Activities of Maria da Graça CARVALHO related to 2023/0077(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2019/943 and (EU) 2019/942 as well as Directives (EU) 2018/2001 and (EU) 2019/944 to improve the Union’s electricity market design
Amendments (78)
Amendment 204 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) Strengthening the energy internal market and achieving the climate and energy transition objectives require a substantial upgrade of the EU’s electricity network to be able to host substantial increases of renewable capacity, variability on generation amounts, changing electricity flow patterns across Europe and new demand such as electric vehicles and heat pumps. Investments in grids are crucial to the well-functioning of the internal market, to the integration of renewable energy, to support security of supply and to effectively connect energy supply and demand in a context where those locate further apart, and the deliverance and EU climate and energy targets require efficient resource use within and across borders. Already by 2030, the EU requires EUR 584 billion investments to cover the needs in electricity grids alone, both transmission and distribution. The challenge is particularly notable at distribution level, given the growing amount of renewable generation capacity connected to distribution grids, which will connect most new renewable projects, and the developments towards the electrification and smartening of energy demand. A failure to expand, upgrade and smarten the distribution grids accordingly could put at risk delivering on the EU’s renewable targets, delaying the connection to the network of new renewable capacities; could hamper the possibility for consumers to become active players of the energy transition; and ultimately delay the completion of the internal energy market.
Amendment 206 #
Proposal for a regulation
Recital 6 b (new)
Recital 6 b (new)
(6b) An inter-connected European electricity network is essential for European security of supply and competitiveness, as well as for better achieving the decarbonisation targets to which the Union has committed to facilitate affordable, safe and sustainable energy. Therefore, any reform of the EU’s electricity market should be an evaluation and contribution towards a more integrated European electricity network. It is particularly important to make sure that each country has in place electricity cables that allow at least 15% of the electricity produced on its territory to be transported across its borders to neighbouring countries. This is particularly important for Iberian Peninsula and for other European regions which need to extend their grid interconnections, but whose progresses are still slow and challenged by several aspects. To this end, the Union and Member States should cooperate in view of removing barriers, facilitate financing and accelerating all procedures to ensure that the minimum 15% electricity interconnection target set out in Article 4, point (d)(1), of Regulation (EU) 2018/1999 is met.
Amendment 207 #
Proposal for a regulation
Recital 6 c (new)
Recital 6 c (new)
(6c) The increase and prioritization of Union funding for energy infrastructure should be a core element of the upcoming MFF mid-term review, where options for boosting and aligning relevant instruments, including the energy envelope of the Connection Europe Facility, should be a matter of priority. In this regard, special attention should be put on making ample room for financing of infrastructure projects that have wider EU benefits.
Amendment 208 #
Proposal for a regulation
Recital 6 d (new)
Recital 6 d (new)
(6d) Building and upgrading the Union’s electricity network and connectivity infrastructure, such as the projects of common European interest (PCIs) as established by the framework concerning the Trans-European Networks for Energy, including through submarine cables, can contribute to connect remote areas and islands, thus providing adequate connectivity to all EU citizens. An appropriate investment in revitalising isolated territories, such as islands and rural areas, can bring major opportunities to citizens and enterprises to participate in the energy transition and the digital transformation of the Union. Special consideration should be made to the European outermost regions, in accordance with Article 349 of the Treaty on the Functioning of the Union, which recognises their specific constraints and provides for the adoption of specific measures in their regard.
Amendment 209 #
Proposal for a regulation
Recital 7
Recital 7
(7) The current electricity market design has also helped the emergence of new and innovative products, services and measures on retail electricity markets, supporting energy efficiency and renewable energy uptake and enhancing choice so as to help consumers reduce their energy bills also through small-scale generation installations and emerging services for providing demand response. Building on and seizing the potential of the digitalisation of the energy system, such as active participation by consumers, should be a key element of our future electricity markets and systems. At the same time, there is a need to respect consumer choices and allow consumers to benefit from a variety of contract offers. Energy system integration should be intended as the planning and operation of the energy system as a whole, across multiple energy carriers, infrastructures, and consumption sectors, by creating stronger links between them and utilising multi- fuel, multi-generation, including cogeneration or trigeneration, hybrid solutions, as well as all types of storage, aggregation and controls, in synergy with each other and supported by digitalisation with the objective of delivering affordable, reliable and resource-efficient energy services, at the least possible cost for society.
Amendment 215 #
Proposal for a regulation
Recital 10
Recital 10
(10) The changes to the electricity market design should ensure that the benefits from rising renewable power deployment, and the energy transition as a whole, are brought to consumers, including the most vulnerable ones, and ultimately, shield them from energy crises and avoid more households falling into energy poverty trap. These should mitigate the impact of high fossiler energy system costs, including fossil and renewable fuel prices, notably that of gas, on electricity prices, aiming to allow households and companies to reap the benefits of affordable and secure energy from sustainable renewable and low carbon sources in the longer term, as well as the role of energy efficient solutions in reducing overall energy costs, which may reduce the need for power grid and generation capacity expansion.
