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Commission Regulation (EU) 2016/631 Article 39

Commission Regulation (EU) 2016/631 Article 39

Principles of cost-benefit analysis

Article 39

1.   Power-generating facility owners and DSOs including CDSOs shall assist and contribute to the cost-benefit analysis undertaken according to Articles 38 and 63 and provide the necessary data as requested by the relevant system operator or relevant TSO within three months of receiving a request, unless agreed otherwise by the relevant TSO. For the preparation of a cost-benefit-analysis by a power-generating facility owner, or prospective owner, assessing a potential derogation pursuant to Article 62, the relevant TSO and DSO, including CDSO, shall assist and contribute to the cost-benefit analysis and provide the necessary data as requested by the power-generating facility owner, or the prospective owner, within three months of receiving a request, unless agreed otherwise by the power-generating facility owner or the prospective owner. 2.   A cost-benefit analysis shall be in line with the following principles: (a) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall base its cost-benefit analysis on one or more of the following calculating principles: (i) the net present value; (ii) the return on investment; (iii) the rate of return; (iv) the time needed to break even; (b) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall also quantify socioeconomic benefits in terms of improvement in security of supply and shall include at least: (i) the associated reduction in probability of loss of supply over the lifetime of the modification; (ii) the probable extent and duration of such loss of supply; (iii) the societal cost per hour of such loss of supply; (c) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall quantify the benefits to the internal market in electricity, cross-border trade and integration of renewable energies, including at least: (i) the active power frequency response; (ii) the balancing reserves; (iii) the reactive power provision; (iv) congestion management; (v) defence measures; (d) the relevant TSO shall quantify the costs of applying the necessary rules to existing power-generating modules, including at least: (i) the direct costs incurred in implementing a requirement; (ii) the costs associated with attributable loss of opportunity; (iii) the costs associated with resulting changes in maintenance and operation.

Read the full instrument → · Read this in context: CHAPTER 2 — Cost-benefit analysis →

Other provisions in CHAPTER 2 — Cost-benefit analysis

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of 2026-07-04

CitationArticle 39 of Commission Regulation (EU) 2016/631 (LawPlayer, data as of 2026-07-04)

© European Union, https://eur-lex.europa.eu, 1998-2026. Reuse authorised under Commission Decision 2011/833/EU, provided the source is acknowledged.

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