Network Code on System Operation
- Category: Energy Market
Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (Network Code on System Operation or System Operation Guideline - SOGL) received a positive vote in comitology on 4 May 2016.
20 July 2022
ACER Recommendation on reasoned amendments to the Capacity Allocation and Congestion Management Regulation proposes changes to a wide range of topics, including amendments to the SOGL
Various amendments to the SOGL stem out directly from the revisions of the CACM Regulation. In particular:
The Network Code on System Operation have been designed by ENTSO-E, which merged into one legislative document the earlier three draft codes for operation in normal conditions (relating to operational security, operational planning & scheduling and load-frequency control & reserves).
The Network Code on System Operation lays down detailed guidelines on:
(a) requirements and principles concerning operational security;
(b) rules and responsibilities for the coordination and data exchange between:
- TSOs and Distribution System Operators (DSOs), and
- TSOs or DSOs and Significant Grid Users (SGUs);
in operational planning and in close to real-time operation;
(c) rules for training and certification of system operator employees,
(d) requirements on outage coordination;
(e) requirements for scheduling between the TSOs' control areas; and
(f) rules aiming at the establishment of a Union framework for load-frequency control and reserves.
The state of implementation of the SOGL as of July 2022 has been assessed by the ACER in its document of 20 July 2022 “Implementation Monitoring Report on the System Operation Guideline”.
According to the ACER in the majority of the EU Member States, TSOs determined the applicability and scope of the data exchange based on Articles 44 and 47-53. At the same time, the reported coordination of this process with DSOs and SGUs is satisfactory. Overall, ACER understands that in around 70% of jurisdictions, the determined provisions are either fully or partially implemented pursuant to Article 40(5). It is worth mentioning that in case TSOs did not determine the applicability and scope, the default rules for the data exchange, as prescribed in Articles 44 and 47-53, apply.
Over 60% of NRAs reported implementing or approving key organisational requirements, roles and responsibilities (KORRR) in relation to data exchange developed under Article 40(6); some NRAs indicated stepwise implementation of KORRR as the primary reason for declared delays. A similar number of NRAs confirmed that their respective TSOs and DSOs reached agreements on effective, efficient and proportional processes regarding data exchanges and the data exchange format, as per Article 40(7).
As for the determination of SGUs required to exchange data, NRAs' replies reveal a wide range of parameters and thresholds in specifying the responsibilities of the SGUs. Power values used as thresholds span from 0.25 MW to 12 MW. In ACER’s view, the wide range of power values raises the question as to whether there is a level playing field established in the EU pursuant to the SO GL.
Rules on the provision of data between TSOs, DSOs and SGUs are in principle specified. ACER notes that, although SGUs are required to provide data individually in most monitored countries, they are often allowed to delegate a third party to exchange structural data, scheduled data, and real-time data. Nevertheless, the implementation of these specified data exchange schemes is deemed outstanding in over 35% of countries. Also, the implementation of Article 43(5) on DSOs' obligation to provide data on generating capacity of the type A PGMs is not satisfactory.
The NRAs survey shows that monitored provisions of KORRR that lay down TSOs obligations have mostly been implemented. The highest implementation levels were reported for Article 10(5) of KORRR (refresh rate for real-time data) and Article 8(1) of KORRR (review of structural data shared with other TSOs) and Article 42(1) of SO GL (exchange of real-time data between TSOs). Some specific KORRR obligations, however, remain outstanding.
Article 2 of the Network Code on System Operation
1. The rules and requirements set out in this Regulation shall apply to the following SGUs:
(a) existing and new power generating modules that are, or would be, classified as type B, C and D in accordance with the criteria set out in Article 5 of Commission Regulation (EU) 2016/631;
(b) existing and new transmission-connected demand facilities;
(c) existing and new transmission-connected closed distribution systems;
(d) existing and new demand facilities, closed distribution systems and third parties if they provide demand response directly to the TSO in accordance with the criteria in Article 27 of Commission Regulation (EU) 2016/1388;
(e) providers of redispatching of power generating modules or demand facilities by means of aggregation and providers of active power reserve in accordance with Title 8 of Part IV of this Regulation; and
(f) existing and new high voltage direct current (‘HVDC’) systems in accordance with the criteria in Article 3(1) of Commission Regulation (EU) 2016/1447.
2. This Regulation shall apply to all transmission systems, distribution systems and interconnections in the Union and regional security coordinators, except transmission systems and distribution systems or parts of the transmission systems and distribution systems located in islands of Member States of which the systems are not operated synchronously with Continental Europe (‘CE’), Great Britain (‘GB’), Nordic, Ireland and Northern Ireland (‘IE/NI’) or Baltic synchronous area.
3. Where more than one TSO exists in a Member State, this Regulation shall apply to all TSOs in a Member State. Where a TSO does not have a function relevant to one or more obligations under this Regulation, Member States may, under the national regulatory regime, provide that the responsibility of a TSO to comply with one or some or all obligations under this Regulation is assigned to one or more specific TSOs.
4. The TSOs of Lithuania, Latvia and Estonia are, as long as and to the extent that they are operating in a synchronous mode in a synchronous area where not all countries are bound by Union legislation, exempted from the application of the provisions listed in Annex I to this Regulation, unless otherwise foreseen in a cooperation agreement with third country TSOs setting the basis for their cooperation concerning secure system operation pursuant to Article 13.
5. Where the requirements under this Regulation are to be established by a relevant system operator that is not a TSO, Member States may provide that instead the TSO be responsible for establishing the relevant requirements.