other hand , interconnection also implies that changes in one country have an impact on its neighbours . This is why we need to seek increasingly regional rather than national solutions : While Europe ’ s electricity markets grow pan-European , national energy policies can have distortive or obstructive effects when they are uncoordinated or conflicting . Regionalisation in the electricity sector is not about creating new clear-cut borders , but about easing the relationship between the European and national levels . There is no EU-wide mandate or consensus to fix how exactly national energy mix and security of supply decisions combine with the Europe-wide market . However the potential for consensus and the need for it to avoid nasty market distortions is bigger at regional level . Regional actions allow to move faster , to test and spread innovative solutions and to reach specific conclusions . Policy regions need to be flexible , manageable in size and number and ensure the involvement of strongly interconnected non-EU members . Policy regions should thus be defined in a voluntary process in order to address issues such as energy mix , planning of interconnectors , market development , integration of RES into the market , supporting risk preparedness , adequacy issues and cooperation between capacity mechanisms , without questioning Member State decision-making power . On many of these aspects , ENTSO- E ’ s work can support Member States ’ decision-making . We have been continuously improving our system adequacy methodology . Member States should use our Mid-term Adequacy Forecasts as a basis for regional measures to ensure security of supply , e . g ., market design adaptations with due consideration of their national specificities . By the same token , we are convinced that Europe needs a more coordinated approach for renewables support schemes . This would improve the economic efficiency of the energy transition in Europe through an optimised development of renewables based on Member States ’ differentiated natural resources . Such an approach suggests the gradual harmonisation of the type and the level of RES support at least at the regional level to achieve the 2030 targets more cost-effectively . This sounds ambitious , but important first steps in this direction are already underway : Germany and Denmark , for instance , just agree on a pilot to open up their renewables support schemes to one another . Although Germany ’ s and Denmark ’ s agreement is an historic first , the concept of policy regions is not new . The Penta-Lateral Energy Forum , the Nordics or Baltic Energy Market Interconnection Plan for instance , have had successes in devising regional energy policy coordination . Wherever possible , such existing regional cooperation structures based on historical and market cooperation aspects should be used to form energy policy regions . The European Commission ’ s Energy Union Strategy is the right framework to develop policy regions further , and its forthcoming legislative proposals for the electricity market design and the Energy Union governance are important opportunities to anchor the principles of policy regions in law . ■
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