Conference highlights role of regulators in shaping future resilient & decarbonised pan-European energy system
On 17 October, the CEER Annual Conference 2024 brought together European energy regulators, policymakers, and industry leaders to discuss the way forward to continue delivering a decarbonised, consumer-centric and competitive energy system in 2030 and beyond.
In her opening speech, CEER President Annegret Groebel highlighted that the energy transition is at a critical juncture, with regulators’ role as important as ever. “We must ensure the energy system evolves efficiently to integrate renewables and use new technologies. The regulatory framework should be applied to ensure markets work properly and send out the right price signals, to the benefit of all consumers, including the most vulnerable.”
During the conference, the need for a pan-European approach to electricity security of supply and energy transmission was made clear, with a focus on investment and flexibility. Emphasis was also placed on the deployment of renewable energy sources, providing consumers with transparent information, and maintaining regulators’ independence amid expanding workloads.
Earlier in the day, CEER brought together female and male representatives from EU institutions and associations to discuss gender equality in the energy sector and reflect on the results of a survey on women in managerial roles within energy regulatory authorities.
With around 700 participants tuning in from across several continents, this year’s CEER Annual Conference emphasised again the need for multistakeholder collaboration in exchanging ideas and shaping the future of Europe’s energy policy.
Summary of discussions
Challenges in the future electricity system
Speakers highlighted that flexibility is crucial for integrating renewable energy sources (RES) into the electricity system. They emphasised the ongoing importance of conventional generation in providing flexibility as RES capacity expands. Assessing flexibility needs based on local demand was deemed essential, alongside the need for regulatory predictability and transparency to encourage investment in flexibility solutions.
Reflecting on the recent ACER-CEER Position Paper on Challenges of the Future Electricity System, speakers also stressed the importance of balancing daily flexibility requirements with long-term system resilience and called for regulators to reduce barriers for hybrid plants, aggregators and large and medium industry to exploit demand response and self-production.
The need for a paradigm shifts to manage uncertainties and mitigate risks effectively also featured in the discussions.
The role of decarbonised gases in the energy transition
Speakers agreed that the gas sector faces important challenges in its path to decarbonisation. The trend of declining demand for natural gas has become a recurrent aspect of European gas markets.
Some hard-to-abate sectors will continue to rely on methane: heavy industry and transportation being the most important ones. In these sectors, biomethane and other biogases can play an important role as an alternative for markets actors in a post-fossil natural gas beyond 2050.
Hydrogen is projected to become a significant alternative in the demand for decarbonised molecules within the energy sector. However, this is still a nascent sector, surrounded with many uncertainties.
The Hydrogen and Gas Decarbonisation Package recently adopted by the EU institutions offers policy makers and regulators tools to help shape a path forward to fully decarbonised gas markets within the 2050 target of carbon neutrality.
Empowering consumers in volatile energy markets
Reflecting on lessons learned in the recent CEER report Beyond the Crisis: Consumer protection and market measures for better functioning markets, speakers highlighted the evolution of consumer behaviour and expectations in the energy system. As consumer needs change, new services must reflect these shifts as emphasised in the ACER-CEER 2024 Market Monitoring Report on Energy Retail and Consumer Protection
Effective communication and financial support are crucial to encouraging active participation. The energy system should be designed around consumer needs, rather than forcing consumers to adapt.
The example of smart meters was given example, can help consumers better manage their energy use. However, low adoption rates, driven by privacy concerns, must be addressed to realise the full benefits of these technologies.
Speakers also reflected on the necessity to ensure energy justice and inclusiveness. Support should be tailored to meet the diverse needs of different consumer groups. Digitalisation can help identify these needs and ensure support reaches those who require it most.
Maintaining national regulators’ independence
Representatives from the European Commission and OECD commented on the importance of NRAs’ independence within legal and institutional frameworks, NRAs’ responsibilities have expanded alongside their responsibilities and tasks. It is important that they get the support they need to ensure their independence is maintained.
Gender equality in the energy sector
In the morning, CEER welcomed representatives from EU organisations to bring together inspiring voices to discuss gender equality in the energy sector. Energy regulators shared the results of a survey on women in managerial roles within Energy Regulatory Authorities. CEER is a long standing member of ICER and through its Women In Energy initiative is committed to promote women in energy and will continue assessing regularly how the empowerment of women is implemented within NRAs and encouraging the debate.
