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European electricity grid operators finalise 2012 work plan for network codes

11 Oct 2011 17:05:09 | edem

The European Network of Transmission System Operators for Electricity (ENTSO-E) is preparing new legally binding rules on grid connection, capacity allocation, load frequency and balancing over the next year. The group's work plan through 2012 has now been finalised and will be sent to the Agency for the Cooperation of Energy Regulators (ACER) for approval.

ENTSO-E is tasked with drawing up the legally binding network codes under the EU's third energy package.

Connection to the grid

Next up are four new network codes on grid connection to deal with integrating more renewable supply, a priority for TSOs.

TSOs will draw up the four codes using a framework guideline drafted by ACER in July this year.

The first two of these four codes will govern how plants that produce and use energy are connected to the grid, the generation and demand connection codes.

A final version of the generation connection code, which updates how to plug intermittent generation into the grid, is expected in June 2012, according to the new work plan.

A draft of the demand connection code, regulating load management, is due in the first quarter of 2012. A final version is expected by the end of the year.

Two later codes will regulate actual connection procedures and a code for high-voltage, direct current (HVDC) connections, often used for long-distance or undersea cables.

Allocating capacity and balancing

A second set of network codes, aiming to allocate transport capacity through Day-ahead price coupling and implicit intra-day trading, will be drafted throughout 2012.

Key in this group is the capacity allocation and congestion management code, which ENTSO-E is already working on.

This code will be linked to a guideline on the duties of different market coupling parties like exchanges and transmission system operators now being drafted by the European Commission. The governance guideline is going to be developed either late this year or in early 2012.

A network code for the forward capacity market should start in late 2012.

Electricity trading in the wholesale market and more intermittent energy is also making it harder for TSOs to manage real-time balancing. ENTSO-E will now develop pan-European standards instead of the existing rules in five synchronous areas. The association said it would intensify work on the balancing code in 2012, with a final draft due in the second quarter of 2013.

In parallel, ENTSO-E will also draft a balancing network code, which will decide how capacity is calculated and how intra-day trading happens. IS

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