Updating the Security of Energy Supply Architecture and Preparedness Toolbox for an Increasingly Electrified Energy System

Electrification is accelerating, and Europe’s energy system is undergoing a profound transformation – becoming more decarbonised, decentralised, and digitalised. At the same time, the system faces a convergence of unprecedented risks, from cyber threats and extreme weather to geopolitical tensions. In this high-stakes environment, the EU’s Security of Supply (SoS) framework faces a resilience test it cannot afford to fail. 

This issue paper focuses on electricity SoS, where the primary objective is to ensure sufficient generation to meet demand at all times, and aims to contribute to the legislative reform currently envisaged by the European Commission. 

The SoS Regulatory Pyramid 

After clarifying key terminology, the paper reviews the structure and content of the EU’s evolving SoS and Preparedness framework. Security of supply is framed as an integrated architecture built on three distinct but interconnected layers: 

1. Structural components embedded in the electricity market (only) design; 
2. Supplementary market mechanisms to ensure SoS; 
3. Risk preparedness and emergency measures 

© Author: Catherine Banet, UiO/CERRE

Policy Recommendations 

The paper explores how the EU can adapt its framework to meet emerging challenges, while maintaining market integration and accelerating decarbonisation – in both normal times and crisis situations. A comprehensive approach spanning all three SoS layers is deemed essential to anticipate, prepare for, and manage crises. Concrete policy recommendations include: 

1. Layered but integrated SoS architecture 
   • Adopting targeted legislative amendments and market-based SoS tools 
   • Prioritising power quality and inertia, local flexibility, stronger network operation, interconnections, and “fit-for-purpose” governance 
   • Increasing resilience without undertaking a disruptive, full EMD reform 
2. Upgraded adequacy regulation with non-distortive supplementary mechanisms  
   • Using supplementary mechanisms only when they are non-distortive, transparent, proportionate, open to cross-border participation, technology-neutral, performance-based, and time-limited.
   • Addressing scarcity beyond the EOM while avoiding distortions and free riding 
   • Further aligning the criteria used to complete the European Resource Adequacy Assessment (ERAA) and for the EU-wide flexibility assessment platform
3. Consolidated, coordinated and efficient preparedness toolbox 
   • Adopting an EU-wide, rules-based risk-preparedness framework with harmonised assessments, regularly updated plans, streamlined crisis playbooks, and incentive-compatible solidarity conditioned on credible national preparedness to curb moral hazard
4. System approach of the SoS architecture  
   • Building one integrated SoS framework for electricity, gas, and low-carbon gases, with aligned rules, joint planning, and shared data, so the system is resilient, efficient, and market-consistent 

The Issue Paper will be discussed at the CERRE event  Virtual Roundtable on Critical Infrastructure Resilience (5 November).