The European Network Codes will cause significant changes to the GB Electricity Industry at both Transmission and Distribution levels.
The European Network Codes are a result of the European "third legislative package for the internal energy market" that came into force on 3 March 2011.
The European Network Codes cover Grid Connections, the Energy Market and System Operation. They are designed to provide a sustainable, secure and competitive electricity market across Europe.
The network codes and guidelines are as follows:
Requirements for Generators: Harmonise and update technical connection requirements for all types of generators from 800W upward.
Demand Connection Code: Connection of industrial loads and DSOs, and sets out requirements which will apply to the demand side of the power system.
HVDC: Rules for the use of HVDC technology included between synchronous area and embedded systems.
Forward Capacity Allocation: Couples existing European electricity forward markets to create a pan-European internal market by harmonising market rules for calculating and allocating capacity in the forward market.
Capacity Allocation and Congestion Management: Rules for allocating capacity in day-ahead and intra-day timeframe, calculating the levels of availability cross border, allocating and recovering costs.
Balancing: Rules for cross border exchange of reserves and balancing energy
System Operation Codes
Transmission System Operation Guideline. Setting minimum system security, operational planning and frequency management standards.
Emergency & Restoration.Harmonisation of system defence and restoration procedures during severe events.
ENTSO-E - European Network of Transmission System Operators
ENTSO-E drafts the European Network Codes and is the TSOs' organisation for Europe. National Grid Electricity Transmission plc, Scottish Hydro Electric Transmission plc, Scottish Power Transmission Limited and System Operator Northern Ireland are all members of ENTSO-e within the UK area.
Mailing list: www.entsoe.eu/news-events/news-subscription/
ACER – Agency for Cooperation of Energy Regulators
The Agency for the Cooperation of Energy Regulators (ACER) advises the EC and develops Framework Guidelines. ACER also leads on pan-European regulatory issues.
Mailing list: www.acer.europa.eu/portal/page/portal/ACER_HOME/newsbox
European Commission – Directorate-General Energy
The European Commission (EC) is responsible for setting policy and proposing legislation. It sets out the workplan for the development of Framework Guidelines and European Network Codes.
Mailing list: http://ec.europa.eu/dgs/energy/newsletter/index_en.htm
Ofgem is the UK’s representative on ACER.
The Department of Business, Energy & Industrial Strategy”
BEIS is the UK Government department responsible for interactions with the Commission on Energy matters.
The development process for European Network Codes follows a process setup in Article 6 of Regulation (EC) No 714/2009.
ACER develops Framework Guidelines: The Commission requests that ACER produce a ‘Framework Guideline’. ACER has six months to do this including appropriate stakeholder engagement. The Framework Guidelines set out the clear and objective principles for the development of Network Codes.
ENTSO-E develops Network Code: The Commission provides a mandate to ENTSO-E to develop a Network Code on a topic which is in line with the framework guideline. ENTSO-E has twelve months to develop the Network Code before submitting it to ACER.
ACER agrees Network Code: ACER will review the Network Code for compliance with the framework guidelines. ACER has the option of asking ENTSO-E to provide revisions to the Code. When ACER is content, they recommend the Network Code to the Commission.
Comitology: The Network Code becomes law by a process call Comitology, whereby member states, the Council of Ministers and the European Parliament agree to the Network Code.
Publication: The Network Code is expected to be published as an Annex to the third package leglislation. The text will include details of then the Network Codes applies from.
With the aim of enabling a greater penetration of renewables, improving supply security and enhancing European competition, the European Third Energy Package came into law more than five years ago on 3 March 2011. The European Network Codes introduce a number of changes across the GB electricity industry to deliver the Single Energy Market. There are eight European Network Codes, each placing different obligations on Great Britain with varying degrees of impacts that will affect many GB customers and stakeholders.
The Markets & Balancing Team presented at a special Energy UK Event on the 25th November 2016 to provide an overview to a wider audience on what it means to GB Stakeholders.
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