Amendment 217 #
Proposal for a regulation
Recital 11
Recital 11
(11) The reform of the electricity market design should benefit not just household consumers but also the competitiveness of the Union’s industries by facilitating their possibilities to make the clean tech investments they require to meet their net zero transition paths. The energy transition in the Union needs to be supported by a strong clean technology manufacturing basis. These reforms will support the affordableindustry to secure their access to affordable and continuous supply of clean power and heat, including via renewable and smart electrification, of industryn-site renewables and high efficiency cogeneration uptake, and the Union’s position as a global leader in terms of research and innovation in clean energy technologies.
Amendment 222 #
Proposal for a regulation
Recital 14
Recital 14
(14) It is therefore important for the intraday markets to adapt to the participation of variable renewable energy technologies such as solar and wind as well as to the participation of demand side response and storage. The liquidity of the intraday markets should be improved with the sharing of the order books between market operators within a bidding zone, also when the cross-zonal capacities are set to zero or after the gate closure time of the intraday market. Furthermore, it is essential to properly assess the possibility to shorten the gate closure time of the intraday market should be seand set it closer to the time of delivery to, in view of maximizeing the opportunities for market participants to trade shortages and surplus of electricity and contribute to better integrating variable renewables in the electricity system. The impact on several dimensions, such as transmission system operators' operation, costs- efficiency, integration of renewable energies, system security, CO2 emissions, should be carefully assessed, in consultation with market operators, market participants and all relevant entities. On the basis of the assessment, the Commission should propose an amendment to the Commission Regulation EU 2015/1222 on Capacity Allocation and Congestion Management.
Amendment 227 #
Proposal for a regulation
Recital 16
Recital 16
Amendment 232 #
Proposal for a regulation
Recital 17
Recital 17
(17) In order to be able to actively participate in the electricity markets and to provide their flexibility, consumers are progressively equipped with smart metering systems. However, in a number of Member States the roll-out of smart metering systems is still slow and it is imperative to make sure that Member States improve the conditions for the installation of smart metring systems, with the objective of reaching a full coverage as soon as possible. In those instances where smart metering systems are not yet installed and in instances where smart metering systems do not provide for the sufficient level of data granularity, transmission and distribution system operators should be able to use data from dedicated metering devices for the observability and settlement of flexibility services such as demand response and energy storage. Enabling the use of data from dedicated metering devices for observability and settlement should facilitate the active participation of the consumers in the market and the development of their demand response. The use of data from these dedicated metering devices should be accompanied by quality requirements relating to the data.
Amendment 239 #
Proposal for a regulation
Recital 19
Recital 19
(19) Consumers and suppliers need effective and efficient forward markets to cover their long-term price exposure and decrease the dependence on short-term prices. To ensure that energy customers all over the EU can fully benefit from the advantages of integrated electricity markets and competition across the Union, the functioning of the Union’s electricity forward market should be improved via the establishment of regional virtual hubs with a viewassessment and implementation of possible feasible measures in a reasonable period within the current market set-up, with the aim to overcome the existing market fragmentation and the low liquidity experienced in many bidding zones. Regional virtual hubs should cover multiple bidding zones while ensuring an adequate price correlation. Some bidding zones may not be covered by a virtual hub in terms of contributing to the hub reference price. However, market participants from these bidding zones should still be able to hedge through a hubThese improvements could for instance be more frequent auctions or other maturities to be considered and would require a proper assessment.
Amendment 241 #
Proposal for a regulation
Recital 20
Recital 20
Amendment 249 #
Proposal for a regulation
Recital 21
Recital 21
(21) To enhance the possibilities of market participants for hedging, the role of the single allocation platform established in accordance with Commission Regulation (EU) 2016/1719 should be expanded. Financial transmission rights should be issued by TSOs and allocated through the single allocation platform. The single allocation platform should offer trading of financial long-term transmission rights between the different bidding zones and the regional virtual hubs. The orders submitted by market participants for financial transmission rights shall be matched by a simultaneous allocation of long term cross zonal capacity. Such matching and allocation should be performed on a regularin accordance with Commission Regulation 2016/1719 and on a regular and more frequent basis, to ensure enough liquidity and, hence, efficient hedging possibilities to market participants. The long-term transmission rights should be issued with frequdifferent maturities (ranging from month ahead to at least three years ahead), in order to be aligned with the typical hedging time horizon of market participants. The single allocation platform should be subject to monitoring and enforcement to ensure that it performs its tasks properly.
Amendment 251 #
Proposal for a regulation
Recital 22
Recital 22
(22) Network tariffs should incentivise transmission and distribution system operators to use flexibility services through further developing innovative solutions to optimise the existing grid and to procure flexibility services, in particular demand response or storage. For this purpose, network tariffs should be designed so as to take into account the operational and capital expenditures of system operators or an efficient combination of both so that they can operate the electricity system cost-efficiently. Furthermore, they should be designed to provide the right incentives to system operators by combining a timely recognition of traditional investments in physical networks and adequate returns, with a flexible reflection of operational cost. Any obstacle in national regulation to the necessary efficient investments must be abolished. This would further contribute to integrating renewables at the least cost for the electricity system and enable final customers to value their flexibility solutions.
