European platform for the exchange of balancing energy from replacement reserves
1. By six months after entry into force of this Regulation, all TSOs performing the reserve replacement process pursuant to Part IV of Regulation (EU) 2017/1485 shall develop a proposal for the implementation framework for a European platform for the exchange of balancing energy from replacement reserves.
2. The European platform for the exchange of balancing energy from replacement reserves, operated by TSOs or by means of an entity the TSOs would create themselves, shall be based on common governance principles and business processes and shall consist of at least the activation optimisation function and the TSO-TSO settlement function. That European platform shall apply a multilateral TSO-TSO model with common merit order lists to exchange all balancing energy bids from all standard products for replacement reserves, except for unavailable bids pursuant to Article 29(14).
3. The proposal in paragraph 1 shall include at least:
(a)
the high level design of the European platform;
(b)
the roadmap and timelines for the implementation of the European platform;
(c)
the definition of the functions required to operate the European platform;
(d)
the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;
(e)
the proposed designation of the entity or entities that will perform the functions defined in the proposal. Where the TSOs propose to designate more than one entity, the proposal shall demonstrate and ensure:
(i)
a coherent allocation of the functions to the entities operating the European platform. The proposal shall take full account of the need to coordinate the different functions allocated to the entities operating the European platform;
(ii)
that the proposed setup of the European platform and allocation of functions ensures efficient and effective governance, operation and regulatory oversight of the European platform as well as, supports the objectives of this Regulation;
(iii)
an effective coordination and decision making process to resolve any conflicting positions between entities operating the European platform;
(f)
the framework for harmonisation of the terms and conditions related to balancing set up pursuant to Article 18;
(g)
the detailed principles for sharing the common costs, including the detailed categorisation of common costs, in accordance with Article 23;
(h)
the balancing energy gate closure time for all standard products for replacement reserves in accordance with Article 24;
(i)
the definition of standard products for balancing energy from replacement reserves in accordance with Article 25;
(j)
the TSO energy bid submission gate closure time in accordance with Article 29( 13);
(k)
the common merit order lists to be organised by the common activation optimisation function pursuant to Article 31;
(l)
the description of the algorithm for the operation of the activation optimisation function for the balancing energy bids from all standard products for replacement reserves in accordance with Article 58.
4. By six months after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from replacement reserves, all TSOs performing the reserve replacement process pursuant to Part IV of Regulation (EU) 2017/1485 shall designate the proposed entity or entities entrusted with operating the European platform pursuant to paragraph 3(e).
5. By one year after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from replacement reserves, all TSOs performing the reserve replacement process pursuant to Part IV of Regulation (EU) 2017/1485 and that have at least one interconnected neighbouring TSO performing the replacement reserves process shall implement and make operational the European platform for the exchange of balancing energy from replacement reserves. They shall use the European platform to:
(a)
submit all balancing energy bids from all standard products for replacement reserves;
(b)
exchange all balancing energy bids from all standard products for replacement reserves, except for unavailable bids pursuant to Article 29(14);
(c)
strive to fulfil all their needs for balancing energy from replacement reserves.
European platform for the exchange of balancing energy from frequency restoration reserves with manual activation
1. By one year after entry into force of this Regulation, all TSOs shall develop a proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with manual activation.
2. The European platform for the exchange of balancing energy from frequency restoration reserves with manual activation, operated by TSOs or by means of an entity the TSOs would create themselves, shall be based on common governance principles and business processes and shall consist of at least the activation optimisation function and the TSO-TSO settlement function. This European platform shall apply a multilateral TSO-TSO model with common merit order lists to exchange all balancing energy bids from all standard products for frequency restoration reserves with manual activation, except for unavailable bids pursuant to Article 29(14).
