Risk-preparedness in the electricity sector

SUMMARY OF:

Regulation (EU) 2019/941 on risk-preparedness in the electricity sector

WHAT IS THE AIM OF THE REGULATION?

It aims to:
- better identify possible electricity crises*;
- prepare crisis-management plans; and
- handle crises when they occur.
It establishes a common methodology and lays down rules for cooperation between EU countries with a view to preventing, preparing for and managing electricity crises in a spirit of solidarity and transparency, while respecting the requirements for a competitive internal market for electricity.
It repeals Directive 2005/89/EC which set out the measures EU countries had to take to ensure security of electricity supply in general.

KEY POINTS

The European Network of Transmission System Operators for Electricity (ENTSO-E):

submits, by 5 January 2020 after wide-ranging consultation, to the Agency for the Cooperation of Energy Regulators (ACER) for approval and/or amendment methodology:
- for identifying regional electricity crisis scenarios in relation to system adequacy, system security and fuel security;
- for assessing seasonal and short-term (monthly, week-ahead and day-ahead) electricity system adequacy when confronted by issues such as severe weather;
identifies, within 6 months of approval of the first methodology, the most relevant electricity crisis scenarios for each region;
reassesses these regional crisis scenarios every 4 years;
updates and improves both methodologies when significant new information becomes available;
carries out seasonal adequacy assessments, publishing those for winter by 1 December and for summer by 1 June each year.

The methodology for identifying regional electricity crisis scenarios:

takes account at least the following risks:
- rare and extreme natural hazards;
- accidental hazards;
- consequential hazards, including malicious attacks and fuel shortages;
includes the following:
- consideration of all relevant national and regional circumstances;
- interaction and correlation of cross-border risks;
- simulations of simultaneous electricity crises;
- ranking of risks according to their impact and probability;
- principles for handling sensitive information while ensuring transparency.
is published on the ENTSO-E and ACER websites.

Competent authorities, appointed by EU countries by 5 January 2020:

are responsible for, and cooperate with each other, in implementing the tasks set out in the legislation;
cooperate with transmission and distribution system operators, regulatory authorities,ENTSO-E, regional coordination centres and other relevant stakeholders as necessary;
identify, within 4 months of the identification of the regional electricity crisis scenarios, the most relevant national electricity crisis scenarios and update these every 4 years;
establish risk-preparedness plans, based on the identified regional and national crisis scenarios. The plans, which will be assessed by the European Commission, after consulting the Electricity Coordination Group (ECG), follow a template setting out information such as:
- summary of the electricity crisis scenarios;
- roles and responsibilities of competent authority;
- procedures and measures in an electricity crisis (e.g. national, regional and bilateral);
- appointment and defined role of a crisis coordinator;
- consultation with stakeholders, such as transmission and distribution operators and electricity and natural gas companies;
- emergency testing;
issue immediately an early warning* to the Commission and neighbouring EU countries when reliable information indicates an electricity crisis may occur on its territory, and provide relevant information;
declare an electricity crisis and inform the Commission and neighbouring EU countries;
submit an evaluation report, at the latest 3 months after the end of an electricity crisis, to the Commission and the ECG, describing the event and assessing its impact, measures taken and possible improvements.

Monitoring

The ECG discusses issues such as the coherence of the risk-preparedness plans, the results of the adequacy assessments and the performance of EU countries in the area of security of electricity supply*.
The ACER monitors security of electricity supply measures and reports regularly to the ECG.
The Commission, by 1 September 2025, submits a report to the European Parliament and the Council on how to improve security of electricity supply in the EU.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 4 July 2019.

BACKGROUND

Electricity crises can occur for many reasons, for example due to extreme weather conditions, malicious attacks or fuel shortages. Where crisis situations occur, they often have a cross-border effect. Large-scale incidents, such as cold spells, heat waves or cyberattacks can affect several EU countries at the same time.

The regulation is one of the 8 pieces of legislation in the ‘Clean energy for all Europeans’ package the Commission tabled in November 2016. This contributes to shaping the Energy Union, keeping the EU competitive and fulfilling its climate change Paris Agreement commitments.

KEY TERMS

Electricity crisis: existing or imminent situation where there is a significant electricity shortage.

Early warning: provision of concrete, serious, reliable information indicating that an event may occur which is likely to result in a significant deterioration of the electricity supply situation and to lead to an electricity crisis.

Security of electricity supply: ability of an electricity system to guarantee supply to customers with a clearly established level of performance.

MAIN DOCUMENT

Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC (OJ L 158, 14.6.2019, pp. 1-21)