Electricity
Market integration
-
Secretariat’s actions
-
Supporting
- Harmonisation of the legal framework with the EU:
- supports the adaptation of the EU electricity market acquis under the Energy Community framework;
- supports Contracting Parties in transposing the Electricity Integration Package through drafting, amending and reviewing relevant draft legal acts and provisions;
- provides guidance and interpretations of the provisions of the Electricity Integration Package;
- supports harmonisation of value-added tax (VAT) regulations and other legislative provisions which are essential for the efficient operation of the integrated electricity markets.
- Verification of the transposition compliance:
- as part of the agreed verification process, assesses the compliance of the transposition of the Electricity Integration Package for the specific purpose of market coupling and provides its assessment to the European Commission.
- Implementation:
- supports Contracting Parties and relevant energy sector stakeholders in implementing the Electricity Integration Package;
- facilitates regional cooperation and accelerated electricity market integration of the Contracting Parties’ markets into the EU internal market for electricity, including through co-chairing of the Pentalateral Coordination Group Joint Expert Team for Energy Community (PCG JET EnC);
- facilitates the establishment of cooperation between TSOs and NEMOs within the Local Implementation Projects for market coupling and supports them in ensuring local readiness for market coupling.
- Harmonisation of the legal framework with the EU:
-
Monitoring
- monitors and reports on the proper transposition and implementation of the Electricity Integration Package in line with its legal obligations stemming from the Treaty;
- coordinates with ACER on monitoring the implementation of the Contracting Party’s electricity market integration into single day-ahead and intraday coupling.
-
Supporting
-
Timeline and tasks
Timeline
For a complete and detailed overview by each EIP act, please refer to the respective roadmap.
-
Tasks
The following table provides an overview of responsibilities related to the day-ahead and intraday markets integration.
Authority Responsibilities Contracting
Party- ensuring the transposition of the Electricity Integration Package into the national legal framework and its implementation;
- ensuring that at least one Nominated Electricity Market Operator (NEMO) is designated in each bidding zone on its territory;
- if applicable, informing the Secretariat about the existence of a national legal monopoly for day-ahead and intraday trading services, etc.
National
Regulatory
Authority
(NRA)- designating NEMO and monitoring the compliance of NEMO with the designation criteria, or, if NRA is not the designating authority, giving an opinion on the extent to which the applicant for NEMO designation meets the designation criteria;
- in the case of national legal monopoly, fixing or approving NEMO fees or the methodology used for the calculation of NEMO fees;
- approving regional and national terms and conditions or methodologies (TCMs) and requesting proposals for amendment to TCMs;
- if TSOs or NEMOs fail to submit an initial or amended proposal for TCMs within the deadlines prescribed, taking appropriate steps for the adoption of the required TCMs;
- assessing the TSO’s costs resulting from performing obligations set out in the Commission Regulation (EU) 2015/1222 and ensuring recovery of costs that are assessed as reasonable, efficient and proportionate;
- if applicable, approving proposal for cost contribution of TSO to NEMO;
- if no agreement is reached, deciding on the shipping arrangement together with the regulatory authority concerned for the bidding zones between which the clearing and settlement of the exchange of energy is needed, etc.
Nominated Electricity Market
Operator (NEMO)- together with NEMOs from Member States and other NEMOs from Contracting Parties, submitting a plan on the integration of NEMOs from Contracting Parties in the MCO functions and in the agreements between NEMOs and with third parties (Market Coupling Operator Integration Plan – MCO IP);
- applying the pan-European TCMs adopted at EU level;
- implementing the market coupling operator (MCO) functions in coordination with other NEMOs in accordance with EnC CACM Regulation;
- applying the requirements for the single day-ahead and intraday coupling, requirements for MCO functions and the price coupling algorithm with respect to all matters related to electricity market functioning in accordance with EnC CACM Regulation;
- applying maximum and minimum prices;
- making anonymous and sharing the received order information necessary to perform the MCO functions;
- assessing the results calculated by the MCO functions, allocating the orders based on these results, validating the results as final if they are considered correct and taking responsibility for them;
- informing the market participants on the results of their orders;
- acting as central counter parties for clearing and settlement of the exchange of energy resulting from single day-ahead and intraday coupling;
- implementing jointly with relevant NEMOs and TSOs back-up procedures for national or regional market operation if no results are available from the MCO functions, taking account of fallback procedures provided;
- jointly providing single day-ahead and intraday coupling cost forecasts and cost information to competent regulatory authorities and TSOs where NEMO costs for establishing, amending and operating single day-ahead and intraday coupling are to be covered by the concerned TSO’s contribution;
- where applicable, coordinate with TSOs to establish arrangements concerning more than one NEMO within a bidding zone and perform single day-ahead and/or intraday coupling in line with the approved arrangements, etc.
