The European Network of Transmission System Operators for Electricity (ENTSO-E) released its latest report reviewing progress in capacity allocation and congestion management (CACM) mechanisms between June 2024 and May 2025. The report details ongoing efforts to strengthen Europe’s interconnected electricity system, aiming to enhance efficiency, reliability, and market integration under the Capacity Allocation and Congestion Management (CACM) and Forward Capacity Allocation (FCA) Regulations. Advancements in these areas are essential to achieving efficient resource use, cost-effectiveness, and security of supply for European consumers.
According to ENTSO-E, ongoing developments in capacity allocation, market coupling, and forward markets are reinforcing Europe’s cross-border electricity integration efforts. The report notes that the summer of 2024 saw relatively low electricity prices due to strong nuclear, hydro, and renewable generation. However, as winter approached, prices increased amid declining gas storage levels and rising geopolitical tensions that affected supply routes. By early 2025, electricity prices peaked above EUR140 per MWh in some markets before declining sharply in March and April due to warmer weather, strong solar output, and lower gas prices. A significant achievement during the reporting period was the successful implementation of bilaterally coordinated capacity allocation on all Ukrainian borders in early 2024. Building on this, discussions began in June 2024 on the introduction of monthly long-term and intraday auctions, with new rules under development by expert groups.
The report reiterates the importance of the EU Electricity Regulation’s Article 16(8), which requires TSOs to make at least 70 per cent of transmission capacity available for cross-zonal trading. While some TSOs or member countries operate under temporary derogations or action plans, ENTSO-E’s annual market report provides a detailed overview of compliance levels and differences across countries. The association also emphasises the need for caution when applying the 70 per cent rule in intraday timeframes to preserve system security.
Access the full report here