3. The proposal in paragraph 1 shall include at least:
(a)
the high level design of the European platform;
(b)
the roadmap and timelines for the implementation of the European platform;
(c)
the definition of the functions required to operate the European platform;
(d)
the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;
(e)
the proposed designation of the entity or entities that will perform the functions defined in the proposal. Where the TSOs propose to designate more than one entity, the proposal shall demonstrate and ensure:
(i)
a coherent allocation of the functions to the entities operating the European platform. The proposal shall take full account of the need to coordinate the different functions allocated to the entities operating the European platform;
(ii)
that the proposed setup of the European platform and allocation of functions ensures efficient and effective governance, operation and regulatory oversight of the European platform as well as, supports the objectives of this Regulation;
(iii)
an effective coordination and decision making process to resolve any conflicting positions between entities operating the European platform;
(f)
the framework for harmonisation of the terms and conditions related to balancing set up pursuant to Article 18;
(g)
the detailed principles for sharing the common costs, including the detailed categorisation of common costs, in accordance with Article 23;
(h)
the balancing energy gate closure time for all standard products for frequency restoration reserves with manual activation in accordance with Article 24;
(i)
the definition of standard products for balancing energy from frequency restoration reserves with manual activation in accordance with Article 25;
(j)
the TSO energy bid submission gate closure time in accordance with Article 29( 13);
(k)
the common merit order lists to be organised by the common activation optimisation function pursuant to Article 31;
(l)
the description of the algorithm for the operation of the activation optimisation function for the balancing energy bids from all standard products for frequency restoration reserves with manual activation in accordance with Article 58.
4. By six months after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with manual activation, all TSOs shall designate the proposed entity or entities entrusted with operating the European platform pursuant to paragraph 3(e).
5. By eighteen months after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with manual activation, all TSOs may develop a proposal for modification of the European platform for the exchange of balancing energy from frequency restoration reserves with manual activation pursuant to paragraph 1. Proposed modifications shall be supported by a cost-benefit analysis performed by all TSOs pursuant to Article 61. The proposal shall be notified to the Commission.
6. By thirty months after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with manual activation, or where all TSOs submit a proposal for modification of the European platform pursuant to paragraph 5, by 12 months after the approval of the proposal for modification of the European platform, all TSOs shall implement and make operational the European platform for the exchange of balancing energy from frequency restoration reserves with manual activation and they shall use the European platform to:
(a)
submit all balancing energy bids from all standard products for frequency restoration reserves with manual activation;
(b)
exchange all balancing energy bids from all standard products for frequency restoration reserves with manual activation, except for unavailable bids pursuant to Article 29(14);
(c)
strive to fulfil all their needs for balancing energy from the frequency restoration reserves with manual activation.
European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation
1. By one year after entry into force of this Regulation, all TSOs shall develop a proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation.
2. The European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation, operated by TSOs or by means of an entity the TSOs would create themselves, shall be based on common governance principles and business processes and shall consist of at least the activation optimisation function and the TSO-TSO settlement function. This European platform shall apply a multilateral TSO-TSO model with common merit order lists to exchange all balancing energy bids from all standard products for frequency restoration reserves with automatic activation, except for unavailable bids pursuant to Article 29(14).
3. The proposal in paragraph 1 shall include at least:
(a)
the high level design of the European platform;
(b)
the roadmap and timelines for the implementation of the European platform;
(c)
the definition of the functions required to operate the European platform;
(d)
the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;
(e)
the proposed designation of the entity or entities that will perform the functions defined in the proposal. Where the TSOs propose to designate more than one entity, the proposal shall demonstrate and ensure:
(i)
a coherent allocation of the functions to the entities operating the European platform. The proposal shall take full account of the need to coordinate the different functions allocated to the entities operating the European platform;
(ii)
that the proposed setup of the European platform and allocation of functions ensures efficient and effective governance, operation and regulatory oversight of the European platform as well as supports the objectives of this Regulation;
(iii)
an effective coordination and decision making process to resolve any conflicting positions between entities operating the European platform;
(f)
the framework for harmonisation of the terms and conditions related to balancing set up pursuant to Article 18;
(g)
the detailed principles for sharing the common costs, including the detailed categorisation of common costs, in accordance with Article 23;
(h)
the balancing energy gate closure time for all standard products for frequency restoration reserves with automatic activation in accordance with Article 24;
(i)
the definition of standard products for balancing energy from frequency restoration reserves with automatic activation in accordance with Article 25;
(j)
the TSO energy bid submission gate closure time in accordance with Article 29( 13);
(k)
the common merit order lists to be organised by the common activation optimisation function pursuant to Article 31;
(l)
the description of the algorithm for the operation of the activation optimisation function for the balancing energy bids from all standard products for frequency restoration reserves with automatic activation in accordance with Article 58.
