The European Network of Transmission System Operators (ENTSO-E) has published a policy paper on “Regional Coordination and Governance in the Electricity Sector”. The paper introduces ENTSO-E’s concept of policy regions. These are imagined to bundle up political, regulatory, technical and commercial competences and are considered as essential to achieve the EU target of at least 45% of renewable electricity by 2030.
The concept aims not only at the integration of renewables, but also at the supply security and the development of efficient electricity markets. From ENTSO-E’s standpoint, policy regions are conceivable as assemblage of representatives from EU institutions, national ministries, regulators, transmission system operators (TSOs) and stakeholders. Policy regions could facilitate the regional coordination of support schemes for renewables or cross border balancing. Bente Hagem, Chair of the ENTSO-E Board, suggests “voluntary cooperation and manageable size” as “guiding principles” for the regions.
Policy regions like the “Pentalateral Energy Forum” are not to be confused with “functional areas”. Examples for the latter are regional service providers (RSPs), one of those being TSCNET Services. It is understood that the approach of policy regions has to be broader compared to functional areas. Peder Andreasen, President of ENTSO-E, acknowledges the demand of TSOs for more regional coordination. To ensure this and to “increase speed, policy regions are needed,” adds Andreasen. In some cases functional areas and policy regions may overlap, which is not necessarily so. “On the contrary, efficiency and security call for several functional areas to serve multiple policy regions,” Bente Hagem complements.
> See ENTSO-E press release (html)