[ParlTrack]

Morten PETERSEN, Claudia GAMON, Emma WIESNER, Susana SOLÍS PÉREZ, Klemen GROŠELJ, Ivars IJABS

Proposal for a regulation
Recital 6

(6) A well-integrated market which builds on the Clean Energy for all Europeans Package adopted in 2018 and 201926 should allow the Union to reap the economic benefits of a single energy market in normal market circumstances, ensuring security of supply and sustaining the decarbonisation process. Cross-border interconnectivity also ensures safer, more reliable and efficient operation of the power system. To this end, the Commission should consider how to improve monitoring and enforcement of the 2019 Electricity Market Regulations, including the obligation to make 70% of interconnector capacity available for cross-border trade. Furthermore, the Commission should consider to increase the 70% obligation, and limit possible derogations, to make the electricity market fit for an energy system primarily based on renewable energy, which merits a need for better interconnection to sustain a high security of supply. _________________ 26 Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, OJ L 328, 21.12.2018, p. 1; Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast), OJ L 328, 21.12.2018, p. 82; Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency, OJ L 328, 21.12.2018, p. 210; Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast), OJ L 158, 14.6.2019, p. 22; Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast), OJ L 158, 14.6.2019, p. 54; Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity (recast), OJ L 158, 14.6.2019, p. 125.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Ivars IJABS

Proposal for a regulation
Recital 16

(16) To ensure the efficient integration of electricity generated from variable renewable energy sources and to reduce the need for fossil-fuel based electricity generation in times when there is high demand for electricity combined with low levels of electricity generation from variable renewable energy sources, it should be possible for transmission system operators to design a peak shaving product enabling demand response to contribute to decreasing peaks of consumption in the electricity system at specific hours of the day. The peak shaving product should contribute to maximize the integration of electricity produced from renewable sources into the system by shifting the electricity consumption to moments of the day with higher renewable electricity generation. As the peak shaving product aims to reduce and shift the electricity consumption, the scope of this product should be limited to demand side response. The procurement of the peak shaving product should take place in such a way that it does not overlap with the activation of balancing products which aim at maintaining the frequency of the electricity system stable. In order to verify volumes of activated demand reduction, the transmission system operator should use a baseline reflecting the expected electricity consumption without the activation of the peak shaving product.deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
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, i~~Consumers shall also have the right to receive a dedicated metering device so that they can engage with their flexible loads in demand response, independently from being already equipped with a smart metering system. In a number of Member States the roll-out of smart metering systems is still slow. 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.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Emma WIESNER, Susana SOLÍS PÉREZ, Klemen GROŠELJ, Ivars IJABS

Proposal for a regulation
Recital 22 a (new)

(22a) Network tariff structures must be designed in a way that guarantees that the economic regulation of grid operators is dependable, stable and with sufficient economic return (WACC) that ensures enough investments and sector investability. Any provisions in the existing national regulatory regimes in the tariff design that hamper the necessary network expansion and digitalization must be removed.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ

Proposal for a regulation
Recital 26

(26) To reach the Union’s decarbonisation targets and the objectives set out in REPowerEU to become more energy independent, the Union needs to accelerate the deployment of renewables at a much faster pace. In view of the investment needs required to achieve these goals, the market should ensure that a long- term price signal is established. The benefit of renewables and flexibility from consumers can be harvested only to the extent the grid deployment keeps up with more anticipatory and least regret investments. All obstacles to the necessary and efficient growth of the infrastructure that might be existing in the national regulatory regimes today must be abolished.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Claudia GAMON, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Recital 27

(27) In this framework, Member States should strive to create the right market conditions for long-term market-based instruments, such as power purchase agreements (‘PPAs’). PPAs are bilateral purchase agreements between producers and buyers of electricity. They provide long-term price stability for the customer and the necessary certainty for the producer to take the investment decision. Nevertheless, only a handful of Member States have active PPA markets and buyers are typically limited to large companies, not least because PPAs face a set of barriers, in particular the difficulty to cover the risk of payment default from the buyer in these long-term agreements. Member States should take into consideration the need to create a dynamic PPA market when setting the policies to achieve the energy decarbonisation objectives set out in their integrated national energy and climate plans. Regulatory unpredictability, instability and retroactivity would undermine the ability of PPAs to contribute to the clean energy transition and energy independence.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Recital 28

