Implement the network codes

Working toward a secure, competitive and low-carbon European electricity sector and the Internal Energy Market is an ambitious target, that needs a common set of rules. The European network codes are technical rules, that complement existing legislation by defining a common basis for all stakeholders and market parties to adopt the same practices and business processes across Europe. Between 2009 and March 2017, ENTSO-E has developed, jointly with ACER, policy-makers and stakeholders, eight network codes and guidelines.

 The network codes are grouped into three families:

  • Market codes move market integration forward, to increase competition and resource optimisation. They set rules for capacity calculation and allocation, day-ahead and intraday markets, forward markets and balancing markets.
  • Operational codes reinforce the reliability of the system through state-of-the-art and harmonised rules for operating the grid. They cover system operation, regional cooperation and emergency situations.
  • Connection codes establish the EU-wide conditions for linking all actors safely to the grid, including renewables and smart consumption. They include the technical requirements for generation and demand facilities and high-voltage direct current (HVDC) connections.

To keep network codes up-to-date with market and technological developments, and learn from the implementation experience, the codes may be reviewed.

All codes have entered into force and ENTSO-E is now focussing on their implementation, which is a demanding undertaking for all parties involved.

Allocation of implementation tasks

Implementing the codes requires a specific combination of national, regional and pan-European implementation measures and tools. All market participants, DSOs, TSOs, NEMOs and regulators, at the EU, regional and national levels, are involved in various ways.

With respect to tasks allocated to system operators, the codes define which entity is responsible for each implementation task¹.

1 When the ACER Regulation enters into force in mid-2019, ‘all NRAs’ decisions on all TSOs deliverables will become ACER decisions.

Task attributed to…ResponsibilityApproval
ENTSO-EENTSO-EACER
Pan-European ‘All TSOs’All TSOs (with ENTSO-E acting as facilitator)All NRAs
Regional ‘All TSOs’TSOs of the region (with ENTSO-E acting as facilitator for some tasks)NRAs of the region
NationalDepending on national legislation (TSO, DSO …)
(ENTSO-E may provide supporting documents and guidance)
National NRAs

Figure 1: Network codes – Entities responsible for pan-European, regional and national tasks

‘All TSOs’ refers to the TSOs of all EU countries (pan-European ‘all TSOs’), or to the TSOs of a specific EU region (regional ‘all TSOs’). Because TSOs have decided that ENTSO-E’s structures are the most suitable vehicle to facilitate the delivery of pan-European tasks and some regional tasks, ENTSO-E facilitates the European implementation process.

The codes beyond the EU

For non-EU countries, modalities of implementation of the codes and guidelines depends on the legal framework governing their relationship with the EU:

  • Energy Community countries: the Energy Community has already begun the transposition of the network codes and guidelines in its acquis and with those in the contracting parties’ national legal orders.
  • European Economic Area (EEA) countries: Iceland and Norway are, though the EEA agreement, implementing the Third Energy Package and the network codes.
  • Switzerland: In the absence of a specific agreement between the EU and Switzerland, the application of the network codes and guidelines by the Swiss TSO Swissgrid is undertaken on a voluntary and, where relevant, contractual basis.

To ensure the smooth implementation of the network codes in non-EU countries in the future, TSOs members of ENTSO-E whose countries are not members of the EU participate in the development of ‘all TSOs’ (pan-European and regional) deliverables. However, only EU TSOs formally approve the proposed deliverables before their submission to regulators.

Stakeholders involvement in ENTSO-E’s implementation tasks

European Stakeholders Committees help inform the decision-making process for the implementation deliverables, and serve as a platform to discuss issues of EU-wide importance. They include a Market Stakeholders Committee, a Grid Connection Stakeholders Committee and a System Operations Stakeholders Committee, as well as a Balancing Stakeholder Group focusing on the implementation of the Electricity Balancing Guideline.

