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The internal electricity market will play an important role in achieving the green transition

At the 35th Florence Forum, Ditte Jul Jörgensen, the Director-General of the European Commission’s Directorate-General for Energy highlighted the example of market-connection as a tool of guaranteeing the supply-security in the Member States, reducing consumer bills and integrating renewable energy sources into the market.

The Florence Forum is the European Union’s electric power industry forum, that provides an opportunity to look at developments in the EU’s internal energy market and to discuss the latest regulatory challenges and proposed solutions between the European Commission, Member States, regulators, industry and organisations.

At the forum, Mrs Jörgensen drew further attention to many other hot-topic fields, just like the role of the internal electricity market in implementing the green transition, offshore renewable energy, hydrogen strategies and energy sector integration, as well as increasing the share of electricity consumption in the cooling and heating sectors and in the transport sectors.

Forum participants emphasised that well-functioning electricity markets play a key role in ensuring source-adequacy. They also acknowledged the common work of transmission system operators (TSOs) in strengthening regional operational safety coordination and transforming regional safety coordinator organisations into statutory regional coordination centres (RCCs).

“Priority should be given to the early implementation of the EU electricity operating and trading rules, where, despite significant results, there are delays which could lead to a loss of social welfare in the Member States,” agreed the participants. 

In the future, a review and possible revision of the operating and trading rules will be justified in order to make the functioning of the internal electricity market more efficient by incorporating the experience of implementation difficulties and the provisions of the clean energy package.

Participants also remarked the importance of strengthening cybersecurity cooperation in the electric power industry and accordingly supported the preparatory work that will lay the first milestones for the development and adoption of an EU code on cybersecurity, operation and trade within the industry.

The key role of cooperation between transmission and distribution system operators in the operation and planning of networks also has been acknowledged. There is a need for an institutionalised strengthening of cooperation between them at a higher, European level, in accordance with the provisions of the EU Electricity Regulation. The Forum welcomed the establishment of the European Distribution System Operators’ Organisation (EUDSO).

The Hungarian Energy and Public Utility Regulatory Authority (MEKH) also supports the expansion and development of effective regional market integration and regional operational safety co-operations, which are essential steps in creating an integrated, internal electricity market. The connection of short-term-trade electricity markets and the introduction of regionally coordinated flow-based cross-border capacity calculations with effective operational coordination remained a key priority for the participants. In Hungary, the latter task is being performed by the Hungarian TSO through its participation in the TSCNET regional security coordinator.

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