An Introduction to Network Codes & Stakeholder engagement codes documents/Genera… · An...

An Introduction to Network Codes &

The Links Between Codes

April 2014

About ENTSO-E

41 TSOs

from 34 countries

532 million

citizens served

828GW

generation

305Thousand Km

of transmission lines

Ten-Year

Network

Development

Plans

Adequacy

forecastsR&D plans

Tools for Market

IntegrationNetwork Codes

The IEM: meeting Europe’s low carbon target

Variable generation Thousands of small units Huge flows all over Europe

System Stability, Resource Variability, Uncertainty, New connections, Changed power flows

Challenges

The IEM: creating benefits for European customers

Real choice

New business

opportunities

Cross border trade

•Efficiency

•Competitive prices

•Better service

•Security of supply

•Sustainability

Source: 3rd Energy package and EC communications

420 billion €

electricity sector’s annual turnover

80 % of power generation

still controlled by the long-established utilities

13 billion € / year

saved by EU customers through IEM

System operation:Delivering coordinated schemes

Market:Delivering well designed

pan-European markets

Infrastructure:Delivering a fit for purpose network

Three pillars for delivering the IEM

Efficiency

Competitive prices

Better

service

Security of supply

Sustainability

System

stability

Resource

variability

Uncertainty

Changed

power flows

Konstantin Staschus | 6 February 2013 | Page 5

Therefore: network codes matter; they form the foundation

on which the IEM is being built

3Connection

Network Codes 3Market

Network Codes 4Operational

Network Codes

set requirements for

- Generators

- Demand-side

- HVDC connections

set market rules for

- Day ahead/intraday &

Capacity calculation

- Long-term timeframes

- System balancing

set common rules for

- Assessing adequacy

- Planning outages

- System security

- Emergency situations

Internal electricity market

… day-ahead market

coupling…

…paving the way for

offshore wind…

…regional security

coordination initiatives…

Konstantin Staschus | 6 February 2013 | Page 6

What is a network code?

A set of rules applying to one aspect of the energy sector

Which are developed by ACER, ENTSO-E & market participants

And become legally binding after the Comitology process

Hence they will have the same status as any other Regulation

Article 4: ENTSO

•Charged with working to complete the internal energy market.

Article 6: Creating network codes

•In line with ACER framework guidelines.

•Which become binding.

•And involve extensive consultation.

Article 8; Para 7: The scope of network codes

•Cross border & market integration issues.

•Without prejudice to Member States’ right to establish codes.

Article 8: ENTSO-E’s activities

•Network codes

•Ten-Year Network Development Plans.

•Generation adequacy reports.

•Winter and summer outlooks.

•Work programs and annual reports.

ENTSO-E’s legal role

Under the designation of Regulation 714/2009

How are network codes developed?

Comitology process (where appropriate)

ECIn consultation with all stakeholders resulting in a legally

binding network code

Assessment of network code

ACER Recommendation of network code to the European Commission

Period in which ENTSO-E can develop a network code (12 month period)

ENTSO-E In consultation with stakeholders according to FWGL

Request for ENTSO-E to draft a network code

EC According to FWGL submitted by ACER

Development of the FWGL (6 month period)

ACER In consultation with ENTSO-E, stakeholders and Expert Group

Request to draft a FWGL

EC On a topic identified in art.8 (6) of Regulation EC 714/2009

Development of

Framework

Guidelines

(FWGL)

Development of

network code

Assessment,

agreement &

entry into force

… through a collaborative process

Benefits

Security of supply

Competitiveness

Sustainability

Enabling renewables

Creating clear connection

rules.

Providing harmonisation

to benefit manufacturers.

Creating markets to

reduce risks.

Ensuring security of

supply

A coordinated approach to

system operations.

Greater optimisation to

enhance efficiency.

More flexible markets (e.g. balancing).

Enhancing competition

A single market design across Europe (in all timescales).

Promoting cross border

trade & enhancing liquidity.