ENTSO-E supports the committees by facilitating, in conjunction with ACER, the preparation and development of meetings. ENTSO-E also maintains, with the support of ACER, the European Commission, and Committees members, the Issue Logger Tool, where the questions on the codes’ implementation raised by Committees members are centralised and answered in a transparent manner.

Set up in Q3 2018, the TSO – DSO Network Code/Guideline Implementation Group discusses issues of interest to DSOs related to the implementation of network codes.

Spreading knowledge of network codes

Launched in October 2018, the E Codes application for smartphones provides easy access to the articles of all eight network codes and guidelines. It makes it possible to track the implementation tasks, access implementation deliverables, and view codes-related public consultations, news and events. The app was downloaded by 1400 users in 2018 and has over 600 daily uses of the app.

In addition, to help stakeholders better understand
network codes, the related challenges and solutions, ENTSO-E and the Florence School of Regulation, have developed an online training on EU electricity network codes. The second training took place in the fall of 2018 and included 166 participants from 28 different countries.

The Capacity Allocation and Congestion Management Regulation

The rules set by the CACM Regulation provide the basis for the implementation of a single energy market across Europe. The CACM Regulation establishes the methods for allocating capacity in day-ahead and intraday timescales, and outlines how capacity will be calculated across the different zones. Putting in place harmonised cross-border markets in all timeframes will lead to a more efficient European market and will benefit customers.

CACM was the first code to enter into force in August 2015 and its implementation is well advanced. All pan-EU methodologies and most of the regional methodologies have been submitted.

Market coupling

Day-to-day management of the single day-ahead and intraday coupling

According to CACM Article 10, TSOs and NEMOs shall jointly organise the day-to-day management of the single day-ahead and intraday coupling. Throughout 2018 TSOs and NEMOs agreed on the overall principles of the governance structure of the single intraday and day-ahead coupling. Discussions continue to further specify the details of the governance.

This work will help to jointly organise the further development of the market coupling by defining the responsible bodies and elaborating a classification of the decisions to be made by each body, as well as helping to define the criteria for prioritising the functionalities to be developed.

Amendment to the determination of Capacity Calculation Regions

Attributing new bidding zone borders in a timely fashion is essential for providing the clearest possible framework for the implementation of the CACM (Article 15) and FCA (Article 8) regulations. All TSOs’ initial proposal for Capacity Calculation Regions (CCR) delimitation, approved by ACER in 2016, only considered bidding zone borders due to interconnections that were planned to be commissioned before 2018. Consequently, the bidding zone borders created by newly established interconnectors were not yet attributed to a CCR.

Changes to the CCR determination, proposed by TSOs in 2018, aim at accommodating the Denmark 1 – The Netherlands (DK 1–NL) border resulting from the Cobra cable interconnection, two future interconnections of the France-Great Britain (FR-GB) bidding zone border and the ALEGrO interconnection on the bidding zone border Belgium-Germany/Luxembourg.

Key dates & documents

17 Apr 2018

Submission of all TSOs’ draft proposal including changes to the Hansa, Core and Channel CCRs

All TSOs’ methodologies for calculating scheduled exchanges resulting from single day-ahead or intraday coupling (Articles 43 & 56 CACM)

Following two requests for amendments from NRAs, a third version of the proposals were submitted by all TSOs to all NRAs in December 2018.

Relieving congestions: bidding zones

Cross-zonal electricity trades and exchanges are organised between bidding zones based on available transfer capacities or a so-called flow-based method calculated by TSOs, while internal trades inside bidding zones are considered to be unrestricted. The definition of bidding zone boundaries is therefore a question of major relevance for efficient congestion management and a well-functioning market. To analyse the robustness of this structure, and whether it is appropriate for future market needs, the CACM Regulation foresees regular assessments and possible review of the existing configuration.

