Taking a major step forward in coupling European electricity markets

The European member states have taken a major step forward in the coupling of the electricity markets in Europe. They have approved the text of a new Regulation, enabling transmission system operators to match supply and demand even better. That ability is becoming increasingly important as sustainable solar power and wind power are on the rise. Supply of those kinds of energy sources can vary tremendously depending on location and time. If the sun is not shining in the Netherlands, and the wind is not blowing, other European countries will have to be able to step in, and vice versa.

Lowest costs for balancing in Europe

The Netherlands Authority for Consumers and Markets (ACM), transmission system operator TenneT and the trade association of the Dutch energy industry Energie-Nederland have repeatedly made a strong case in Europe for the current system in the Netherlands. In it, market participants are given incentives to support the system’s balance themselves whenever needed. As a result, TenneT has the lowest costs for ‘balancing’ in Europe. This new European Regulation largely mirrors this system.

New rules come into force in the fall of 2017

The new Regulation is expected to come into force in the fall of 2017. The energy regulators in Europe, including ACM, are given a critical role in its implementation. This will mark the completion of the European Third Energy Package from 2011. The objective of this legislative package is to have the electricity and natural-gas markets in Europe form a single market.

Building a European market

ACM supports the objective of realizing an affordable, secure, and sustainable supply of energy. ACM promotes the free and fair trading of electricity and natural gas in Europe. And it stimulates a more efficient utilization of the networks. European market integration will result in increased security of supply, smaller price differences between European countries, and increased welfare.