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National Grid Electricity


Transmission APFC installation, UK (photo: Smart Wires)


Achieving the EU’s ‘70% Requirement’


How advanced power flow control technology can increase capacity of the existing grid and help transmission system operators address a formidable challenge


Mark Norton VP of Business Development for Smart Wires


As part of its ambitious energy policy, the European Union mandated that transmission system operators (TSOs) make at least 70% of their interconnection capacity available for cross-border electricity trading by the end of 2025. Adopted in January 2020, this so-called ‘70% requirement’ directive aims to enhance the efficiency of the European grid, lower electricity prices for consumers, and facilitate the transition to a more integrated and decarbonised energy market.


However, progress has been slow, with congestion and inefficiencies threatening to derail this ambitious plan. With the deadline now less than a year away, the obligation for TSOs to meet this ‘70% requirement’ has been the subject of numerous articles and reports. While some countries have already exceeded the target on interconnections, many others are lagging behind. This delay jeopardises system efficiency and raises the risk of penalties, as the EU Electricity Regulation mandates that Member States impose effective, proportionate, and dissuasive penalties for infringements. So, what can transmission owners do to move closer to reaching 70% available capacity between countries? Fortunately, targeted grid developments and solutions, such as advanced power flow control (APFC), can enhance capacity on the existing grid while also accelerating progress to meet the target on time.


The state of the EU grid The European grid is currently facing significant congestion due to inadequate cross-border capacity. As highlighted in the European Union Agency for the Cooperation of Energy Regulators (ACER) 2024 Market Monitoring Report, this congestion resulted in €4.2 billion in costs across EU nations in 2023, with Germany alone shouldering 60% of these expenses. In addition to financial burdens, the need for increased redispatch of generation to manage congestion has led to higher carbon emissions, which further complicates the EU’s goal of reducing its environmental footprint.


Achieving and maintaining the 70%


interconnection capacity target is not merely about regulatory compliance; it also carries substantial socio-economic and environmental implications. Efficient cross-border electricity trading can reduce electricity costs, enhance the security of supply, and support the integration of renewable energy sources across Europe. But how can this goal be reached within the next year? To support TSOs in reaching the 70% interconnection capacity target, ACER has put forward three key recommendations: Implement co-ordinated capacity calculation and management. Standardised processes among TSOs can effectively manage cross- border electricity flows, addressing loop flows and other congestion issues. Co-ordination


ensures a comprehensive understanding of system-wide impacts to meet the 70% requirement.


Undertake targeted grid developments. Investments in new infrastructure like transmission lines and substations should focus on the most congested areas. This targeted approach is more timely and cost- effective in addressing critical congestion points.


Reconfigure bidding zones. Properly aligning bidding zones with structural grid congestion reflects true electricity costs and distribution. Adjusting zones can promote optimal capacity use and stimulate necessary investments to meet the 70% requirement.


Since two of these recommendations require a co-ordinated process and organisational structural changes, let’s focus on the recommendation to undertake targeted grid developments in the most congested areas of the grid. This applies to both congestion on the internal network of a country that limits cross-border flows as well as congestion on the interconnectors’ capacity.


While new linear infrastructure (eg, lines, cables, substations, etc) is certainly needed to strengthen European grids, the reality is that – aside from new infrastructure projects already underway – these simply will not be delivered in time to make progress by the end of 2025.


www.modernpowersystems.com | March 2025 | 31


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