4. By six months after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation, all TSOs shall designate the proposed entity or entities entrusted with operating the European platform pursuant to paragraph 3(e).
5. By eighteen months after the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation, all TSOs may develop a proposal for modification of the European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation pursuant to paragraph 1 and of the principles set in paragraph 2. Proposed modifications shall be supported by a cost-benefit analysis performed by the all TSOs pursuant to Article 61. The proposal shall be notified to the Commission.
6. By thirty months from the approval of the proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation, or where all TSOs submit a proposal for modification of the European platform pursuant to paragraph 5, by 12 months after the approval of the proposal for modification of the European platform, all TSOs performing the automatic frequency restoration process pursuant to Part IV of Regulation (EU) 2017/1485 shall implement and make operational the European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation and they shall use the European platform to:
(a)
submit all balancing energy bids from all standard products for frequency restoration reserves with automatic activation;
(b)
exchange all balancing energy bids from all standard products for frequency restoration reserves with automatic activation, except for unavailable bids pursuant to Article 29(14);
(c)
strive to fulfil all their needs for balancing energy from the frequency restoration reserves with automatic activation.
European platform for imbalance netting process
1. By six months after entry into force of this Regulation, all TSOs shall develop a proposal for the implementation framework for a European platform for the imbalance netting process.
2. The European platform for the imbalance netting process, operated by TSOs or by means of an entity the TSOs would create themselves, shall be based on common governance principles and business processes and shall consist of at least the imbalance netting process function and the TSO-TSO settlement function. The European platform shall apply a multilateral TSO-TSO model to perform the imbalance netting process.
3. The proposal in paragraph 1 shall include at least:
(a)
the high level design of the European platform;
(b)
the roadmap and timelines for the implementation of the European platform;
(c)
the definition of functions required to operate the European platform;
(d)
the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;
(e)
the proposed designation of the entity or entities that will perform the functions defined in the proposal. Where the TSOs propose to designate more than one entity, the proposal shall demonstrate and ensure:
(i)
a coherent allocation of the functions to the entities operating the European platform. The proposal shall take full account of the need to coordinate the different functions allocated to the entities operating the European platform;
(ii)
that the proposed setup of the European platform and allocation of functions ensures efficient and effective governance, operation and regulatory oversight of the European platform as well as supports the objectives of this Regulation;
(iii)
an effective coordination and decision making process to resolve any conflicting positions between entities operating the European platform;
(f)
the framework for harmonisation of the terms and conditions related to balancing set up pursuant to Article 18;
(g)
the detailed principles for sharing the common costs, including the detailed categorisation of common costs, in accordance with Article 23;
(h)
the description of the algorithm for the operation of imbalance netting process function in accordance with Article 58.
4. By six months after the approval of the proposal for the implementation framework for a European platform for the imbalance netting process, all TSOs shall designate the proposed entity or entities entrusted with operating the European platform pursuant to paragraph 3(e).
5. By one year after the approval of the proposal for the implementation framework for a European platform for the imbalance netting process, all TSOs performing the automatic frequency restoration process pursuant to Part IV of Regulation (EU) 2017/1485 shall implement and make operational the European platform for the imbalance netting process. They shall use the European platform to perform the imbalance netting process, at least for the Continental Europe synchronous area.
Cost sharing between TSOs in different Member States
1. All TSOs shall provide a yearly report to the relevant regulatory authorities in accordance with Article 37 of Directive 2009/72/EC in which the costs of establishing, amending and operating the European platforms pursuant to Articles 19, 20, 21 and 22 are explained in detail. This report shall be published by the Agency taking due account of sensitive commercial information.
2. The costs referred to in paragraph 1 shall be broken down into:
(a)
common costs resulting from coordinated activities of all TSOs participating in the respective platforms;
(b)
regional costs resulting from activities of several but not all TSOs participating in the respective platforms;
(c)
national costs resulting from activities of the TSOs in that Member State participating in the respective platforms.
