ENTSO-E welcomes the European Commission’s report on the assessment of possibilities of streamlining and simplifying the process for Members States to apply for a capacity mechanism, the proposal for simplified State aid procedures for capacity mechanisms, and recommendations to update and simplify the European Resource Adequacy Assessments (ERAA) methodology.

As the body responsible for delivering the ERAA and drawing on insights from four editions to date, ENTSO-E outlines in its reaction paper key principles to ensure the methodology remains feasible, robust, and valuable to Member States. These include limiting unnecessary complexity, focusing on key uncertainties, and safeguarding the complementarity between the ERAA and National Resource Adequacy Assessments.

ENTSO-E cautions against proposals that would significantly broaden the scope or complexity of the ERAA, as this risks delaying delivery and undermining its utility at national level. As outlined in ENTSO-E’s response to the European Commission’s consultation on the draft Clean Industrial State Aid Framework, while ENTSO-E supports a simplified State aid procedure in principle, it warns that requiring ERAA to determine auction parameters (such as derating factors or capacity volumes) would fundamentally alter its role and jeopardise timely publication. Member States must retain the flexibility to base their capacity mechanism applications on national adequacy assessments, which can reflect specific conditions with higher precision.

Finally, ENTSO-E looks forward to working closely with ACER and the European Commission to revise the ERAA methodology in a way that ensures analytical robustness, policy relevance, and timely delivery within the legal framework.