Amendment 258 #
Proposal for a regulation
Recital 23
Recital 23
(23) Offshore renewable energy sources, such as offshore wind, ocean energy and floating photovoltaic, will play an instrumental role in building a power system largely based on renewables and in ensuring climate neutrality by 2050. There are, however, substantial obstacles to their wider and efficient deployment preventing the massive scale up needed to achieve those objectives. Similar obstacles could arise for other offshore technologies in the future. These obstacles include investment risks associated with the unique topographical situation of offshore hybrid projects connected to more than one market. In order to reduce investment risk for these offshore project developers and t, instruments such as power purchase agreements or contracts for differences may be issued. To ensure that the projects in an offshore bidding zone have full market access to the surrounding markets, transmission system operators should guarantee access of the offshore project to the capacity of the respective hybrid interconnector for all market time units. If the available transmission capacities are reduced to the extent that the full amount of electricity generation that the offshore project would have otherwise been able to export cannot be delivered to the market, and subject to a coordinated decision of the Member States concerned, the transmission system operator or operators responsible for the need to limit the capacity should, in future, be enabled to compensate the offshore project operator commensurately using congestion income. This compensation should only be related to the production capability available to the market, which may be weather dependent and excludes the outage and maintenance operations of the offshore project. If the available transmission capacities are reduced to the extent that the full amount of electricity generation that the offshore project would have otherwise been able to export cannot be delivered to the market, the offshore generator should be compensated for the commensurate revenue loss. To that end the transmission system operator or operators responsible for the need to limit the capacity shall, in future, be enabled to contribute to the compensation of the offshore project operator commensurately using congestion income which is earned additionally on the interconnector due to the capacity restriction. The details, including the conditions under which the measure may expire, are intended to be defined in an implementing Regulation.
Amendment 276 #
Proposal for a regulation
Recital 30
Recital 30
(30) Where Member States decide to support publicly financed new investments (“direct price support schemes”) in low carbon, non-fossil fuel electricity generation to achieve the Union’s decarbonisation objectives, those schemes should be structured by way of two-way contracts for difference such as to include, in addition to a revor equivalent mechanisms achieving the same goals. Such two-way contracts for differenuce guarantee, an upward limitation of the market revenues of the generation assets concernedshall be allocated through a voluntary, competitive, open, transparent, non- discriminatory and cost-effective procedure, in accordance with State Aid Rules, preventing undue distortions to the efficient functioning of the electricity markets. New investments for the generation of electricity should include investments in new power generating facilities, and may also include investments aimed at repowering existing power- generating facilities, investments aime and at extending existing power -generating facilities or at prolongif the increase of power generation capacity is substantial. Market participants should be free to take part ing their lifetime tendering procedures for two-way contracts for differences or other similar arrangements.
Amendment 286 #
Proposal for a regulation
Recital 33
Recital 33
(33) In view of the need to provide regulatory certainty of producers, the obligation for Member States to apply direct price support schemes for the production of electricity in the form of two-way contracts for difference should apply only to those new investments for the generation of electricity from the sources specified in the recital abovewhose contracts are concluded as of one year after the date of entry into force of this Regulation.
Amendment 296 #
Proposal for a regulation
Recital 37
Recital 37
(37) The accelerated deployment of renewables necessitates a growing availability of flexibility solutions to ensure their integration to the grid and to enable the electricity system and grid to adjust to the variability of electricity generation and consumption across different time horizons. Regulatory authorities should periodically assess the need for flexibility in the electricity system based on the input of transmission and distribution system operators. The assessment of the flexibility needs of the electricity system should take into account all existing and planned investments (including existing assets that are not yet connected to the grid) on sources of flexibility such as flexible electricity generation, interconnectors, demand side response, energy storage or the production of renewable fuels, in view of the need to decarbonise the energy system. On this basis, Member States should define a national objective for non-fossil flexibility such as demand side response and storageenergy storage, including vehicle-to-grid technologies, which should also be reflected in their integrated national energy and climate plans.
Amendment 301 #
Proposal for a regulation
Recital 38
Recital 38
(38) To achieve the national objective for non-fossil flexibility such as demand side response and energy storage investment needs, Member States can design or redesign capacity mechanisms in order to create a green and flexible capacity mechanism. Member States that apply a capacity mechanism in line with the existing rules should promote the participation of non-fossil flexibility such as demand side response and energy storage by introducing additional criteria or features in the design. In addition, if Member States do not apply a capacity mechanism or if the additional criteria or features in the design of their capacity mechanism are insufficient to achieve national objective for demand response and energy storage investment needs they could apply flexibility support schemes consisting of payments for the available capacity of flexibility such as demand response and energy storage. The use of fossil-based flexibility shall be considered only if it does not use unabated fossil fuels.