3. Common costs referred to in paragraph 2(a) shall be shared among the TSOs in the Member States and third countries participating in the European platforms. To calculate the amount to be paid by the TSOs in each Member State and, if applicable, third country, one eighth of the common cost shall be divided equally between each Member State and third country, five eighths shall be divided between each Member State and third country proportionally to their consumption, and two eighths shall be divided equally between the participating TSOs pursuant to paragraph 2(a). The Member State's share of the costs shall be borne by the TSO or TSOs operating in a territory of that Member State. In case several TSOs are operating in a Member State, the Member State's share of the costs shall be distributed among those TSOs proportionally to the consumption in the TSOs control areas.
4. To take into account changes in the common costs or changes in the participating TSOs, the calculation of common costs shall be regularly adapted.
5. TSOs cooperating in a certain region shall jointly agree on a proposal for the sharing of regional costs in accordance with paragraph 2(b). The proposal shall then be individually approved by the relevant regulatory authorities of each of the Member States and, if applicable, third country in the region. TSOs cooperating in a certain region may alternatively use the cost sharing arrangements set out in paragraph 3.
6. The cost sharing principles shall apply to costs contributing to the establishing, amending and operating the European platforms from the approval of the proposal for the relevant implementation frameworks pursuant to Articles 19(1), 20(1), 21(1) and 22(1). In case the implementation frameworks propose that existing projects shall evolve into a European platform, all TSOs participating in the existing projects may propose that a share of the costs incurred before the approval of the proposal for the implementation frameworks directly related to the development and implementation of this project and assessed as reasonable, efficient and proportionate is considered as part of the common costs pursuant to paragraph 2(a).
Balancing energy gate closure time
1. As part of the proposals pursuant to Articles 19, 20 and 21, all TSOs shall harmonise the balancing energy gate closure time for standard products at the Union level, at least for each of the following processes:
(a)
replacement reserves;
(b)
frequency restoration reserves with manual activation;
(c)
frequency restoration reserves with automatic activation.
2. Balancing energy gate closure times shall:
(a)
be as close as possible to real time;
(b)
not be before the intraday cross-zonal gate closure time;
(c)
ensure sufficient time for the necessary balancing processes.
3. After the balancing energy gate closure time, the balancing service providers shall no longer be permitted to submit or update their balancing energy bids.
4. After the balancing energy gate closure time, balancing service providers shall report to the connecting TSO any unavailable volumes of balancing energy bids without undue delay in accordance to 158(4)(b) and 161(4)(b) of Regulation (EU) 2017/1485. If the balancing service provider has a connection point to a DSO, and if required by the DSO, the balancing service provider shall also report any unavailable volumes of balancing energy bids to the DSO without undue delay.
5. By two years after entry into force of this Regulation, each TSO applying a central dispatching model shall define at least one integrated scheduling process gate closure time which shall:
(a)
enable balancing service providers to update their integrated scheduling bids as close as possible to real time;
(b)
be no longer than eight hours before real-time;
(c)
be set before the TSO energy bid submission gate closure time.
6. After each integrated scheduling process gate closure time, the integrated scheduling process bid may only be changed in accordance with the rules defined by the connecting TSO in the terms and conditions for balancing service providers set up pursuant to Article 18. Those rules shall be implemented before the connecting TSO joins any process for the exchange of balancing energy and shall allow balancing service providers to update their integrated scheduling bids to the extent possible until the intraday cross-zonal gate closure time, while ensuring:
(a)
the economic efficiency of the integrated scheduling process;
(b)
operational security;
(c)
consistency of all iterations of the integrated scheduling process;
(d)
fair and equal treatment of all balancing service providers in the scheduling area;
(e)
no negative effect on the integrated scheduling process.
7. Each TSO applying a central dispatching model shall establish the rules for using the integrated scheduling process bids prior to the balancing energy gate closure time in accordance with Article 18( 8) (c) in order to:
(a)
ensure that the TSO meets its reserve capacity requirements in real time;
(b)
ensure sufficient resources to solve internal congestions;
(c)
ensure the possibility of feasible dispatching of power generating facilities and demand facilities in real time.
Requirements for standard products
1. Standard products for balancing energy shall be developed as part of the proposals for the implementation frameworks for the European platforms pursuant to Articles 19, 20 and 21. After the approval of each implementation framework and no later than the time when a TSO uses the respective European platform, the TSO shall use only standard and, where justified, specific balancing energy products in order to maintain the system's balance in accordance with Article 127, Article 157 and Article 160 of Regulation (EU) 2017/1485.