ENTSO-E Bidding zones

Figure 2: Bidding zones configuration

The 2018 technical report on bidding zones configuration

Article 34 of the CACM Regulation requires ACER to conduct an efficiency assessment of the current bidding zone configuration every three years. For that purpose, in January 2018 ACER requested ENTSO-E to deliver a technical report on the current bidding zone configuration. The technical report released in October 2018 is a transparent and exhaustive account of present congestions and their future evolution, power flows not resulting from capacity allocation, and congestion incomes and firmness costs for the years 2015, 2016 and 2017, for all EU bidding zones.

The technical report is a mere collection of facts and does not provide a recommendation on future bidding zone configuration changes. Based on this report, and on its own yearly Market Monitoring Report, ACER may assess the efficiency of bidding zones and may ask TSOs to launch a review of an existing bidding zone configuration as per Article 32(1).

Key dates & documents

18 Jan 2018

Official request from ACER to ENTSO-E

15 Oct 2018

ENTSO-E published and submitted to ACER the Bidding zone configuration technical report 2018

The 2018 bidding zones review of Central Europe

In December 2016, ACER issued a request for a review of an existing bidding zone configuration as specified in CACM Article 32(1). This review covered Austria, Belgium, the Czech Republic, Denmark, France, Germany, Hungary, Italy, Luxembourg, the Netherlands, Poland, Slovakia and Slovenia, with a legal deadline of 21 March 2018.

Key dates & documents

9 Feb – 9 Mar 2018

Public consultation on the draft Bidding Zone Review

5 Apr 2018

Publication of the First Edition of the Bissing Zone Review

The approach chosen by the participating TSOs was based on a selection of ex ante defined configurations, encompassing a splitting or merging of the existing bidding zones. They include a separation of Austria from Germany / Luxembourg, a split of the ‘big countries’ France and Germany / Luxembourg and Poland, and a further split of France and Germany / Luxembourg into three zones. To also consider the implications of merging zones, the combinations of Belgium with the Netherlands and the Czech Republic with Slovakia have also been considered.

For the first time, these configurations were analysed and compared over large physical areas using a flow-based methodology. The participating TSOs used detailed grid and market models to simulate market and system operations for the different configurations analysed. Assumptions had to be made regarding the future grid, generation and demand developments, as well as on the future generation cost structures. ENTSO-E played a facilitating role, supporting the participating TSOs in the process.

This first report analysing bidding zone configurations in Europe demonstrated the significant technical, and even more so political, complexity of the task. The participating TSOs considered that the evaluation presented in the first edition of the Bidding Zone Review did not provide sufficient evidence in support of either modifying or maintaining the current bidding zone configuration. Therefore, they recommended that, given the lack of clear evidence, the current bidding zone delimitation be maintained². Further work is ongoing on the TSOs’ side to assess and learn from the current review, so that more concrete recommendations can be made in the future.

2 This recommendation should in no way be interpreted as an endorsement of or an objection against the split of the German/Luxembourgian and Austrian bidding zones where TSOs respect all relevant regulatory decisions, e. g. the decision of the Agency for the Cooperation of Energy Regulators no 06/2016 of 17 November 2016 on the electricity transmission system operators’ proposal for the determination of capacity calculation regions and the requests of the regulatory authorities of Germany and Austria.

Capacity Calculation Region level

The CACM Regulation tasks CCRs with delivering regional methodologies for capacity calculation (Art. 20), methodologies for redispatching and countertrading (Art 35 and 74) and fallback procedures (Art. 44).

Figure 3 provides an overview of the current status of regional methodologies.

