Article 32–Article 34 · 3 articles
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Procurement rules
1. All TSOs of the LFC block shall regularly and at least once a year review and define the reserve capacity requirements for the LFC block or scheduling areas of the LFC block pursuant to dimensioning rules as referred in Articles 127, 157 and 160 of Regulation (EU) 2017/1485. Each TSO shall perform an analysis on optimal provision of reserve capacity aiming at minimisation of costs associated with the provision of reserve capacity. This analysis shall take into account the following options for the provision of reserve capacity:
(a)
procurement of balancing capacity within control area and exchange of balancing capacity with neighbouring TSOs, when applicable;
(b)
sharing of reserves, when applicable;
(c)
the volume of non-contracted balancing energy bids which are expected to be available both within their control area and within the European platforms taking into account the available cross-zonal capacity.
2. Each TSO procuring balancing capacity shall define the rules for the procurement of balancing capacity in the proposal for the terms and conditions related to balancing service providers developed pursuant to Article 18. The rules for the procurement of balancing capacity shall comply with the following principles:
(a)
the procurement method shall be market-based for at least the frequency restoration reserves and the replacement reserves;
(b)
the procurement process shall be performed on a short-term basis to the extent possible and where economically efficient;
(c)
the contracted volume may be divided into several contracting periods.
3. The procurement of upward and downward balancing capacity for at least the frequency restoration reserves and the replacement reserves shall be carried out separately. Each TSO may submit a proposal to the relevant regulatory authority in accordance with Article 37 of Directive 2009/72/EC requesting the exemption to this requirement. The proposal for exemption shall include:
(a)
specification of the time period during which the exemption would apply;
(b)
specification of the volume of balancing capacity for which the exemption would apply;
(c)
analysis of the impact of such an exemption on the participation of balancing resources pursuant to Article 25(6)(b);
(d)
justification for the exemption demonstrating that such an exemption would lead to higher economic efficiency.
Exchange of balancing capacity
1. Two or more TSOs exchanging or mutually willing to exchange balancing capacity shall develop a proposal for the establishment of common and harmonised rules and processes for the exchange and procurement of balancing capacity while respecting the requirements set out in Article 32.
2. Except in cases where the TSO-BSP model is applied pursuant to Article 35, the exchange of balancing capacity shall always be performed based on a TSO-TSO model whereby two or more TSOs establish a method for the common procurement of balancing capacity taking into account the available cross-zonal capacity and the operational limits defined in Chapters 1 and 2 of Part IV Title VIII of Regulation (EU) 2017/1485.
3. All TSOs exchanging balancing capacity shall submit all balancing capacity bids from standard products to the capacity procurement optimisation function. TSOs shall not modify or withhold any balancing capacity bids and shall include them in the procurement process, except under conditions set out in Article 26 and Article 27.
4. All TSOs exchanging balancing capacity shall ensure both the availability of cross-zonal capacity and that the operational security requirements set out in Regulation (EU) 2017/1485 are met, either by:
(a)
the methodology for calculating the probability of available cross-zonal capacity after intraday cross-zonal gate closure time pursuant to paragraph 6;
(b)
the methodologies for allocating cross-zonal capacity to the balancing timeframe pursuant to Chapter 2 of Title IV.
5. Each TSO using the methodology for calculating the probability of available cross-zonal capacity after intraday cross-zonal gate closure time shall inform other TSOs in their LFC block of the risk of unavailability of reserve capacity in the scheduling area or areas of its control area that may affect the fulfilment of the requirements pursuant to Article 157(2)(b) of Regulation (EU) 2017/1485.
6. TSOs exchanging balancing capacity for frequency restoration reserves and replacement reserves may develop a proposal for a methodology for calculating the probability of available cross-zonal capacity after intraday cross-zonal gate closure time. The methodology shall at least describe:
(a)
the procedures to notify to other TSOs in the LFC block;
(b)
the description of the process to perform the assessment for the relevant period for the exchange of balancing capacity;
(c)
the method to assess the risk of unavailability of cross-zonal capacity due to planned and unplanned outages and due to congestions;
(d)
the method to assess the risk of insufficient reserve capacity due to unavailability of cross-zonal capacity;
(e)
the requirements for a fall-back solution in case of unavailability of cross-zonal capacity or insufficient reserve capacity;
(f)
the requirements for ex-post review and monitoring of risks;
(g)
the rules in order to ensure the settlement pursuant to Title V.
7. TSOs shall not increase the reliability margin calculated pursuant to Regulation (EU) 2015/1222 due to the exchange of balancing capacity for frequency restoration reserves and replacement reserves.
Transfer of balancing capacity
1. Within the geographical area in which the procurement of balancing capacity has taken place, the TSOs shall allow balancing service providers to transfer their obligations to provide balancing capacity. The concerned TSO or TSOs may request an exemption where contracting periods for balancing capacity pursuant to Article 32(2)(b) are strictly less than one week.
2. The transfer of balancing capacity shall be allowed at least until one hour before the start of the delivery day.
3. The transfer of balancing capacity shall be allowed if the following conditions are met:
(a)
the receiving balancing service provider has passed the qualification process for the balancing capacity for which the transfer is performed;
(b)
the transfer of balancing capacity is not expected to endanger operational security;
(c)
the transfer of balancing capacity does not exceed the operational limits set out in Chapters 1 and 2 of Part IV Title VIII of Regulation (EU) 2017/1485.
4. In case the transfer of balancing capacity requires the use of cross-zonal capacity, such transfer shall only be allowed in case:
(a)
the cross-zonal capacity required to perform the transfer is already available from previous allocation processes pursuant to Chapter 2 of Title IV;
(b)
the cross-zonal capacity is available pursuant to the methodology for calculating the probability of available cross-zonal capacity after intraday cross-zonal gate closure time in accordance with Article 33(6).
5. If a TSO does not allow the transfer of balancing capacity, the concerned TSO shall explain the reason for the rejection to the balancing service providers involved.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