2. By two years after entry into force of this Regulation, all TSOs shall develop a proposal for a list of standard products for balancing capacity for frequency restoration reserves and replacement reserves.
3. At least every two years, all TSOs shall review the list of standard products for balancing energy and balancing capacity. The review of standard products shall take into account:
(a)
the objectives set out in Article 3( 1);
(b)
if applicable, proposed changes to the list of standard products and the number of common merit order lists pursuant to Article 31( 2);
(c)
the performance indicators set out in Article 59( 4).
4. The list of standard products for balancing energy and balancing capacity may set out at least the following characteristics of a standard product bid:
(a)
preparation period;
(b)
ramping period;
(c)
full activation time;
(d)
minimum and maximum quantity;
(e)
deactivation period;
(f)
minimum and maximum duration of delivery period;
(g)
validity period;
(h)
mode of activation.
5. The list of standard products for balancing energy and balancing capacity shall set out at least the following variable characteristics of a standard product to be determined by the balancing service providers during the prequalification or when submitting the standard product bid:
(a)
price of the bid;
(b)
divisibility;
(c)
location;
(d)
minimum duration between the end of deactivation period and the following activation.
6. Standard products for balancing energy and balancing capacity shall:
(a)
ensure an efficient standardisation, foster cross-border competition and liquidity, and avoid undue market fragmentation;
(b)
facilitate the participation of demand facility owners, third parties and owners of power generating facilities from renewable energy sources as well as owners of energy storage units as balancing service providers.
Requirements for specific products
1. Following the approval of the implementation frameworks for the European platforms pursuant to Articles 19, 20 and 21, each TSO may develop a proposal for defining and using specific products for balancing energy and balancing capacity. This proposal shall include at least:
(a)
a definition of specific products and of the time period in which they will be used;
(b)
a demonstration that standard products are not sufficient to ensure operational security and to maintain the system balance efficiently or a demonstration that some balancing resources cannot participate in the balancing market through standard products;
(c)
a description of measures proposed to minimise the use of specific products subject to economic efficiency;
(d)
where applicable, the rules for converting the balancing energy bids from specific products into balancing energy bids from standard products;
(e)
where applicable, the information on the process for the conversion of balancing energy bids from specific products into balancing energy bids from standard products and the information on which common merit order list the conversion will take place;
(f)
a demonstration that the specific products do not create significant inefficiencies and distortions in the balancing market within and outside the scheduling area.
2. Each TSO using specific products shall review at least once every two years the necessity to use specific products in accordance with the criteria laid down in paragraph 1.
3. The specific products shall be implemented in parallel to the implementation of the standard products. Following the use of the specific products, the connecting TSO may alternatively:
(a)
convert the balancing energy bids from specific products into balancing energy bids from standard products;
(b)
activate the balancing energy bids from specific products locally without exchanging them.
4. The rules for converting balancing energy bids from specific products into balancing energy bids from standard products pursuant to paragraph 1(d) shall:
(a)
be fair, transparent and non-discriminatory;
(b)
not create barriers for the exchange of balancing services;
(c)
ensure the financial neutrality of TSOs.
Conversion of bids in a central dispatching model
1. Each TSO applying a central dispatching model shall use the integrated scheduling process bids for the exchange of balancing services or for the sharing of reserves.
2. Each TSO applying a central dispatching model shall use the integrated scheduling process bids available for the real time management of the system to provide balancing services to other TSOs, while respecting operational security constraints.
3. Each TSO applying a central dispatching model shall convert as far as possible the integrated scheduling process bids pursuant to paragraph 2 into standard products taking into account operational security. The rules for converting the integrated scheduling process bids into standard products shall:
(a)
be fair, transparent and non-discriminatory;
(b)
not create barriers for the exchange of balancing services;
(c)
ensure the financial neutrality of TSOs.
Fall-back procedures
1. Each TSO shall ensure that fall-back solutions are in place in case the procedures referred to in paragraphs 2 and 3 fail.
2. Where the procurement of balancing services fails, the concerned TSOs shall repeat the procurement process. TSOs shall inform market participants that fall-back procedures will be used as soon as possible.
3. Where the coordinated activation of balancing energy fails, each TSO may deviate from the common merit order list activation and shall inform market participants as soon as possible.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