 CACM CapCalcRD&CTRD&CT Cost Sharing
NordicApproved 16-Jul-2018Submitted 1st Amendment 14-Nov-2018Submitted 1st Amendment 14-Nov-2018
HansaApproved 19-Dec-2018Submitted 1st Amendment 20-Dec-2018Submitted 1st Amendment 20-Dec-2018
CoreACER desision 21-Feb-2019Submitted 1st proposal 28-Feb-2019Submitted 1st proposal 28-Feb-2019
Italy NorthSubmitted 1st Amendment 18-Feb-2019Submitted 1st Amendment 18-Feb-2019Submitted 1st Amendment 18-Feb-2019
Greece ItalyApproved 26-Jul-2018Approved 25-Jan-2019Approved 12-Sep-2018
SWEApproved 15-Nov-2018Submitted 16-Mar-2018Submitted 1st Amendment 14-Nov-2018
IUApproved 23-Jul-20182nd Request for Amendment 13-Mar-20192nd Request for Amendment 13-Mar-2019
ChannelApproved 23-Nov-2018Submitted 1st Amendment 26-Nov-2018Submitted 1st Amendment 25-Sep-2018
BalticApproved 16-Nov-2018Submitted 1st Amendment 19-Nov-2018Submitted 1st proposal 13-Dec-2018
SEESubmitted 2nd Amendment 7-Feb-2019Reffered to ACER Feb-2019 / 
Decision by 11-Aug-2019
Submitted 1st proposal 06-Sep-2018

Figure 3: Status of regional methodologies

Fallback procedures

They were all submitted in 2017. By September 2018, all proposals except for the Channel CCR had been adopted by NRAs (by ACER for the Core CCR).

Go-live of XBID

NEMOs and TSOs launched XBID in June 2018. Marking an important step towards creating a single integrated European intraday market, the go-live with the 10 Local Implementation Projects delivers continuous trading of electricity across the following countries: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, The Netherlands, Portugal, Spain and Sweden. Most other European countries are due to take part in a second ‘wave’ go-live with XBID in 2019.

 

European-wide intraday coupling is a key component for completing the European Internal Energy Market. As the intraday market develops it will enable increased optimisation of the use of generation – especially variable renewable energy sources, it will enable demand response products to develop and will also lead to welfare benefits.

 The Forward Capacity Allocation Regulation

The FCA Regulation, which entered into force on 17 October 2016, outlines the rules regarding the type of long-term transmission rights that can be allocated via explicit auction, as well as the way holders of transmission rights are compensated in case their rights are curtailed. The overarching goal is to promote the development of liquid and competitive forward markets in a coordinated manner across Europe and provide market participants with the ability to hedge risks associated with cross-border electricity trading.

The single allocation platform

The Single Allocation Platform (SAP) facilitates the allocation of long-term transmission rights and the transfer of these rights among market participants at the European level. In addition, it should contribute to a transparent and non-discriminatory allocation of long-term transmission rights. FCA Article 48(1) requires TSOs to ensure that the SAP is operational and complies with the functional requirements by December 2018 (one year after the approval of the proposal for the establishment of the SAP).

The first long-term auctions under the SAP cooperation agreement were performed at the beginning of October 2018. The SAP is operated by the Joint Allocation Office (JAO), a joint service company of 20 TSOs from 17 countries, performing the yearly, monthly and daily auctions of transmission rights on 27 borders in Europe.

Congestion income distribution methodology

All TSOs had up to six months after the approval of the CID methodology under CACM, i. e., until July 2018, to jointly develop a proposal for a methodology for sharing congestion income from forward capacity allocation (FCA Article 57). All TSOs submitted their joint proposal in June 2018. All NRAs sent a request for amendment in December 2018 and all TSOs submitted an amended proposal in March 2019.

The Electricity Balancing Guideline

Electricity balancing is the process by which TSOs ensure, in real time, sufficient energy to balance inevitable differences between supply and demand. The Guideline on Electricity Balancing (EBGL) aims to move Europe from electricity balancing performed on a national level, to a situation in which balancing resources available all across Europe are used in the most effective way within the constraints.

The Electricity Balancing Guideline entered into force on 18 December 2017. Implementation began in 2018 even though pilot implementation projects were already ongoing.