Amendment 313 #
Proposal for a regulation
Recital 40
Recital 40
Amendment 334 #
Proposal for a regulation
Recital 45
Recital 45
(45) When suppliers’ do not ensure that their electricity portfolio is sufficiently hedged changes in wholesale electricity prices can leave them financially at risk and, result in their failure, passing on costs to consumers and other network users. Hence, it should be ensured that Member States perform regular stress test to assess whether suppliers are appropriately hedged when offering fixed price contracts. AIn case hedging opportunities are insufficient, an appropriate hedging strategy should be encouraged and take into account the suppliers' access to its own generation and its capitalisation as well as its exposure to changes in wholesale market prices.
Amendment 352 #
Proposal for a regulation
Recital 53
Recital 53
(53) Public interventions in price setting for the supply of electricity constitute, in principle, a market-distortive measure. Such interventions may therefore only be carried out as public service obligations and are subject to specific conditions. Under this Directive regulated prices are possible for energy poor and vulnerable households, including below costs, and, as a transition measure, for households and micro-enterprises. In times of crisis, when wholesale and retail electricity prices increase significantly, and this is having a negative impact on the wider economy, Member States should be allowed to extend, temporarily, the application of regulated prices also to SMEs. For both households and SMEs, Member States should be temporarily allowed to set regulated prices below costs as long as this does not create distortion between suppliers and suppliers are compensated for the costs of supplying below cost. However, it needs to be ensured that such price regulation is targeted and does not create incentives to increase consumption. Hence, such price regulation should be 100% for vulnerable households, while should be limited to 80% of median household consumption for the other households, and 70% of the previous year’s consumption for SMEs. The Commission should determine when such an electricity price crisis exists and consequently when this possibility becomes applicable. The Commission should also specify the validity of that determination, during which the temporary extension of regulated prices applies, which may be for up to one year. To the extent that any of the measures envisaged by the present Regulation constitute State aid, the provisions concerning such measures are without prejudice to the application of Articles 107 and 108 TFEU. Member States should refrain from implementing uncoordinated extraordinary measures, such as an inframarginal revenue cap, which already demonstrated their inefficiency in the past, especially because it has led to diverse and contrasting implementation across Member States, increasing investors’ uncertainty and jeopardising investments in renewables, and ultimately threatening security of supply and Union decarbonisation targets.
Amendment 367 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point a
Article 1 – paragraph 1 – point 1 – point a
Regulation (EU) 2019/943
Article 1, paragraph b a (new)
Article 1, paragraph b a (new)
(ba) consider the electricity sector as part of integrated energy systems planning and operation of the energy system as a whole, across multiple energy carriers, infrastructures, and consumption sectors, by creating stronger links between them with the objective of delivering affordable, reliable and resource-efficient energy services, at the least possible cost for society
Amendment 383 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 72
Article 2 – point 72
(72) ‘peak hour’ means an hour with the highest electricity consumption combined with a low level of electricity generated from renewable energy sources, taking cross-zonal exchanges into account;
Amendment 394 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 74
Article 2 – point 74
(74) ‘'peak shaving products’ means all market-based products through which market participants can provide peak shaving to the transmission system operatoractions;
Amendment 396 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 Regulation (EU) 2019/943
Article 1 – paragraph 1 – point 2 Regulation (EU) 2019/943
Amendment 398 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 76
Article 2 – point 76
(76) ‘two-way contract for difference’ means a contract signed between a power generating facility operator and a counterpart, usually a public entity, that provides both minimum remuneration protection and a limit to excess remuneration; the contract is designed to preserve incentives for the generating facility to operate and participate efficiently in the electricity markets and complies with the principles set out in Article 4(2) and Article 4(3), first and third subparagraphs, of Directive (EU) 2018/2001;
Amendment 403 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 77
Article 2 – point 77
(77) ‘power purchase agreement’ or ‘PPA’ means a contract under which a natural or legal person agrees to purchase electricity from an electricity producer on a market basicommercial terms;
Amendment 406 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 78
Article 2 – point 78
Amendment 412 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 79
Article 2 – point 79
(79) ‘dedicated metering device’ means a device attachedrelating to or embedded in an asset that sells demand response or flexibility services on the electricity market or to transmission and distribution system operators;
Amendment 417 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/943
Article 2 – point 80a (new)
Article 2 – point 80a (new)
(80a) ‘intraday market operator' means any NEMO, power exchange or other entity which collects bids and offers for intraday products, or products with essentially the same characteristics as intraday products, from market participants before or after the intraday cross-zonal gate closure time.
Amendment 432 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Regulation (EU) 2019/943
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Transmission system operators and NEMOs, or an entity designated by them, shall jointly organise the management of the integrated day-ahead and intraday markets in accordance with Regulation (EU) 2015/1222. Transmission system operators and NEMOs shall cooperate at Union level or, where more appropriate, at a regional level in order to maximise the efficiency and effectiveness of Union electricity day-ahead and intraday trading. The obligation to cooperate shall be without prejudice to the application of Union competition law. In their functions relating to electricity trading, transmission system operators and NEMOs shall be subject to regulatory oversight by the regulatory authorities pursuant to Article 59 of Directive (EU) 2019/944 and ACER pursuant to Articles 4 and 8 of Regulation (EU) 2019/942.
