Considering the lapsing deadlines set by the Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (NC RfG) it may be useful, particularly for energy market participants carrying out significant investments in or the refurbishments of the generation fleet, to take account of some NC RfG notification requirements that may occur important.

 

 

Is there still a room for Central Dispatch Model is the EU Internal Electricity System? 

 

In the recent Recommendation No 03/2015 of 20 July 2015 on the Network Code on Electricity Balancing, the European overseer of electricity markets - the Agency for the Cooperation of Energy Regulators (ACER) - departs from its earlier stance expressed in the Framework Guidelines on Balancing (which acknowledged the parallel existence of central dispatch and self-dispatch arrangements of European electricity markets when drafting the Network Code on Electricity Balancing) and nominates the Self-Dispatching Model to be "the primary dispatching model to be applied by TSOs for determining generation and consumption schedules".

 

Consequently, Central Dispatch has been allowed for Transmission System Operators only as an exemption, provided the relevant authorities' approval has been granted.

 

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While negotiating any agreements with electricity transmission system operators it is necessary to take account of provisions of the draft ENTSO-E Network Code on Electricity Balancing.

It is only non-binding draft now - some may say. Never mind...

 

 

Who will pay for market spread? 

 

 

In order to give adequate incentives for Balance Responsible Parties (BRPs), the draft Code Balancing Code asserts that BRP aggravating imbalances shall not be priced less (for shortage) respectively more (for surplus) than the weighted average price for Frequency Restoration Reserve (FRR) and Replacement Reserve (RR) in the relevant area, in order to reflect the local imbalance situation.

 

 

Network Code on Forward Capacity Allocation - ENTSO-E final proposal of 1 October 2013 made important business choices with respect to the role of transmission system operators in the secondary trading.

 

Attachments:
Download this file (Business resume on transmission rights - ENTSO-E final proposal of 1 October 201)Business resume on transmission rights - ENTSO-E final proposal of 1 October 201[Business Resume on transmission rights - ENTSO-E final proposal for Network Code on Forward Capacity Allocation of 1 October 2013]28 kB

 

Do the review of existing bidding zones increase the electricity generators' costs and risks?

 

 

The issue whether the generator is synchronously connected to the grid will be among the main criteria for differentiation of the legal status of power producers in the Internal Electricity Market.

Therefore specific requirements for non-synchronously connected Power Generating Modules (so-called Power Park Modules) are introduced.

 

 

The Draft Network Code Requirements for Grid Connection Applicable to all Generators (NC RfG) being the first EU action on addressing how generators should be equipped in the Internal Electricity Market contains 53 requirements of which 44 are of mandatory nature.

It is a regulatory issue whether the costs of meeting these requirements should be allocated to ancillary services and collected via grid tariffs or internalised in market prices for electricity.

 

 

The future shape of the European balancing market is not an obvious choice, since the surveys highlighted the great diversity of arrangements throughout Europe in that regard.

Although the balancing can be perceived as a technical only market, its design in many respects will influence on economic decisions in many connected areas.