The German energy market has seen fundamental changes in the last two years. The Federal Network Agency [BNetzA] adopted several resolutions in 2022 and 2023 to realign market communication for the electricity and gas sectors. The aim of these proposed changes is to ensure information security and to future-proof the energy market. At the heart of these changes is the introduction of AS4 as a communication protocol for power and upgrading the protocols in place for gas.
In our latest blog we already promised our readers a more in-depth overview on this topic, more specifically on the gas side of the market. As you may know, we have already supported the transition for the AS4 MABIS Processes for German power TSOs, and our teams are working on the implementation of AS4 for power scheduling in Germany, which will go live on October 1st 2024 with a transition period until December 1st ’24.
Why AS4?
In short, AS4 (Applicability Statement 4) is a message protocol based on web services to securely exchange B2B messages between market participants. While AS4 was based off AS2, the main difference is that AS4 works as a web-service with servers being permanently active. Furthermore, there are built-in features to ensure data validation and confidentiality.
This approach offers many benefits, including:
- Improved IT security: protecting sensitive data exchanges, such as market communications between energy market participants, is crucial given the increased prevalence of data breaches, cyberattacks, etc.
- Increased efficiency: AS4 enables more efficient and secure communication between market participants. Standardised message formats and communication protocols can streamline processes and minimise errors.
- Better market interoperability across Europe: by adopting common message standards and protocols, it will be easier for TSOs to connect grids across countries, improving energy supply security in the long run.
To address the many challenges facing our sector in the coming decades, robust systems and protocols need to be put in place that will help all market participants confront these changes with the best possible toolkit. AS4 is a small but important part of that toolkit (in our opinion).
How are we guiding our gas customers through this process?
The Federal Network Agency has created the framework conditions for starting the changeover to AS4 from 01.10.2024. From 01.04.2025, a higher level of protection will also be mandatory for all market participants. The market roles affected are grid operators (NB), suppliers (LF), metering point operators (MSB) and balancing group managers (BGM).
Here’s a more detailed timeline:
Planning phase: 01.04.24 – 01.08.24
- Market participants were encouraged to do their research and select a suitable AS4 solution (if you haven’t done so, speak to us!)
Testing, implementation and transition phase: 01.08.24 – 31.03.25
- Energy One provides customers with templates to request their AS4 certificates and acts as the intermediary between its clients and THE, making your life easier
- Energy One will configure the AS4 solution
- Energy One carries out internal testing with THE to ensure all is ready to start switching over customers, we estimate this step to be done by end of November ‘24
Below you can see a diagram of the high-level technical set-up and data flows:
During testing we closely follow the guidelines set forth by Trading Hub Europe:
- From December ‘24 onwards Energy One will work with its customers to ensure they are able to use the necessary AS4 functionality
- From December until end of January ’25 Energy One takes care of the switch for each client. This means we will be switching and testing each client’s BDEW AS4 communication channel(s) with THE
- As a fall-back in case of unforeseen circumstances it is still possible to send & receive messages by email or AS2 until end of March ’25, which we will keep up until all of your AS4 connections are fully tested and stable
Live mode: from 01.04.25
- As discussed in this blog, Energy One will make sure that all market participants who use our services have switched to AS4 well before the end of March 2025
- The use of AS2 or encrypted emails in gas market communication will no longer be permitted from 1st of April 2025
More information
As you can see, our business analysts and technical implementation teams are on top of this major change. If you are an Energy One customer, you will probably already be in touch with your account managers to ensure a smooth transition to AS4.
In the meantime, you can keep an eye on the Trading Hub Europe Website; and this THE presentation provides more context regarding regulatory requirements and additional technical details.
If you are looking for a reliable partner to help you with this transition, or if you are a client and want to know more, then do not hesitate to reach out:
