Below you will find the Frequently asked questions relating to the network code Electricity Balancing.
Electricity Balancing is one of the key roles of Transmission System Operators where they act to ensure that generation equals demand in real time. This is vital for ensuring security of supply and has an important bearing on costs to customers. The potential for balancing resources to be effectively shared between countries can enhance security of supply and reduce cost, hence there is a strong rationale for developing cross border balancing markets. The network code on Electricity Balancing will ensure that the correct framework will be put in place for this to happen.
Latest Update (December 2016)
An updated draft of the Electricity Balancing guidelines will be discussed in the next electricity cross-border committee. Use the link below to view the EC draft version sent to the electricity cross-border committee in October 2016.
On 22 July 2015, the Agency for the Cooperation of Energy Regulators, ACER, recommended the Network Code on Electricity Balancing for adoption. On 23 December 2013, ENTSO-E delivered the Network Code on Electricity Balancing (NC EB) and Supporting Document to the Agency for the Cooperation of Energy Regulators (ACER). ACER provided its reasoned opinion on the Network Code on 23 March 2014.
ENTSO-E studied the reasoned opinion in detail. On 16 September ENTSO-E submitted a new version of NC EB, together with explanatory documents. Based on this resubmission, ACER issued a recommendation to adopt the code, along with amendments proposals. With a few exceptions, the NC EB is perfectly in line with the Framework Guidelines on Electricity Balancing. These exceptions, such as the implementation deadline for the European integration model, are motivated by ENTSO-E members experience as grid operators, and by their commitment to delivering ambitious but realistic codes.
The NC EB is a crucial piece of work that will greatly enhance Europe’s security of supply. By harmonising electricity balancing rules, trading of balancing resources between European TSOs will be facilitated; leading to a more efficient use of resources available, a reduction of costs and an increase in security of supply.
Given the complexity of balancing, its key role in European security of supply, and the low level of current European harmonisation, the NC EB is one of the most forward looking and ambitious network code so far.
ENTSO-E would like to thank all stakeholders who provided valuable contributions to the process, as well as colleagues from the European Commission, ACER and National Regulatory Authorities for the constructive cooperation during the development of NC EB.
The documents are available for download in the Related Documents and Links section below.
What Happens Next?
The Network Code will now be prepared by experts from the European Commission before it enters the Comitology process, through which it should become European law. ENTSO-E will assist both ACER and the European Commission in any way throughout this process in order to contribute to a smooth adoption.
Network codes need to be finalised and adopted by Member States, and are therefore expected to evolve over time. TSOs have however decided to begin the early implementation of a number of projects, as suggested by regulators. This will contribute to faster delivery of the IEM. ENTSO-E has proposed several cross border pilot projects with the purpose of:
- Testing the feasibility of the European (target) model and intermediate steps established in the ACER Framework Guidelines on Electricity Balancing (FG EB);
- Evaluating the associated implementation impact;
- Reporting on the experience gained.
More information at Cross Border Electricity Balancing Pilot Projects.
ENTSO-E also started working on other aspects of the ambitious path towards harmonised balancing markets in Europe. In March 2015, ENTSO-E launched a public consultation on the methodology for Cost Benefit Analysis.
Public Consultation on draft Network Code on Electricity Balancing
From 16 June to 16 August 2013, ENTSO-E held a public consultation on the draft Network Code on Electricity Balancing (NC EB). By the end of the nine-week consultation period, more than 40 stakeholders had submitted a total of 2178 individual comments via the web-based consultation tool.
ENTSO-E’s stakeholder engagement comprises of Stakeholder Advisory Group Meetings and Public Stakeholder Workshops, as well as ad-hoc meetings and exchange of views with any interested party as appropriate. The Electricity Balancing Stakeholder Advisory Group (EBSAG) members represent all relevant parts of the industry as well as consumers, to enable efficient and effective discussion on the process and content of the Network Code on Electricity Balancing. The EBSAG member organisation list may be viewed here and the Terms of Reference here.
ENTSO-E has hosted a total of four EBSAG meetings and three public stakeholder workshops on the NC EB. The latest public workshop was held in Brussels on 23 October to present and discuss the feedback received during the public consultation. This also served as an opportunity to discuss the changes made to the code in response to stakeholder feedback.
All material, including minutes and presentations from meetings are made public.
Stakeholder Advisory Group Meetings
Public Stakeholder Workshops