Amendment 449 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2019/943
Article 7a, paragraph 1
Article 7a, paragraph 1
1. Without prejudice to Article 40(5) and 40(6) of the Electricity Directive, transmissionBy 31 December 2024, the Commission, in cooperation with ENTSO for Electricity, the EU DSO Entity and ACER, shall perform an assessment about the possibility for system operators mayto procure peak shaving products in order to achieve a reduction of electricity demand during peak hours, analysing at least, but not limited to, that their activation does not negatively affect the functioning of the electricity market, and in particular the intraday and balancing markets and over-the-counter trading. The assessment shall take into consideration specific national developments at and consider the possibility of procuring these products under normal circumstances and during an electricity price crisis situation, declared in accordance with Article 66a.
Amendment 456 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2019/943
Article 7a, paragraph 2
Article 7a, paragraph 2
Amendment 486 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2019/943
Article 7a, paragraph 3
Article 7a, paragraph 3
Amendment 493 #
Amendment 502 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2019/943
Article 7b, paragraph 1
Article 7b, paragraph 1
1. “Member States shall allow tTransmission system operators and, distribution system operators to, customers and market participants, including independent aggregators, may use data from dedicated metering devices for the observability and settlement of demand response and flexibility services, including from storage systems. The use of those data for research purposes should be allowed.
Amendment 511 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2019/943
Article 7b, paragraph 2
Article 7b, paragraph 2
2. Member States shall establish requirements for a dedicated metering device data validation process to check and ensure the quality and consistency of the respective data. The requirements shall be aligned with the framework on metering device data in the Network Code for demand response and flexibility and with Directive 2014/32/EU.;
Amendment 516 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4 Regulation (EU) 2019/943
Article 1 – paragraph 1 – point 4 Regulation (EU) 2019/943
2a. Where flexibility interventions are planned through the usage of such dedicated metering devices, system operators shall be informed to ensure system stability.
Amendment 518 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2019/943
Article 7b, paragraph 2b new
Article 7b, paragraph 2b new
Amendment 522 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point a
Article 1 – paragraph 1 – point 5 – point a
Regulation (EU) 2019/943
Article 8, paragraph 1
Article 8, paragraph 1
NEMOs shall allow market participants to trade energy as close to real time as possible and at least up to the intraday cross-zonal gate closure time. By 1 January 2028, the intraday cross-zonal gate closure time shall be at the earliest 30 minutes ahead of real time. Within 24 months of the entry into force of this Regulation, all TSOs shall, in cooperation with national regulatory authorities and in consultation with market participants, ACER and NEMOs, undertake an assessment and cost-benefit analysis on the feasibility of an intraday cross-zonal gate closure time set at less than one hour ahead of real time, and shall draw up a report. The assessment shall consider the impacts on the national system security, the cost-efficiency, the benefits to the integration of renewable energies and to the reduction of CO2 emissions.
Amendment 530 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point a
Article 1 – paragraph 1 – point 5 – point a
Regulation (EU) 2019/943
Article 8, paragraph 1a new
Article 8, paragraph 1a new
Within 6 months from the date of the report under paragraph 1, on the basis of the performed assessment and in coordination with all TSOs, ACER may take a decision to shorten the cross-zonal gate closure time, in accordance with Article 6(1) of Regulation 2019/942. Following this decision, the Commission may propose an amendment to the methodology derived from Article 59 of the Commission Regulation 2015/1222.
Amendment 531 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point a
Article 1 – paragraph 1 – point 5 – point a
During the day-ahead and intraday market timeframe, each NEMOs shall submit all orders for day-ahead and intraday products received from market participants to single dayahead and intraday coupling and shall not organise themselves, or through an entity affiliated or associated with them, the trading with day-ahead and intraday products, or products with similar characteristics, outside the single dayahead and intraday coupling.
Amendment 538 #
By 1 December 2024, the ENTSO for Electricity shall submit to ACER a report about the possible implementation of practical solutions addressing market participants’ hedging needs. The report shall assess at least, but not limited to, the frequency of the auctions, the maturities of the products, the development of secondary markets, the obligations concerning financial transmission rights, the process on cost-recovery to handle any financial risks and potential losses, the timeline for implementation, the appropriateness of regional coordination and decision-making for alternative measures, including the possible establishment of regional virtual hubs.
