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1. No later than one year after the approval by ACER of the methodology pursuant to paragraph 6, and every two years thereafter, the regulatory authority or another authority or entity designated by a Member State, shall adopt a report on the estimated flexibility needs for a period of at least the next 5 to 10 years at national level, in view of the need to cost effectively achieve security and reliability of supply and decarbonise the electricity system, taking into account the integration of variable renewable energy sources and the different sectors, as well as the interconnected nature of the electricity market, including interconnection targets and potential availability of cross-border flexibility. The report referred to in the first subparagraph shall:

(a) be consistent with the European resource adequacy assessment and national resource adequacy assessments conducted pursuant to Articles 23 and 24;

4. The ENTSO for Electricity and the EU DSO entity shall coordinate the work of transmission system operators and distribution system operators as regards the data and analyses to be provided in accordance with paragraph 3. In particular, they shall:

(a) define the type and format of data that transmission system operators and distribution system operators are to provide to the regulatory authorities or another authority or entity designated pursuant to paragraph 1;

(b) develop a methodology for the analysis by transmission system operators and distribution system operators of the flexibility needs, taking into account at least:

(i) all available sources of flexibility in a cost-efficient manner in the different timeframes, including in other Member States;

(ii) planned investment in interconnection and flexibility at transmission and distribution level; and (iii) the need to decarbonise the electricity system in order to meet the Union’s 2030 targets for energy and climate, as defined in Article 2, point (11), of Regulation (EU) 2018/1999, and its 2050 climate neutrality objective laid down in Article 2 of Regulation (EU) 2021/1119, in compliance with the Paris Agreement adopted under the United Nations Framework Convention on Climate Change ().

The methodology referred to in point (b) of the first subparagraph shall contain guiding criteria on how to assess the capability of the different sources of flexibility to cover the flexibility needs.

5. The ENTSO for Electricity and the EU DSO entity shall cooperate closely with each other as regards the coordination of transmission system operators and distribution system operators as regards the provision of data and analyses pursuant to paragraph 4.

6. By 17 April 2025, the ENTSO for Electricity and the EU DSO entity shall jointly submit to ACER a proposal regarding the type of data and format to be submitted to a regulatory authority or another authority or entity designated pursuant to paragraph 1, and the methodology for the analysis of the flexibility needs referred to in paragraph 4. Within three months of receipt of the proposal, ACER shall either approve the proposal or amend it. In the latter case, ACER shall consult the Electricity Coordination Group, the ENTSO for Electricity and the EU DSO entity before adopting the amendments. The adopted proposal shall be published on ACER’s website.

7. The regulatory authority or another authority or entity designated pursuant to paragraph 1, shall submit the reports referred to in paragraph 1 to the Commission and to ACER and shall publish them. Within 12 months of receipt of the reports, ACER shall issue a report analysing them and providing recommendations on issues of cross-border relevance regarding the findings of the regulatory authority or another authority or entity designated pursuant to paragraph 1, including recommendations on removing barriers to the entry of non-fossil flexibility resources. Among the issues of cross-border relevance, ACER shall assess:

(a) how better to integrate the flexibility needs analysis referred to in paragraph 1 of this Article with the methodology for the European resource adequacy assessment in accordance with Article 23 and the methodology for the Union-wide ten year network development plan, ensuring consistency between them;

(b) the estimated flexibility needs in the electricity system at Union level and its projected economically available potential for a period of the next 5 to 10 years taking into account the national reports;

(c) the potential introduction of further measure to unleash flexibility potential in the electricity markets and system operation. The results of the analysis referred to in the second subparagraph, point (a) may be taken into account in further revisions of the methodologies referred to in that point in accordance with the relevant Union legal acts. The European Scientific Advisory Board on Climate Change may, on its own initiative, provide input to ACER on how to ensure compliance with the Union’s 2030 targets for energy and climate and its 2050 climate neutrality objective.

8. ENTSO for Electricity shall update the Union-wide network development plan to include the results of the national reports of flexibility needs referred to in paragraph 1. Those reports shall be considered by transmission system operators and distribution system operators in their network development plans.

(b) be based on the data and analyses provided by the transmission system operators and distribution system operators of each Member State pursuant to paragraph 3 and using the common methodology pursuant to paragraph 4 and, where duly justified, additional data and analysis. Where the Member State has designated a transmission system operator or another entity for the purpose of adopting the report referred to in the first subparagraph, the regulatory authority shall approve or amend the report.

2. The report referred to in paragraph 1 shall at least:

(a) evaluate the different types of flexibility needs, at least on a seasonal, daily and hourly basis, to integrate electricity generated from renewable sources in the electricity system, inter alia, different assumptions in respect to electricity market prices, generation and demand;

(b) consider the potential of non-fossil flexibility resources such as demand response and energy storage, including aggregation and interconnection, to fulfil the flexibility needs, both at transmission and distribution levels;

(c) evaluate the barriers for flexibility in the market and propose relevant mitigation measures and incentives, including the removal of regulatory barriers and possible improvements to markets and system operation services or products;

(d) evaluate the contribution of digitalisation of electricity transmission and distribution networks; and (e) take into account sources of flexibility that are expected to be available in other Member States.

3. The transmission system operators and distribution system operators of each Member State shall provide the data and analyses that are needed for the preparation of the report referred to in paragraph 1 to the regulatory authority or another authority or entity designated pursuant to paragraph 1. Where duly justified, the regulatory authority or another authority or entity designated pursuant to paragraph 1 may request the transmission system operators and distribution system operators concerned to provide additional input to the report, in addition to the requirements referred to in paragraph 4. The electricity transmission system operators or the electricity distribution system operators concerned shall, together with operators of natural gas systems and of hydrogen systems, coordinate the gathering of the relevant information where necessary for the purposes of this Article.