Reducing risk for all market

players

Overview of current & future network codes

• Requirements for Generators (RfG)

• Demand Connection Code (DCC)

• HVDC Connection Code (HVDC)

Grid Connection

Related Codes

• Operational Security Network (OS)

• Operational Planning & Scheduling (OPS)

• Load Frequency Control & Reserves (LFCR)

• Operational Procedures in an Emergency (EP)

System Operation

Related Codes

• Capacity Allocation & Congestion Management(CACM)

• Forward Capacity Allocation (FCA)

• Balancing Network Code (EB)

Market Related Codes

Order of work

Through a ‘Priority List’ agreed upon through consultationDecided by the EC

ENTSO-E’s Three- Year Work PlanInfluenced by and informs

HVDC High Voltage Direct Current Connection requirements

EB Electricity Balancing

FCA Forward Capacity Allocation

LFCR Load Frequency Control and Reserves

OPS Operational Planning and Scheduling

OS Operational Security

DCC Demand Connection Code

CACM Capacity Allocation and Congestion Management

RfG Requirement for Generators

Therefore current

network codes are developed in this order

The jigsaw that is network codes

CACM

Network

Codes

FCA

EB

DCC

RfG

HVDC

EP

OS

OPS

LFCR

Grid connection related network codes

DCC

Both linked to energy efficiency directive

RfG

All connection

codes linked to existing standards

All connection

codes link to EB

HVDC

All connection codes link

to OS

Linked to smart grid initiatives

through DSR

• RfG was developed first

• Followed by DCC

• Next is HVDC

• These codes link into (and

are influenced by) several

important policy areas

• And are also related to

existing standards

Some of the more substantial

links to other codes are:

• Electricity Balancing and

• Operational Security

System operation related network codes

EPLFCR/OS/

OPS all linked

OSLFCR closely linked to EB

OPS

OPS/OS link to CC due to

CGM

LFCR

OS links to all

connection codes

• Operational Security was first

• Closely followed by Operational

Planning & Scheduling

• Next is Load Frequency Control &

Reserves

• They will be followed later by

Emergency Procedures

The operational codes have strong

links between themselves and to other

codes:

• OS links to all connection codes

• LFCR is closely tied to EB

• All the operational codes are linked

• OS and OPS are linked to the CC

part of CACM (because of the

Common Grid Model).

DAID CC

Market related network codes

CACM• Capacity Allocation and Congestion

Management was the first market

code to be developed

• It contains three main subsections

that were merged at an early stage:

• Intraday (ID)

• Day Ahead (DA)

• Capacity Calculation (CC)

• This was done to ensure

consistency between these heavily

interrelated areas

• The CACM code is based on the EU

wide “Target Model” for market

design.

Market related network codes

IDDA/ID link to

EC Governance

guideline

DA

CC link to OS/OPS due

to CGM

CC

All market codes link to transparency

regulation

FCA

FCA Linked to MIFID

EB


to EB • Capacity Allocation and Congestion

Management was the first market code

to be developed

• Followed by Forward Capacity Allocation

• And Electricity Balancing

• All market related codes tie into

transparency regulation

• Day Ahead & Intraday are closely linked

to the EC Governance Guideline

• FCA links to financial regulation

These codes have direct links to others:

• EB to all connection codes

• Also to LFCR operational code

• Capacity Calculation links to both OS

and OPS

EB closely linked to

LFCR

Network code overviewHow do all the network codes fit together?

Network

CodesID

DA/ID link to

Governanceguideline

DA

CC

All market codes link to transparency regulation

FCA

FCA Linked to MIFID

EB

DCC


RfG

All connection

codes linked to existing

standards

HVDC

Linked to smart grid initiatives through

DSR


to EB

All connectioncodes link

to OS


to CGM

LFCR closely

linked to EBOS

OPS EP

LFCR

LFCR/OS closely linked

DA

Of course this is not exhaustive.

There are further extensive links between codes…

Network

CodesID

DA/ID link to Governance guideline

DA

CC

All market codes link to transparency regulation

FCA

FCA Linked to MIFID

EB

DCC


RfG

All connection

codes linked to existing standards

HVDC

Linked to smart grid initiatives through

DSR


to EB


to OS


to CGM

LFCR closely linked to EB OS

OPS EP

LFCR

LFCR/OS/ OPS all linked

Network Code on:

Requirements for Generators

6 Months 12 Months 3 Months > 12 Months

Framework Guidelines DraftingInternal

Approval

Public

ConsultationUpdating

Internal

ApprovalACER Opinion Comitology Process ….