Amendment 546 #
1. By 1 December 2024 the ENTSO for Electricity shall submit to ACER, after having consulted ESMA, a proposal for the establishment of regional virtual hubs for the forward market. The proposal shallWithin 24 months after [the entry into force of this Regulation] the Commission shall perform a study about the possible establishment of regional virtual hubs for the forward markets, and shall present it to European Parliament and Council, and where appropriate revise the Commission Regulation (EU) 2016/1719 in accordance with Article 59, that establishes the design referred to in paragraph 1. This study shall in particular assess:
Amendment 550 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 1, point a
Article 9, paragraph 1, point a
(a) define the geographical scope of the regional virtual hubs for the forward market, including the bidding zones constituting these hubs, and specific situations of bidding zones belonging to more than one virtual hub, aiming to maximise the price correlation between the reference prices and the prices of the bidding zones constituting regional virtual hubs;
Amendment 551 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 1, point aa new
Article 9, paragraph 1, point aa new
(aa) the impact of regional virtual hubs on the forward markets, the transmission system operators, the market participants and end-consumers and the potential benefits and drawbacks that regional virtual hubs would bring compared to the existing zonal model;
Amendment 553 #
(b) include a methodology for the calculation of the reference prices for the regional virtual hubs for the forward market, and the underlying methodology, aiming to maximise the correlations between the reference price and the prices of the bidding zones constituting a regional virtual hub; such methodology shall be applicable to all virtual hubs and based on predefined objective criteria ;
Amendment 556 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 1, point c
Article 9, paragraph 1, point c
(c) include a definition of financial long-term transmission rights from bidding zones to the regional virtual hubs for the forward market and the need to offer trading of long-term transmission rights between each bidding zone and the regional virtual hub;
Amendment 557 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 Regulation (EU) 2019/943
Article 1 – paragraph 1 – point 6 Regulation (EU) 2019/943
(d) the maximiseation of the trading opportunities for hedging products referencing the virtual hubs for the forward market as well as for long term transmission rights from bidding zones to regional virtual hubs .
Amendment 562 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 2
Article 9, paragraph 2
Amendment 571 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 3
Article 9, paragraph 3
3. The entity operating the single allocation platform established in accordance with Regulation (EU) 2016/1719 shall have a legal form as referred to in Annex II to Directive (EU) 2017/1132 of the European Parliament and of the Council.
Amendment 574 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 4
Article 9, paragraph 4
4. The single allocation platform shall: , on behalf of the transmission system operators, shall issue long-term transmission rights or have equivalent measures in place to allow for market participants to hedge price risks across bidding zone borders, unless an assessment of the forward market on the bidding zone borders performed by the competent regulatory authorities shows that there are sufficient hedging opportunities in the concerned bidding zones. Long-term transmission rights shall be allocated on a regular basis, in a transparent, market based and non- discriminatory manner and shall have a range of maturities of up to at least three years ahead. The frequency of allocation of the long-term cross-zonal capacity shall support the efficient functioning of the forward market. All TSOs should develop an approach that is aiming to increase the volume of cross-zonal capacities in forward markets and liquidity.
Amendment 582 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/943
Article 9, paragraph 5
Article 9, paragraph 5
5. Where a regulatory authoritythe study referred to in paragraph -1a considers that there are insufficient hedging opportunities available for market participants, and after consultation of relevant financial market competent authorities in case the forward markets concern financial instruments as defined under Article 4(1)(15), itnational regulatory authorities may require power exchanges or transmission system operators to implement market-based tendering processes for the establishment of additional measures, such as market- making activities, to improve the liquidity of the forward market. Subject to compliance with Union competition law and with Directive (EU) 2014/65 and Regulations (EU) 648/2012 and 600/2014, market operators shall be free to develop forward hedging products, including long- term forward hedging products, to provide market participants, including owners of power-generating facilities using renewable energy sources, with appropriate possibilities for hedging financial risks against price fluctuations. Member States shall not require that such hedging activity may be limited to trades within a Member State or bidding zone.
Amendment 593 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point a
Article 1 – paragraph 1 – point 7 – point a
Regulation (EU) 2019/943
Article 18, paragraph 2
Article 18, paragraph 2
2. Tariff methodologies shall reflect the fixed costs of transmission system operators and distribution system operators and shall consider both capital and operational expenditure to provide appropriate incentives to transmission system operators and distribution system operators over both the short and long run, including anticipatory investments, in order to increasevest in network infrastructure reinforcement to facilitate the energy transition and in the additional physical and digital network elements needed to reach the objectives set out in the national energy and climate plans, while at the same time increase overall system efficiencies, including energy efficiency, to foster market integration and security of supply, to support the use of flexibility services, efficient investments, including solutions to optimise the existing grid and facilitate flexibility services and demand response and related research activities, and to facilitate innovation in the interest of consumers in areas such as digitalisation, flexibility services and interconnection;.
Amendment 598 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) 2019/943
Article 18, paragraph 8
Article 18, paragraph 8
8. Transmission and distribution tariff methodologies shall provide incentives to transmission and distribution system operators for the most cost-efficient operation and development of their networks including through the procurement of services. For that purpose, regulatory authorities shall recognise relevant costs as eligible, shall include those costs in transmission and distribution tariffs, and shallwhere applicable, may introduce performance targets in order to provide incentives to transmission and distribution system operators to increase efficienciesoverall system efficiency, quality and security of supply in their networks, including through energy efficiency, the use of flexibility and demand response services and the development of smart grids and intelligent metering systems. , in accordance with the features of the given electricity system and climate policy objectives
Amendment 602 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point d
Article 1 – paragraph 1 – point 7 – point d
Regulation (EU) 2019/943
Article 18, paragraph 9, point i
Article 18, paragraph 9, point i
(i) incentives for efficient investments in networks, including on flexibilityle resources and flexible connection agreements.