European balancing platforms

The EBGL foresees the implementation of common Euro­pean platforms for each balancing market process: imbalance netting (IN), automatic Frequency Restoration Reserves (aFRR), manual Frequency Restoration.

Reserves (mFRR) and replacement reserves (RR). TSOs are developing these platforms via four implementation projects IGCC, PICASSO, MARI and TERRE.

  • European platform for replacement reserves (EBGL Art. 19): All TSOs performing the replacement reserve process submitted a proposed implementation framework to all NRAs by the deadline. It was approved by NRAs.
  • European platform for Imbalance netting (EBGL Art. 22): All TSOs submitted the proposed implementation framework to all NRAs, which requested amendments in December 2018. All TSOs are reviewing their proposal for resubmission in early 2019.
  • European platforms for mFRR (manual Frequency Restoration Reserves) and aFRR (automatic Frequency Restoration Reserves (EBGL Art. 20 and 21): All TSOs submitted proposed implementation frameworks to all NRAs by the legal deadline of 18 December 2018.
Key dates & documents

15 Jan – 15 Mar, 21 Feb – 4 Apr,
26 Apr – 29 Jun, 15 May – 16 Jul

public consultations

18 Jun 2018

submission of the RR proposal and IN proposal

18 Dec 2018

submission of the aFRR proposal and mFRR proposal Network Codes Issue Logger

Further EBGL deliverables in 2018

Further EBGL deliverables in 2018DeadlineKey dates & documents
EBGL Art. 12(5): ENTSO-E shall update the manual of procedures of its Transparency Platform and submit it to ACER for opinionBy 18 Apr / 4 months after EIF17 Apr: Submission of updated MoP to ACER
13 Jun: ACER Opinion
4 Dec: Resubmission of updated MoP to ACER
EBGL Art. 29.3: All TSOs shall develop a proposal for a methodology for classifying the activation purposes of balancing energy bids18 Dec12 Sep – 13 Nov: public consultation
18 Dec: Proposal submitted to all NRAs
EBGL Art. 30(1): All TSOs shall develop a proposal for a methodology to determine prices for the balancing energy that results from the activation of balancing energy bids for the frequency restoration process and the reserve replacement process.18 Dec12 Sep – 13 Nov: public consultation
18 Dec: Proposal submitted to all NRAs
EBGL Art. 50(1): All TSOs shall develop a proposal for common settlement rules, which will be applicable to all intended exchanges of energy as a result of each of the 4 balancing processes18 Dec18 Dec: Proposal submitted to all NRAs

Figure 4: Further EBGL deliverables in 2018

Electricity balancing in Europe

To promote understanding of the future integrated European balancing market, ENTSO-E released ‘Electricity balancing in Europe’ in December 2018. The paper provides a simplified overview of the European balancing energy market target model and explains the main concepts and processes related to balancing energy markets and European platforms. It specifically focuses on the interaction between the different balancing processes and briefly describes the legal framework of the European balancing energy target model.

The System Operation Guideline

The System Operation Guideline (SOGL) establishes harmonised rules on how to operate the grid to ensure the security of supply with increasing renewables. Its implementation entails several challenging tasks for TSOs at pan-European and regional (synchronous area and CCR) levels. Work at the pan-European level, including tasks performed by the Regional Security Coordinators (RSCs), is facilitated by ENTSO-E, while regional activities are decided by TSOs in the respective regional groups within ENTSO-E.

Activities at pan-European level

A large part of the implementation of the SOGL is prepared through the rollout of three of the five standard tasks of Regional Security Coordinators. The relevant ‘all TSOs’ deliverables in 2018 are listed in Figure 3.

In addition, all TSOs’ proposal for key organisational requirements, roles and responsibilities in relation to data exchange (KORRR) was developed in accordance with SOGL Article 40(6) (see KORRR proposal version of November 2018 after NRAs request for amendment).

