for coordination in national regulations.
The ACER is created with the objective of assisting the regulatory authorities in their performance, coordinate their actions and mediate disagreements between member states and solve them. It also aims to contribute to the achievement of the objective in terms of climate and energy.
Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019
Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on preparedness for risks in the electricity sector and repealing Directive 2005/89 / EC.
This Regulation lays down the rules concerning cooperation between the Member States with a view to preventing the risks of the electricity crises, preparing for them and managing them taking into account the requirements of a competitive and integrated internal electricity market. Member states have to designate a competent authority for this.
The regulation designates the European Network of Electricity Transport Network Managers («REGRT de Electricidad») and the States to determine crisis scenarios, to guarantee that all possibilities are covered.
With the publication of this directive and the corresponding regulations, a new era in the integration of markets is opening up and the underlying commitment of the European Union regarding climate change is reflected.
Background: the harmonization of the spot market (All NEMO’s proposal for harmonized maximum and minimum clearing prices for Single Day Ahead Coupling in accordance with Articles 41 (1) of Commission Regulation (EU) 2015/1222 of July 2015 establishing a guideline on capacity allocation and congestion management)
The fact that the spot market is harmonized in Europe implies the emergence of a common standard that brings together measures as important as maximum and minimum price limits.
These decisions establish measures among which we find the establishment of maximum and minimum prices, a fundamental measure within such disparate markets.
In 2017, a common proposal developed by all Nominated Electric Operator Markets (“NEMO”) was developed and ACER approved the maximum and minimum prices in articles 41 (1) and 54 (2) where they are defined as: of 3,000 euros / megawatt hour (MWh) and minus 500 euros / MWh.
In this sense we are presented with a series of questions regarding whether our market is ready to adapt to the European maximum and minimum price bands.
Another uncertainty is how agents react, since these disparities between current limits affect both consumers and generators.
Marta Serrano | Energy Consultant