Amendment 611 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point b
Article 1 – paragraph 1 – point 8 – point b
Regulation (EU) 2019/943
Article 19, paragraph 2, point c
Article 19, paragraph 2, point c
(c) compensating offshore generation plant operators in an offshore bidding zone if access to interconnected markets has been reduced in such a way that one or more transmission system operators have not madefollowing a coordinated decision taken by the Member States involved, on the implementation of offshore bidding zones and on the design of the support mechanism, contributing to the compensation to offshore renewable generators in an offshore bidding zone in the event of not enough capacity available on the interconnector or thein critical network elements affecting the capacity of the interconnector, resulting in the offshore plant operator not being able to export its electricity generation capability to the market. leading to the simultaneous loss of revenue of the offshore renewable generator and a higher revenue on the interconnector. Only the higher interconnector revenue shall be used for the compensation of offshore renewable generators. On an annual basis, this compensation shall not exceed the total congestion income generated on interconnectors between the concerned offshore bidding zone and neighbouring bidding zones. By 31 December 2024, the Commission shall amend Commission Regulation (EU) 2015/1222 in accordance with Article 59 as regards the implementation details of this compensation, including the conditions under which the measure may expire.
Amendment 621 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19a, paragraph 1
Article 19a, paragraph 1
1. Member States shall facilitate power purchase agreements (‘PPAs’)lift all unjustified barriers to the conclusion of power purchase agreements (‘PPAs’), including for the retail market (e.g. households, renewable energy communities, SMEs), with a view to reaching the objectives set out in their integrated national energy and climate plan with respect to the dimension decarbonisation referred to in point (a) of Article 4 of Regulation (EU) 2018/1999, while preserving competitive and liquid electricity markets. In order to ensure the removal of barriers to PPAs, the Commission may draw up specific guidance on how to alleviate administrative obligations and accounting complexities related to PPAs.
Amendment 630 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19a, paragraph 1a new
Article 19a, paragraph 1a new
1a. To facilitate the conclusion of PPAs, Member States shall ensure that all possibilities offered under Article 19 of Directive EU 2018/2001 regarding guarantees of origin are used. It shall be ensured that guarantees of origin are issued to all producers of energy from renewable sources, even those that receive financial support from a Member State support scheme, to enable renewable power to be tracked and traded across borders and to remove this existing barrier to long term PPAs.
Amendment 638 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19a, paragraph 2
Article 19a, paragraph 2
2. Member States shall ensure that instruments such as guarantee schemes at market prices,, in a coordinated way and where appropriate with the support of the European Investment Bank (‘EIB’), may put in place instruments to reduce the financial risks associated to off- taker payment default in the framework of PPAs are in place andnd make them accessible to customers that face entry barriers to the PPA market and are not in financial difficulty in line with Articles 107 and 108 TFEU. Such instruments may include guarantee schemes at market prices. For this purpose, Member States shall take into account Union-level instruments and tools such as standardised template contracts, to be developed jointly with the EIB. Member States shall determine what categories of customers are targeted by these instruments, applying non- discriminatory criteria, and considering at least, but not limited to, SMEs, households, including via aggregators, renewable energy communities and suppliers with no generation assets. As the market evolves and the PPA uptake increases, the use of instruments such as guarantee schemes at market prices shall be reassessed.
Amendment 887 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 c – paragraph 7 b (new)
Article 19 c – paragraph 7 b (new)
7b. By 1 December 2024, ACER, in consultation with ENTSO for electricity and EU DSO Entity, shall identify the system data requirements that will support the amount of demand response identified by the flexibility needs assessments. Such system data requirements shall include a timetable for the digitalisation of the power network.
Amendment 889 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 d – Title
Article 19 d – Title
Amendment 897 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 d – paragraph 1
Article 19 d – paragraph 1
Based on the report of the regulatory authority pursuant to Article 19c(1), each Member State shall define an indicative national objective for demand side response and storageapply concrete measures to reduce barriers for the participation of flexibility such as demand response and energy storage in the market. In addition, each Member State may define an indicative national objective for flexibility, including separate roadmaps for demand response and energy storage, taking into account ACER’s recommendations referred to in Article 19c(7). This indicative national objective shall also be reflected in Member States’ integrated national energy and climate plans as regards the dimension ‘Internal Energy Market’ in accordance with Articles 3, 4 and 7 of Regulation (EU) 2018/1999 and in their integrated biennial progress reports in accordance with Article 17 of Regulation (EU) 2018/1999, as well as in the European resource adequacy assessments in accordance with Article 23 (3) of Regulation (EU) 2019/943, and compatibility of methodology with the TYNDP and the DSOs network development plans shall be ensured.