Activities at the regional level

Progress was also achieved for several deliverables at the synchronous area level, most notably, the development of proposals for the methodologies, conditions and values included in the respective synchronous area operational agreements (SAOA) for the Continental Europe, Great Britain, Nordic and Ireland/Northern Ireland synchronous areas (Article 118 SOGL). These SAOA will replace and  supersede in 2019 the existing operational agreements between TSOs, such as the Operation Handbook in Continental Europe.

Through these SAOA, TSOs commit to comply with the SOGL and, at the synchronous area level, agree on a number of topics relevant for load-frequency control and reserve, e.g. load-frequency control structure for the synchronous area, common rules for the operation of load-frequency control in the normal and alert states, frequency quality defining and target parameters, dimensioning rules for frequency containment reserves, limitations on the amount of frequency restoration and replacement reserves exchanged between synchronous areas. For each synchronous area, the commonly proposed methodologies, conditions and values to be approved by regulatory authorities were submitted to public consultation and delivered in 2018 to the concerned regulators (Article 6(3) SOGL). SAOA for CE (SAFA) signature has been completed and the contract entered into force on 14 April 2019.

RSC tasksRelated SOGL deliverables in 2018Key dates & documents
Coordinating operational security analysis:
Identify operational security violations in the operational planning phase. Identify the most efficient remedial actions and recommend them to the concerned TSOs.
SOGL Article 75.1:
Methodology for coordinating
operational security analysis, aiming at enhancing the standardisation of operational security analysis at least per synchronous area.

Deadline: 14 Sep 2018 / one year after entry into force
26 Feb – 6 Apr:
public consultation

1 Oct 2018:
all TSOs submitted their proposal to all NRAs
Regional outage planning coordination:
Detect outage planning incompatibilities and possible solutions.
SOGL Article 84.1:
Methodology for assessing the relevance of assets for outage coordination. The common methodology for all synchronous areas will be the basis for identifying which power generating modules, demand facilities and grid elements located in a transmission system or distribution system need to be considered in the outage coordination process.

Deadline: by 14 Sep 2018 / one year after entry into force
26 Feb – 6 Apr 2018:
public consultation

1 Oct 2018:
all TSOs submitted their proposal to all NRAs
Building of common grid model:
Provide the common grid model for all timeframes and applications, to all TSOs served by an RSC.
SOGL Article 67.1
Methodology for building the year-ahead common grid models from the individual grid models and for saving them

SOGL Article 70.1
Methodology for building the day-ahead and intraday common grid models from the individual grid models and for saving them

SOGL Article 65
Process for developing a common list of year-ahead scenarios

TSOs’ individual grid models, and consequently the CGMs, are being built in accordance with the defined scenarios. The IGMs and CGMs serve several purposes, including seasonal security calculations, operational planning coordination, capacity calculation and other applications such as computation of the influence factors for observability area or OPC relevant asset definition.
11 June 2018:
all NRAs approved the proposed methodologies for building year-ahead/day-ahead/intraday common grid models from individual grid models. (There are 3 versions of the methodologies, in compliance with CACM, FCA and SOGL. (CGM and GLDPM methodologies))

16 July 2018:
all TSOs delivered the first set of Y-1 scenarios, for 2019.

Figure 5: RSC tasks and SOGL deliverables in 2018

The Emergency and Restoration Network Code

The Emergency and Restoration Network Code establishes rules on how to effectively handle emergency situations and restore the system as efficiently and as quickly as possible. It entered into force on 18 December 2017 and will be implemented at the national or TSO level.

An expert team supported by ENTSO-E has been drawn from TSO representatives involved in drafting the original Code. ENTSO-E has monitored the national implementation of the network code and supported TSOs in the delivery of their proposals for National Defence and Restoration Plans and the terms and conditions required of service providers by 18 December 2018. The expert team has provided guidance documents and, moreover has developed a coordinated approach for the TSOs to provide the information to RSCs by July 2019, to fulfil their required consistency assessments of system Defence and Restoration Plans by September 2019. Additionally, the expert team has established guidelines for TSOs for situations in which the market activities are suspended and restored. Drafting and implementation of these rules is the responsibility of each TSO and is subject to NRA approval.

