Friends of the Supergrid (“FOSG”) welcomes the approach taken by the EU electricity regulator ACER to future infrastructure regulation in its paper, “Energy Regulation: A bridge to 2025”. Getting the regulatory framework correct today will enable the very large investment in cross-border infrastructure required to double existing capacity across the EU by 2030.

FOSG is convinced that a single EU electricity market underpinned by Supergrid will deliver a reduction in energy prices for European consumers.

This requires EU policy certainty to enable investment in new meshed grid networks. ACER should issue guidance to Member States on least cost alternatives between building new generation capacity or new infrastructure, thereby optimising existing capacity within Member States, as well as identifying locations across the EU for future generation.

Policy makers should take action this year on a package of measures to deliver a single electricity market by incentivising investment in infrastructure, activating the demand side, and encouraging further investment in low carbon generation.

The European Commission has an opportunity now, as part of the 2030 discussions, to propose grid infrastructure targets while ACER should establish a European cost-allocation mechanism including financial incentives for TSOs and other investors in new grid networks.

Full document available at: http://supergrid.brussels/fosg-response-to-acer-pre-consultation-on-energy-regulation-a-bridge-to-2025-set-of-papers/