Unlocking flexibility in the electricity system: ACER flexibility needs assessment

With the increased uptake of intermittent renewable energy sources such as solar and wind, European electricity system are facing an increased need for flexibility services and related markets. This was formally acknowledged at a European level by the adoption in 2024 of new electricity market design rules, which define flexibility as ‘the ability of an electricity system to adjust to the variability of generation and consumption patterns and to grid availability, across relevant market timeframes’. Considering that flexibility can be provided by various sources, such as flexible generation, interconnectors, demand response, energy storage or the production of renewable fuels and for different geographical and time related situations, the amended Electricity Regulation introduced the flexibility needs assessment to help EU Member States in identifying their indicative national targets for non-fossil flexibility  and making sure their electricity systems remain secure and efficient during the energy transition. 

Earlier this year, ENTSO-E and the European Distribution System Operators Entity submitted to the EU Agency for the cooperation of Energy Regulators (ACER) a joint proposal on the national flexibility needs assessment methodology (FNA) setting out (i) the methodology for analysing national flexibility needs in electricity systems and (ii) the type of data to be gathered by system operators and in what format. ACER has now formally adopted the FNA, which is now binding a requires national assessments to be delivered by the national designated entities by July 2026, based on which the Member States must set their national non-fossil flexibility targets within 6 months. 

ACER will then review the national reports (by July 2027) and may provide recommendations (including on removing barriers) to ensure sufficient non-fossil based flexible capacity is in available. ACER is also working on an EU-wide flexibility needs assessment, which is expected to be published by July 2027. The FNA also caters for the introduction of flexibility support schemes and the introduction or adjustment of capacity markets to incentivise non-fossil flexibility. 

The outcome of each national FNA is expected to enable new flexibility policies that take into account market- and technology readiness levels, required investment- and operational costs and permitting requirements. This ‘flexible approach to flexibility’ should provide flexibility services providers with a clear framework based on which they can take investment decisions and secure financing.