The connection codes

Connection codes set the EU-wide conditions for linking all actors safely to the grid, including renewables and smart consumption. They include the technical requirements for generation (Requirement for Generators – RfG code), demand facilities (Demand Connection – DC code) and high-voltage direct current (HVDC code) connections.

2018 was the last year for defining and submitting the proposals i. e. non-exhaustive requirements and boundary thresholds according to national processes. These needed to be submitted by May 2018 for RfG and September 2018 for DC and HVDC.

Although the implementation of the connection codes is the responsibility of each EU member state, ENTSO-E continued to actively support the TSOs and relevant stakeholders by providing the last set of non-binding Implementation Guidance Documents (IGDs) before the end of the implementation. In early 2018 several frequency-related IGDs were published. Soon after this launch, IGDs on Cost Benefit Analysis and HVDC-related aspects were made available.

For all these technical documents, there was a dedicated period for consultation (one month) and, in certain cases, public discussions with stakeholders occurred through ENTSO-E’s technical groups. The results of each consultation and the replies by ENTSO-E can be found here. The Grid Connection European Stakeholder Committee (GC ESC) was also used as a platform for further discussion and communication.

In addition, TSOs are responsible to coordinate, when establishing certain connection codes requirements at the national level. ENTSO-E released a public report on the explicitly required coordination or reasonably undertaken collaboration between TSOs when implementing the connection network codes at the national level, because of the cross-border impact of these specifications mostly at the synchronous area level.

During the second half of 2018, the GC ESC ­established dedicated Expert Groups chaired by ENTSO-E ­addressing topics that require particular attention: ­“Requirements for pump-storage hydro power generation modules (EG PSH)”, “Identification of storage devices (EG STORAGE)” and “Mixed customer sites with generation, demand and storage, and definition of system users (EG MCS)”. ­Outcomes are expected in Q2 2019.

Monitoring the implementation

ENTSO-E is entrusted with monitoring and analysing the implementation of the network codes and guidelines, and their effect on the harmonisation of applicable rules aimed at facilitating market integration (Article 8(8) of Regulation (EC) No 714/2009). This section provides an overview of ENTSO-E’s monitoring activities in 2018.

Monitoring activities entail the elaboration of monitoring plans and monitoring reports, as well as the collection of data (so-called ‘Lists of information’), including the identification of data to be collected and the design and implementation of interfaces for data collection.

In 2018, ENTSO-E has been preparing the monitoring of the implementation of the Electricity Balancing Guideline, System Operation Guideline and Emergency and Restoration Network Code. The EBGL Monitoring Plan was submitted to ACER on 6 June 2018. Regarding SOGL, the list of relevant information to be communicated by ENTSO-E to ACER will be developed over the course of 2019.

Market codes

1st Joint report on the progress and potential problems with the implementation of intraday and day-ahead coupling, as well as forward capacity allocation.

The report provides an account of the current state-of-play and challenges in the implementation of single day-ahead and intraday coupling in terms of all TSOs and all NEMOs deliverables. The report also takes stock of the progress achieved thus far in the coupling of electricity markets, by the Multi-Regional Coupling project (MRC) and the Czech-Slovak-Hungarian-Romanian Market Coupling project (4M MC) for day-ahead, and the intraday market coupling project (XBID). The ‘go-live’ of continuous cross-zonal trading of XBID/SIDC in 14 European countries was the highlight of 2018. The SIDC is expected to extend, with up to five local implementation projects in preparation to ‘go-live’ in 2019.

Regarding the single day-ahead coupling (SDAC), the report notes that both the MRC and the 4M MC project experienced no incidents of partial or full decoupling in 2017/2018. TSOs and NEMOs are progressing towards the signature of a DAOA setting their respective rights and obligations, in respect to the implementation of the SDAC.