Scoping Development Approval

Code Overview

Purpose: Provide a set of coherent requirements for

generators (of all sizes) in order to meet the future power

system challenges.

Status: An ACER recommendation to adopt the code was

made on 27 March 2013. The EC is currently preparing the

network code for entry into Comitology.

Contents:

• Requirements

• Operational Notification Procedure for Connection

• Compliance

• Derogations

Links to other codes/ areas

• DCC – Balances demand and

generation requirements and

uses similar processes..

• HVDC – Reference to part of the

RfG requirements for offshore

HVDC connected generation.

Coherence in processes.

• OS – Technical requirements to

strengthen coordination and

system security.

• EB – Must ensure RfG

characteristics are reflected in

products.

Network Code on:

Capacity Allocation and Congestion Management



Approval

Public


Internal



Code Overview

Purpose: Translate the vision for a pan European Target

Model into a binding set of rules.

Status: An ACER recommendation to adopt the code and

proposals for change was made on 14 March 2013. The EC is

currently preparing the network code for the Comitology

process.

Contents:

• Capacity Calculation

• Bidding Zones

• Day Ahead Markets

• Intraday Markets

• Remedial Actions

• Firmness rules

• Cost recovery

Links to other codes/areas

• OS/OPS – Build on the CGM in

CACM.

• FCA – Bidding zones and

capacity calculation are common.

Structure is similar.

• EB – Strong link with intraday

markets and common capacity

calculation, bidding zones &

structure.

• OPS – Schedules are relevant in

day ahead markets.

• Transparency regulation – Vital

to efficient market functioning.

Network Code on:

Operational Security



Approval

Public


Internal



Code Overview

Purpose: To set common rules for ensuring the operational

security of the pan- European power system.

Status: ENTSO-E has amended the network code in light of

the ACER reasoned opinion and resubmitted it to ACER in late

September. ACER will now assess the code.

Contents:

• Operational Security Requirements

• Testing and Investigation

• Data Exchange

• Training

• Compliance

• Staff Training


• OPS – Is an extension of the

OS code prior to real time.

• LFCR – Frequency control

operations uses the

coordinated schedules from

OPS.

• RfG/DCC – Contain technical

requirements to strengthen

coordination and system

security.

• CACM – Capacity calculation

uses a common grid model as

does OS.

Network Code on:

Operational Planning & Scheduling



ApprovalPublic


Internal Approval

ACER Opinion Comitology Process ….


Code Overview

Purpose: Sets requirements, ranging from the year ahead

timeframe to real time, for assessing the adequacy and

operational security of the interconnected power system and

for planning outages required by TSO’s and grid users when

they have cross-border impacts on power flows.

Status: ENTSO-E has amended the network code in light of

the ACER reasoned opinion and resubmitted it to ACER in late

September. ACER will now assess the code

Contents:

• Data For Operational Security Analysis in Operational

Planning

• Operational Security Analysis in Operational Planning

• Outage Planning, Adequacy, Ancillary Services, Scheduling

• ENTSO-E Operational Planning Data Environment


• OS – Extension of OS

requirements prior to real time. .

• CACM – An overlap with

schedules in day ahead markets

and the Common Grid Model.

• Market Codes – Planning and

scheduling cooperation will

unlock transmission capacity in

the forward, DA, ID and –

indirectly – balancing.

• LFCR – Frequency control

operations: uses the coordinated

schedules from the OPS.

Network Code on:

Demand Connection



ApprovalPublic


Internal Approval

ACER Opinion Comitology Process ….


Code Overview

Purpose: To set requirements for new demand users and DSO

connections and to outline demand side response

requirements related to system frequency.

Status: An ACER opinion and recommendation to adopt the

code was made on 27 March 2013. The EC is currently

preparing the code for entry into the Comitology process.

Contents:

• Requirements

• Operational Notification Procedure

• Compliance

• Derogations


• RfG/ HVDC – Balance between

demand and generation

requirements and coherence in

processes.

• LFCR – Impact of DSR SFC on

system reserve calculations.

