Eurelectric responds to ENTSO-E's 2025 European Resource Adequacy Assessment consultation

A Eurelectric consultation response paper We cover the entire industry from electricity generation and markets to distribution networks and customer issues. We alsohave affiliates active on several other continents and business associates from a wide variety of sectors with a direct interestin the electricity industry. We stand for The vision of the European power sector is to enable and sustain:-A vibrant competitive European economy, reliably powered by clean, carbon-neutral energy-A smart, energy efficient and truly sustainable society for all citizens of Europe We are committed to lead a cost-effective energy transition by: investingin clean power generation and transition-enabling solutions, to reduce emissions and actively pursue efforts tobecome carbon-neutral well before mid-century, taking into account different starting points and commercial availability of keytransition technologies; transformingthe energy system to make it more responsive, resilient and efficient. This includes increased use ofrenewable energy, digitalisation, demand side response and reinforcement of grids so they can function as platforms andenablers for customers, cities and communities; acceleratingthe energy transition in other economic sectors by offering competitive electricity as a transformation tool fortransport, heating and industry; embeddingsustainability in all parts of our value chain and take measures to support the transformation of existing assetstowards a zero carbon society; innovatingto discover the cutting-edge business models and develop the breakthrough technologies that are indispensableto allow our industry to lead this transition. Eurelectric response to the ENTSO-E consultation on About you 1. What is your first name? Robert Birch 4. What is your organisation? Eurelectric / Other 5.If you tick this box, we will publish your comments, but we will notpublish your name and organisation. I want my answer to be anonymous. [box unticked] 6.If you tick this box, we will not publish your answer to thisconsultation. However, your answer, without your name andorganization, may be shared with EU and national authorities, drafting I do not want my answer to be published. [box unticked] 7.I agree to ENTSO-E's Consultation Hub privacy policy. I agree to ENTSO-E's Consultation Hub privacy policy. 8.I agree to ENTSO-E's Consultation Hub Terms of Use. I agree to ENTSO-E's Consultation Hub Terms of Use. Your feedback on ERAA 2025 9.The ERAA target methodology is set to support the achievement ofthe EU 2030 climate and energy objectives set out in Article 1(a) ofElectricity Regulation. Do you agree that ERAA 2025 is already an a)Strongly agreeb)Agreec)Neutrald)Disagreee)Strongly disagreef)Don't know 10. How is ERAA 2025 useful to you or your business? a)Adequacy situation in the mid-term drives our business decisions.b)The results of ERAA support our policy or regulatory decisions.c)We are interested in understanding the methodology of ERAA for researchpurposes.d)We are interested in understanding the methodology of ERAA forbusiness/consulting purposes. In case you checked the box "Other", or in case you want to give additionalexplanations, please provide your comments in the text box below. 11. In your opinion, how important are the following features of the 2025ERAA edition? (5 being very important; 1 being less important) Consideration of uncertainty of investment decision-making by alternative risk aversionmodelling approaches in the central reference scenario 12345 Refined risk aversion modelling by enhanced hurdle premiums123 Refined risk aversion modelling by introduction of revenue-cap to exclude revenuesfrom rare price spikes Weather Scenario selection methodology advancements In case you want to give additional explanations or describe other features, pleaseprovide your comments in the text box below. Risk aversion modelling:the alternative risk aversion modelling approach provides animproved view to the EVA. Increased regulatory risk and greater price volatility mean thatinvestors into new generation assets are more demanding when making decisions abouthow and where to invest. There are concerns that risk aversion modelling has been Weather Scenarios:stress-testing resource adequacy against sufficiently extreme (butnot too extreme) weather scenario is of the most interest. However, not all weatherscenarios are as relevant to all of Europe in terms of adequacy. Refining the approach to Improvements for future editions 12. What are in your opinion the most important data and generalmodelling features to be developed in future ERAA editions? Rank 1Additional scenario (c.f. Trends and Projections scenario definition in proposal toupdate ERAA methodology) 5Variant scenario considering all approved capacity mechanisms 6Improve demand response modelling 7Improve maintenance optimization methodology 2Weather scenarios and weather-dependent generation datasets (feedback wi