Network Code on Demand Connection (DCC)
- Category: Energy Market
Network Code on Demand Connection (Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a Network Code on Demand Connection - DCC) needs to be read in the context of all remaining Connection Network Codes (NC RfG and NC HVDC).
DCC has been recommended by ACER to the European Commission in 2013.
Full application, as per the code requirements, begins three years after the entry into force of the European legislation.
These three years can be grouped in two main parts: the first two years will be used by the Member States to assimilate the DCC in their national provisions, and the last year will be used by the impacted parties to comply with the Network Code requirements.
The respective Regulation is binding and directly applicable in all EU Member States.
Articles 58 and 59 DCC
Amendment of contracts and general terms and conditions
1. Regulatory authorities shall ensure that all relevant clauses in contracts and general terms and conditions relating to the grid connection of new transmission-connected demand facilities, new transmission-connected distribution facilities, new distribution systems and new demand units are brought into compliance with the requirements of this Regulation.
2. All relevant clauses in contracts and relevant clauses of general terms and conditions relating to the grid connection of existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems and existing demand units subject to all or some of the requirements of this Regulation in accordance with paragraph 1 of Article 4 shall be amended in order to comply with the requirements of this Regulation. The relevant clauses shall be amended within three years following the decision of the regulatory authority or Member State as referred to in Article 4(1).
3. Regulatory authorities shall ensure that agreements between system operators and owners of new or existing demand facilities or operators of new or existing distribution systems subject to this Regulation and relating to grid connection requirements for transmission-connected demand facilities, transmission-connected distribution facilities, distribution systems and demand units used by a demand facility or a closed distribution system to provide demand response services to relevant system operators and relevant TSOs, in particular in national network codes, reflect the requirements set out in this Regulation.
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Without prejudice to Article 4(2)(b), Article 6, Article 51, Article 56 and Article 57, the requirements of this Regulation shall apply from three years after publication.
The scope of DCC is rather restricted as lays down the requirements for grid connection of four categories of entities:
(a) transmission-connected demand facilities;
(b) transmission-connected distribution facilities;
(c) distribution systems, including closed distribution systems;
ENTSO-E non-binding guidance on DCC
Under Article 56 of the DCC ENTSO-E has the power to issue non-binding guidance on DCC (Implementation Guidance Document - IGD).
DCC Article 56
Non-binding guidance on implementation
1. No later than six months after the entry into force of this Regulation, the ENTSO for Electricity shall prepare and thereafter every two years provide non-binding written guidance to its members and other system operators concerning the elements of this Regulation requiring national decisions. The ENTSO for Electricity shall publish this guidance on its website.
2. ENTSO for Electricity shall consult stakeholders when providing non-binding guidance.
3. The non-binding guidance shall explain the technical issues, conditions and interdependencies which need to be considered when complying with the requirements of this Regulation at national level.
The main objective of the implementation guidance is to support system operators in the process of determination on national level of non-exhaustive requirements during the national implementation.
Non-exhaustive requirements are those for which the European level network codes do not contain all the information or parameters necessary to apply the requirements immediately and need further national specifications for its entire application in general on national level or as a site-specific choice.
Non-exhaustive requirements of the DCC are listed in the ENTSO-E Guidance document for national implementation for network codes on grid connection, Parameters of Non-exhaustive requirements, Draft for consultation 1 July -15 August 2016, 22 June 2016, p. 13 - 17.
Further objectives of the IGDs are:
- to facilitate a common understanding of technical issues specified in the connection network codes, in context of new technologies and new requirements (e.g. synthetic inertia),
- to deliver broader explanations and background information and to illustrate interactions between requirements,
- to recommend coordination/collaboration between network operators (TSO) where either explicitly required by the connection codes or reasonably exercised from a system engineering perspective,
- to give guidance to national specifications for non-exhaustive requirements, and
- to express the need of further harmonisation beyond what is requested by the connection network codes when reasonable from a system engineering perspective (Connection Network Codes – Introduction to the public consultation of Implementation Guidance Documents, Introduction, 30 June 2016).