(28) According to Article 15(8) of Directive (EU) 2018/2001 of the European Parliament and of the Council, Member States are to assess the regulatory and administrative barriers to long-term renewables PPAs, and shall remove unjustified barriers to, and promote the uptake of, such agreements. In addition, Member States are to describe policies and measures facilitating the uptake of renewables PPAs in their integrated national energy and climate plans. Without prejudice to that obligation to report on the regulatory context affecting the PPA market, Member States ~~should~~may ensure that instruments to reduce the financial risks associated to the buyer defaulting on its long-term payment obligations in the framework of PPAs are accessible to companies that face entry barriers to the PPA market and are not in financial difficulty in line with Articles 107 and 108 TFEU. Member States could decide to set up a guarantee scheme at market prices. Alternatively, Member States may put in place such instruments to make hedging products in the forward market accessible to customers that face entry barriers to the forward market. Member States should include provisions to avoid lowering the liquidity in the electricity markets, in particular the forward market, such as by using financial PPAs. Member States should not provide support to PPAs that purchase generation from fossil fuels. While the default approach should be non- discrimination between consumers, Member States could decide to target these instruments to specific categories of consumers, applying objective and non- discriminatory criteria. In this framework, Member States should take into account the potential role of instruments provided at Union level, for instance by the European Investment Bank (‘EIB’).

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Nicola DANTI, Ivars IJABS

Proposal for a regulation
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, or other similar arrangements, such as to include, in addition to a revenue guarantee, an upward limitation of the market revenues of the generation assets concerned. Such schemes shall 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 electricity markets. New investments for the generation of electricity should include investments in new power generating facilities, investments aimed at repowering existing power generating facilities, investments aimed at extending existing power generating facilities or at prolonging their lifetime.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS, Mauri PEKKARINEN

Proposal for a regulation
Recital 35

(35) Furthermore, Member States should ensure that the direct price support schemes, irrespective of their form, do not undermine the efficient, competitive and liquid functioning of the electricity markets, preserving the incentives of producers to react to market signals, including stop generating when electricity prices are below their operational costs, and of final customers to reduce consumption when electricity prices are high. Member States should ensure that support schemes do not hamper forward market liquidity and retail competition, as well as constitute a barrier for the development of commercial contracts such as PPAs.

2023/05/25
Committee: ITRE

Susana SOLÍS PÉREZ, Claudia GAMON

(37a) Member States shall take into account the double role (generator- consumer) of energy storage when defining the applicable regulatory framework and procedures, in particular when implementing the Union legislation concerning the electricity market, in order to remove existing barriers. This includes preventing double taxation and facilitating permit-granting procedures. National regulatory authorities shall also consider such a role when establishing network charges and tariff schemes, in compliance with Union legislation.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Recital 44

(44) Consumers should have access to a wide range of offers so that they can choose a contract according to their needs. However, suppliers have reduced their offers, fixed-price contracts have become scarce, and the choice of offers has become limited. Consumers should always have the possibility to opt for a~~n afford~~ reasonable fixed price and fixed term contract to ensure a stable price over a given period and suppliers should not unilaterally modify the terms and conditions before such contract expires.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Claudia GAMON, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Recital 46

(46) Consumers should be able to choose the supplier which offers them the price and service which best suits their needs. Advances in metering and sub- metering technology combined with information and communication technology mean that it is now technically possible to have multiple suppliers for a single premises. Consumers should be entitled to request additional meters for this purpose, while bearing the associated costs for their installation or, where applicable, upgrade, under fair, reasonable and cost-effective conditions. If they so wish, customers should be able to use these possibilities to choose a separate supplier notably for electricity to power appliances such as heat pumps or electric vehicles which have a particularly high consumption or which also have the capability to shift their electricity consumption automatically in response to price signals. Moreover, with fast- responding dedicated metering devices which are attached to or embedded in appliances with flexible, controllable loads, final customers can participate in other incentive-based demand response schemes that provide flexibility services on the electricity market and to transmission and distribution system operators. Overall, such arrangements should contribute to the increased uptake of demand response and to consumer empowerment allowing them to have more control over their energy use and bills, while providing to the electricity system additional flexibility in order to cope with demand and supply fluctuations.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
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;~~deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

~~(73) ‘peak shaving’ means the ability of market participants to reduce electricity consumption at peak hours determined by the transmission system operator;~~deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 74

~~(74) ‘peak shaving product’ means a market-based product through which market participants can provide peak shaving to the transmission system operators;~~deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Emma WIESNER, Ivars IJABS

(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 basis~~;

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 80

(80) ‘flexibility’ means the ability of ~~an electricity system to adjust to the variability of~~the interconnected system to manage with all its connected resources the variability and uncertaintly of electricity generation and consumption patterns ~~and grid availability,~~ across relevant ~~market~~ timeframes.;

2023/05/25
Committee: ITRE

Susana SOLÍS PÉREZ, Claudia GAMON

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 80a (new)

(80a) "flexible connection": This is a connection mode whereby the flexible installation connected to a grid point or area may make use of the access capacity not used at any time by the electricity generation installations and by demand, if any. Any installation may make use of this flexible connection until the installed capacity with flexible connection equals the maximum capacity of the grid point or grid area.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 80a (new)