Transmission System Operator
(TSO)- developing regional and national TCMs;
- applying the pan-European TCMs adopted at EU level;
- jointly applying TSO requirements for the price coupling and continuous trading matching algorithms for all aspects related to capacity allocation;
- establishing and participating in the capacity calculation process by providing input data and validating cross-zonal capacity results;
- where necessary, establishing cross-zonal capacity allocation and other arrangements;
- verifying single day-ahead coupling results in terms of validated cross-zonal capacities and allocation constraints;
- where required, establishing scheduled exchange calculators for calculating and publishing scheduled exchanges on borders between bidding zones;
- respecting the results from single day-ahead and intraday coupling;
- establishing and operating fallback procedures as appropriate for capacity allocation;
- applying the intraday cross-zonal gate opening and intraday cross-zonal gate closure times;
- sharing congestion income in line with pan-EU TCM;
- where so agreed, acting as shipping agents transferring net positions, ect.
Regional Coordination Centres
- performing the coordinated calculation of cross-zonal capacities;
- submitting the calculated cross-zonal capacities to TSOs for validation;
- reporting all reductions made during the validation of cross-zonal capacity to all regulatory authorities of CCR;
- providing the validated cross-zonal capacities and allocation constraints to NEMOs,
- issuing coordinated actions to the transmission system operator, etc.
EU Agency for Cooperation of Energy Regulators (ACER)
- approving pan-European TCMs;
- approving the regional TCMs, in case of referral, to the extent Member States are affected;
- issuing an opinion on regional or national TCMs, upon request of the relevant regulatory authority;
- requesting a proposal for an amendment of TCMs, where it is responsible for the adoption of such TCMs;
- monitoring the implementation of the Contracting Party integration into single day-ahead and intraday coupling, in coordination with the Secretariat;
- to the extent Member States are affected, assessing the efficiency of the current bidding zone configuration every three years, etc.
Energy Community Regulatory Board
(ECRB)- approving the regional TCMs in case of referral, if only Contracting Parties are concerned;
- issuing an opinion on regional or national TCMs, upon request of the relevant regulatory authority;
- requesting a proposal for an amendment of TCMs, where it is responsible for the adoption of such TCMs;
- assessing the efficiency of the current bidding zone configuration every three years;
- if Contracting Parties fail to reach a unanimous decision, adopting a decision whether to amend or maintain the bidding zone configuration in and between those Contracting Parties, etc.
Energy Community Secretariat
- monitoring and reporting on the implementation of the Electricity Integration Package,
- coordinating with ACER on monitoring the implementation of the Contracting Party integration into single day-ahead and intraday coupling.
-
Tasks
-
Legal basis and purpose
Legal basis and purpose
An important milestone for enabling the full integration of the Energy Community's Contracting Parties' electricity markets into the single European electricity market was achieved in 2022, with the adoption of Decision 2022/03/MC-EnC by the Ministerial Council of the Energy Community. This decision, together with Decision 2021/13/MC-EnC, incorporated nine adapted pieces of the European Union’s electricity acquis—also known as the Electricity Integration Package (EIP)—into the Energy Community legal framework.
Underpinned by the Procedural Act on Regional Market Integration, EIP lays down the legal basis for the Contracting Parties’ adherence to Single Day-Ahead Coupling (SDAC) and Single Intraday Coupling (SIDC), as well as European balancing platforms, contingent upon its compliant transposition. In addition, the EIP promotes harmonised forward capacity allocation by providing the framework for the establishment of regional allocation platforms and for the use of the single allocation platform. The EIP's ultimate aim is to make the markets fit to deliver cost-efficient clean energy transition while ensuring a secure and affordable electricity supply to the citizens.
With the adoption of the package, the Contracting Parties obliged themselves to bring into force laws, regulations and administrative provisions necessary to comply with the EIP by 31 December 2023. The EIP encompasses the adapted versions of:- four legal acts from the EU Clean Energy for all Europeans package;
- five network codes and guidelines that establish detailed rules related to different market segments and system operation:
Energy Community Electricity Integration Package (EIP) Clean Energy for all Europeans package Network Codes and Guidelines Electricity Directive (EU) 2019/944 Forward Capacity Allocation Guideline (FCA) Electricity Regulation (EU) 2019/943 Capacity Allocation and Congestion Management Guideline (CACM); Risk-preparedness Regulation (EU) 2019/941 Electricity Balancing Guideline (EB GL) ACER Regulation (EU) 2019/942 System Operation Guideline (SOGL) Network Code on Emergency and Restoration (ER NC)
KEY OUTPUT
Electricity Integration Package: Transposition and Verification
The Energy Community Secretariat maintains detailed tracking tables on the transposition status of the Electricity Integration Package, act by act for each Contracting Party, providing up-to-date insights into progress across all parties. It also tracks the status of verification of transposition compliance.
Implementation: deliverables and state of play
Key initial deliverables include the list of designated Nominated Electricity Market Operators, the current status of forward capacity allocation at bidding zone borders, and day-ahead and intraday capacity allocation at bidding zone borders. The Energy Community Secretariat tracks and regularly updates the status of implementation across Contracting Parties.