The report also takes stock of the status of the implementation deliverables under the FCA Regulation. The Single Allocation Platform was expected to effectively allocate forward capacity well in advance of the legal deadline of December 2018.

Capacity calculation and allocation

ENTSO-E’s first Biennial report on forward capacity calculation and allocation was delivered to ACER on 14 August 2018, as per Article 63(1) (c) of the FCA Regulation. The FCA Regulation specifies ACER must decide whether to publish the report.

Data collection and provision to ACER

As previously mentioned, monitoring activities include the collection of data from TSOs or other entities, and subsequently providing these data to ACER for its monitoring tasks. In 2018, the documentation for the list of information to be provided based on the CACM Regulation was prepared in close cooperation with ACER. The IT project to support the data collection and provision kicked off and will be deployed in 2019. In the meantime, the discussion on the list of information stemming from the FCA Regulation continues.

Key dates & documents

14 Aug 2018

Publication of the 1st Joint report on the progress and potential problems with the implementation of single-day-ahead coupling and single intraday-coupling, as well as forward capacity allocation (as per 82(2)(a) of the CACM Regulation and 63(1)(a) of the FCA Regulation).

System operation codes

Incident Classification Scale annual report

As a yearly deliverable, according to Article 15 of the SOGL, ENTSO-E’s incident classification scale annual report provides a detailed review of any incident on the network operated by ENTSO-E’s members. It aims at identifying needed improvements to support sustainable and long-term operational security, including improvements related to network operation tools, real-time operation and operational planning.

Based on the 2017 report, a total of 1072 incidents reported by TSOs over the year, of which 680 were classified as a 0 according to the incident classification scale, 390 were classified as a 1, and 2 were classified as a 2, both in isolated systems. No incident of scale 3 was reported. All synchronous areas reported incidents on transmission network elements. Incidents pertaining to the power generating facilities at scale 1 occurred only in isolated systems.

ENTSO-E updated its incident classification scale methodology in 2018, so that it is compliant with the SOGL.

Monitoring the implementation at national level of the connection codes

ENTSO-E is tasked with monitoring the implementation of the three connection codes, looking in particular at divergences in the national implementation and whether the choice of values and ranges in the requirements specified in each regulation continue to be valid (Article 76, HVDC; Article 57, DC; Article 59, RfG).

Striving for more transparency, ENTSO-E continued its efforts to monitor the national implementation processes and provide updated information regarding the status of the selected proposals for all non-exhaustive requirements throughout 2018.

To collect all relevant information necessary to monitor their implementation, ENTSO-E continued using and upgrading the so-called ‘Active library’, which compiles relevant information and documents from each country.

In 2018, ENTSO-E worked on improving the monitoring excel file – developed in 2017 – wherein all non-exhaustive requirements (values, ranges and status) are incorporated as soon as they become available. This table aims to provide a high-level view of any possible divergences among the TSOs. This activity is still ongoing and will be completed by Q3 2019 – at which point all approved proposals for all three connection codes are expected.

Monitoring the implementation of the connection codes has proven to be a challenge, due to the multiple national implementation processes. Thus, retrieving information is a continuous effort.

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About this annual report

ENTSO-E’s Annual Report is a legally mandated deliverable, submitted to ACER for opinion. In line with ENTSO-E’s key activity areas, it is structured as follows:

1 and 2. Internal Energy Market: this part is divided into activities related to
i) network codes and ii) the future power system;

3. Develop a new ICT approach and capability, including cyber-security;

4. Develop the DSO partnership;

5. Coordinate and facilitate regional developments;

6. Develop transparency and trust, including stakeholder engagement activities.

The resources used to deliver these objectives are detailed in Annex 1.

The activities described in this report were delivered thanks to the collective work of ENTSO-E’s 43 member TSOs and ENTSO-E’s Secretariat based in Brussels.