(80a) ‘power control system (PCS)’ means systems or devices, such as electric energy management systems, smart inverters or hybrid inverters for storage and V2X, which electronically limit or control the steady state AC currents, DC currents or AC power at a reference point to a programmable limit or level;

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 80d (new)

(80d) ‘distributed energy resource system’ means distributed renewable generation resources, including energy storage.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7a

~~Article 7a~~deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7a

~~Peak shaving product~~deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7a, paragraph 1

1. Without prejudice to Article 40(5) and 40(6) of the Electricity Directive, transmission system operators may procure peak shaving products in order to achieve a reduction of electricity demand during peak hours.deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4 Regulation (EU) 2019/943

2. Transmission system operators seeking to procure a peak shaving product shall submit a proposal setting out the dimensioning and conditions for the procurement of the peak shaving product to the regulatory authority of the Member State concerned. The proposal of the transmission system operator shall comply with the following requirements: (a) the dimensioning of the peak shaving product shall be based on an analysis of the need for an additional service to ensure security of supply. The analysis shall take into account a reliability standard or objective and transparent grid stability criteria approved by the regulatory authority. The dimensioning shall take into account the forecast of demand, the forecast of electricity generated from renewable energy sources and the forecast of other sources of flexibility in the system. The dimensioning of the peak shaving product shall be limited to ensure that the expected benefits of the product do not exceed the forecasted costs; (b) the procurement of a peak shaving product shall be based on objective, transparent, non-discriminatory criteria and be limited to demand response; (c) the procurement of the peak shaving product shall take place using a competitive bidding process, with selection based on the lowest cost of meeting pre- defined technical and environmental criteria; (d) contracts for a peak shaving product shall not be concluded more than two days before its activation and the contracting period shall be no longer than one day; (e) the activation of the peak shaving product shall not reduce cross-zonal capacity; (f) the activation of the peak shaving product shall take place after the closure of the day-ahead market and before the start of the balancing market; (g) the peak shaving product shall not imply starting generation located behind the metering point.deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7a, paragraph 3

3. The actual reduction of consumption resulting from the activation of a peak shaving product shall be measured against a baseline, reflecting the expected electricity consumption without the activation of the peak shaving product. Transmission system operators shall develop a baseline methodology in consultation with market participants and submit it to the regulatory authority.deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Andreas GLÜCK, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4 Regulation (EU) 2019/943

4. Regulatory authorities shall approve the proposal of the transmission system operators seeking to procure a peak shaving product and the baseline methodology submitted in accordance with paragraphs 2 and 3 or shall request the transmission system operators to amend the proposal where it does not meet the requirements set out in these paragraphs.deleted

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7b, paragraph 2

2. Member States shall establish uniform fit-for-purpose requirements for a dedicated metering device data validation process to check and ensure the quality ~~of the respective data.;~~consistency and interoperability of the respective data all harmonised under the network code for demand response. National regulatory authorities shall identify the costs for the roll-out of dedicated metering devices to define thresholds for the fees for the roll-out of these devices allocated to consumers. These requirements must be in line with the following set of principles: a) Any dedicated metering device that is used for other purposes than information or transparency, must meet technical requirements and be certified as stated in the EU Measurement Instruments Directive (2014/32/EU); b) Data from dedicated metering devices must be available to the system operator in the appropriate timing and must be integrated into the prevailing market communication architecture; c) If flexibility interventions are planned by the usage of such dedicated metering devices, system operators must be informed to ensure system stability.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point b

Regulation (EU) 2019/943
Article 8, paragraph 3

NEMOs shall provide products for trading NEMOs shall provide products for trading in day-ahead and intraday markets which in day-ahead and intraday markets which are sufficiently small in size, with are sufficiently small in size, with minimum bid sizes of 100kW or less, to minimum bid sizes of 100kW or less, to allow for the effective participation of allow for the effective participation of demand-side response, energy storage and demand response, energy storage and small-scale renewables including direct small-scale renewables including direct participation by customers. participation by customers.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point a

Regulation (EU) 2019/943
Article 18, paragraph 2b

2a. Tariff methodologies shall not allow for double network charges and taxation.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b

Regulation (EU) 2019/943
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, including those related to anticipatory investments, shall include those costs in transmission and distribution tariffs, and shall introduce performance targets in order to provide incentives to transmission and distribution system operators to increase efficiencies in their networks, including through energy efficiency, the use of flexibility services and the development of smart grids and intelligent metering systems.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point d Regulation (EU) 2019/943

(i) incentives for efficient investments in networks, including on flexib~~ility~~le resources and flexible connection agreements.

2023/05/25
Committee: ITRE

Morten PETERSEN, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Nicola DANTI, Ivars IJABS