• OS – Technical requirements to

strengthen coordination and

enhance system security.

• EB – Demand Response will be

an ever more needed building

block in balancing products.

• Ecodesign/labelling Directive

– Vehicle to develop DSR

requirements.

• Cenelec M490 – Work on-going

to develop DSR standards.

Network Code on:

Forward Capacity Allocation



Approval

Public


Internal



Code Overview

Purpose: To set rules for calculating and buying capacity in

timescales before day ahead and for hedging price risk between

bidding zones.

Status: ENTSO-E will submit the network code to ACER in late

September 2013

Contents:

• Governance

• Capacity Calculation for FCA

• Bidding Zones

• The Forward Capacity Market

• Single Platforms for Allocation and Secondary Trading

• Allocation Rules

• Firmness and Congestion Income Distribution


• CACM – Similar processes and

consistency with capacity

calculation.

• MIFID – Sets capital and

organisational requirements for

investment firms and markets

operators when dealing with

financial instruments/impact on

TSOs and joint platforms.

• Transparency Regulation –

Impacts on the information that

is published.

Network Code on:

Load Frequency Control and Reserves



Approval

Public


Internal



Code Overview

Purpose: To set out coordinated and clearly specified load

frequency control processes and rules regarding the levels and

location of reserves (back-up) which TSOs need to hold.

Status: The ACER opinion is due on 25 September 2013.

Contents:

• Frequency Quality

• Load Frequency Control Structure

• Frequency Containment Reserves

• Frequency Restoration Reserves

• Replacement Reserves

• Exchange and Sharing of Reserves

• Co-operation with DSOs, Compliance


• EB – Specifies how the reserves

determined under LFC will be

procured.

• OS – Frequency quality;

deviation management; improves

operational security.

• OPS – Frequency control

operations: uses the coordinated

schedules from the OPS.

• DCC – Impact of DSR SFC on

system reserve calculations.

• CACM – Operational limits: have

an impact on transmission

capacity available for XB

exchanges.

• HVDC – Impact of loss of power

(e.g. from an offshore wind farm)

on system reserves.

Network Code on:

Balancing



Approval

Public


Internal



Code Overview

Purpose: To define rules for the development, implementation

and operation of a pan-European balancing market.

Status: Over 2100 from 42 organisations were received via the

public consultation which ended in mid August. ENTSO-E is

now updating the code for delivery in December.

Contents:

• The Electricity Balancing System

• Procurement of Balancing Reserves

• Use; Allocation and Reservation of Cross Zonal Capacity

for Balancing Reserves

• Settlement

• Balancing Algorithm Development

• Reporting, Transitional Arrangements


• LFCR – Strong link with LFCR

setting rules for the volume of

reserves to be procured & BAL

creating rules to procure them.

• CACM – Overlap with capacity

calculation and links to intraday

markets (which close before

balancing opens).

• RfG/DCC – Important that

connection rules are reflected in

products available on balancing

markets.

Network Code on:

HVDC Connection



Approval

Public


Internal



Code Overview

Purpose: Sets requirements for HVDC connections and

offshore DC connected generation.

Status: A Public Consultation on the Preliminary Scope

finished on 7 June 2013. ENTSO-E is continuing to work with

stakeholders to produce a draft; which will be consulted on in

November.

Contents: Requirements for long distance DC connections,

links between different synchronous area’s or DC connected

Power Park Modules such as offshore wind farms,


• RfG – Reference to part of the

RfG requirements for offshore

HVDC connected generation.

Coherence in processes.

• OS – Technical requirements

supporting frequency and

voltage stability, system stability

robustness and system security.

• LFCR – Impact of loss of power

(e.g. from an offshore wind farm)

on system reserves.

• EB – Ensure balancing

capabilities for reserve

transactions across cross-border

HVDC links where relevant.

• DCC – Coherence in processes

(operational notification,

derogations, …)

More info: http://networkcodes.entsoe.eu/

Please address any questions to:

[email protected]

Date post:	04-Jun-2018
Category:	Documents
Upload:	lehanh
View:	225 times
Download:	0 times

An Introduction to Network Codes & Stakeholder engagement codes documents/Genera… · An...

Documents