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Security of supply of electricity
With a view to insuring the functioning of the internal energy market, the largest competitive market for electricity and gas in the world, the European Union (EU) establishes obligations to safeguard security of electricity supply and undertake significant investment in electricity networks. Blackouts in both the EU and US have highlighted the need to define clear operational standards for transmission networks and for correct maintenance and development of the network.
Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006 concerning measures to safeguard security of electricity supply and infrastructure investment.
Subject matter and scope
This Directive establishes measures aimed at safeguarding security of electricity supply so as to ensure the proper functioning of the EU internal market for electricity, an adequate level of interconnection between Member States, an adequate level of generation capacity and balance between supply and demand.
Member States must define general, transparent and non-discriminatory policies on security of electricity supply compatible with the requirements of a competitive single market for electricity. They must define and publish the role and responsibilities of competent authorities and different players in the market.
When adopting policy implementation measures, Member States must take certain elements into account, in particular the need to:
- ensure continuity of electricity supplies;
- study the internal market and the possibilities for cross-border cooperation in relation to security of electricity supply;
- reduce the long-term effects of growth of electricity demand;
- introduce a degree of diversity in electricity generation in order to ensure a reasonable balance between different primary fuels;
- promote energy efficiency and the use of new technologies;
- continuously renew transmission and distribution networks to maintain performance.
Operational network security
Transmission network operators must set minimum rules and obligations to ensure continuous operation of the transmission and, where appropriate, the distribution network under foreseeable circumstances. Member States may decide that these rules and obligations must be approved by the competent authorities and, where appropriate, also respected by the transmission network operators.
The network operators must set and meet quality of supply and network security performance objectives. Curtailment of supply in emergency situations must be based on predefined criteria and the relevant measures taken in consultation with other transmission system operators concerned.
Balancing supply and demand
The Directive provides for specific measures necessary to maintain the balance between electricity demand and available generation capacity, to avoid Member States taking more interventionist measures which are incompatible with competition. They will need to have a clear policy in place to maintain the balance between supply and demand. In particular Member States need to encourage the establishment of wholesale markets, require network operators to ensure that an appropriate level of generation reserve capacity is maintained, facilitate the development of new generation capacity, or encourage energy conservation and technology for demand management in real time.
Investment is crucial for competition and the future security of electricity supply in the EU. Member States must lay down a framework for providing information to network operators which facilitates investment.
Member States or competent authorities, in cooperation with transmission network operators, must prepare a report on security of supply, as provided for in the Directive on the internal electricity market. This report must contain information on operational network security, projected balance of supply and demand, prospects for security of supply within the medium term and investment intentions of transmission system operators as regards provision of cross-border interconnection capacity.
On the basis of this information, the Commission prepares a report and sends it to the Member States, the competent authorities and the European Regulators Group on Electricity and Gas.
|Act||Entry into force - Date of expiry||Deadline for transposition in the Member States||Official Journal|
|Directive 2005/89/EC||24.2.2006||24.2.2008||OJ L 33, 4.2.2006.|