Amendment 924 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 e – paragraph 1
Article 19 e – paragraph 1
1. Member States which apply a capacity mechanism in accordance with Article 21 shall consider the promotion of the participation of non-fossil flexibility such as demand side response and energy storage by introducing additional criteria or features in the design of the capacity mechanism.
Amendment 940 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 e – paragraph 2
Article 19 e – paragraph 2
2. Where the measures introduced in accordance with paragraph 1 to promote the participation of non-fossil flexibility such as demand response and energy storage in capacity mechanisms are insufficient to achieve the flexibility needs identified in accordance with 19d, Member States may apply flexibility support schemes consisting of payments for the available capacity of non-fossil flexibility such as demand side response and energy storage.
Amendment 952 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 e – paragraph 3
Article 19 e – paragraph 3
3. Member States which do not apply a capacity mechanism may apply flexibility support schemes consisting of payments for the available capacity of non-fossil flexibility such as demand side response and energy storage.
Amendment 965 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 f – paragraph 1
Article 19 f – paragraph 1
Flexibility support scheme for non-fossil flexibility such as demand response and energy storage applied by Member States in accordance with Article 19e(2) and (3) shall:
Amendment 975 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 f – paragraph 1 – point b
Article 19 f – paragraph 1 – point b
(b) be limited to new investments in non-fossil flexibility not using unabated fossil fuels such as demand side response and energy storage;
Amendment 996 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/943
Article 19 f – paragraph 1 – point i
Article 19 f – paragraph 1 – point i
(i) where technically feasible, be open to cross-border participation.’;
Amendment 1012 #
Transmission system operators shall publish in a clear and transparent manner, information on the capacity available for new connections in their respective areas of operation, including the detailed criteria used to calculate such available capacity such as curtailment assumptions, topological and electrical characteristics of the grid, demand, generation and in congested areas if flexible energy storage connections can be accommodated, and update that information regularly, at least quarterly.
Amendment 1025 #
Proposal for a regulation
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Regulation (EU) 2019/943
Article 59 – paragraph 1 – point b
Article 59 – paragraph 1 – point b
(b) , capacity-allocation and congestion- management rules pursuant to Article 6 of Directive (EU) 2019/944 and Articles 7 to 10, 13 to 17, 19 and 35 to 37 of this Regulation, including rules on day- ahead, intraday and forward capacity calculation methodologies and processes, grid models, bidding zone configuration, redispatching and countertrading, trading algorithms, single day-ahead and intraday coupling including the possibility of being operated by a single entity, the firmness of allocated cross-zonal capacity, congestion income distribution, the allocation of financial long-term transmission rights by the single allocation platform, cross-zonal transmission risk hedging, nomination procedures, and capacity allocation and congestion management cost recovery;;
Amendment 1049 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 – point a
Article 2 – paragraph 1 – point 1 – point a
Directive (EU) 2019/944
Article 2 – point 49
Article 2 – point 49
(49) 'non-frequency ancillary service' means a service used by a transmission system operator or distribution system operator for steady state voltage control, fast reactive current injections, inertia for local grid stability, short-circuit current, black start capability, island operation capability and peak shaving;”
Amendment 1078 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
Directive (EU) 2019/944
Article 4 – paragraph 1
Article 4 – paragraph 1
Member States shall ensure that all customers are free to purchase electricity from the supplier of their choice. Member States shall ensure that all customers are free to have more than one electricity supply contract or an energy sharing agreement at the same time, and that for this purpose customers are entitled to have more than one metering and billing point covered by the single connection point for their premises.
Amendment 1090 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point b
Article 2 – paragraph 1 – point 3 – point b
Directive (EU) 2019/944
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Member States shall ensure that the national regulatory framework enables suppliers to offer fixed-term, fixed-price contracts and dynamic electricity price contracts. Member States shall ensure that final customers who have a smart meter installed can request to conclude a dynamic electricity price contract and that all final customers can request to conclude a fixed-term, fixed-price electricity price contract of a duration of at least one year, with at least one supplier and with every supplier that has more than 200 000 final customers.
Amendment 1097 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point b
Article 2 – paragraph 1 – point 3 – point b
Directive (EU) 2019/944
Article 11 – paragraph 1 a (new)
Article 11 – paragraph 1 a (new)
1a. All final customers can request to conclude a fixed-term, fixed-price electricity price contract of a duration of at least one year, with at least one supplier and with every supplier that has more than 200 000 final customers.
Amendment 1098 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point b
Article 2 – paragraph 1 – point 3 – point b
Directive (EU) 2019/944
Article 11 – paragraph 1 b (new)
Article 11 – paragraph 1 b (new)
1b. The development of fixed-term, fixed-price contracts should not exclude or otherwise undermine the possibility of consumers to participate in demand response and energy sharing and actively contribute to the achievement of the national system flexibility needs.
Amendment 1119 #
Proposal for a regulation
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Directive (EU) 2019/944
Article 15 a – paragraph 1
Article 15 a – paragraph 1
1. All households, small and medium sized enterprises and public bodiecustomers have the right to participate in energy sharing as active customers.