Procurement rules
Article 32
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.