Electricity Balancing Network Code: Methodology for Cost Benefit Analysis

Overview

ENTSO-E welcomes stakeholders’ comments on a draft report describing the General Methodology for the Cost Benefit Analysis and on a draft scoping paper for a specific methodology for the Imbalance Settlement Period Harmonisation. The public consultation runs from 23 February until 31 March.

The draft Network Code on Electricity Balancing (NC EB) requires a cost benefit analysis (CBA) to be undertaken in support of decisions relating to the European Integration Model, the Application of a TSO-BSP model and the Harmonisation of Imbalance Settlement Period.

ENTSO-E has developed a draft report describing the General Methodology for the Cost Benefit Analysis which shall be applied for all required CBAs and a draft scoping paper for planning cases and criteria for the CBA on the harmonisation of the Imbalance Settlement Period.

ENTSO-E invites all interested parties:

• to express their opinion on the 30 consultation questions of the draft report on the General Methodology;
• to submit their view on the draft report on the General Methodology for the Cost Benefit Analysis;
• to submit their view on the draft scoping paper for planning cases and criteria for the CBA on the harmonisation of the Imbalance Settlement

Why your views matter

The draft Network Code on Electricity Balancing (NC EB) requires a cost benefit analysis (CBA) be undertaken in support of various decisions:

•    European Integration Model (Articles 14(3), 16(4), 18(4), 20(3)): CBAs to support TSOs' proposal to modify the European integration model (Replacement Reserves (RR), Frequency Restoration Reserves with manual activation (FRR-m), Frequency Restoration Reserves with automatic activation (FRR-a), and the imbalance netting process);

•    Application of a TSO-BSP model (Article 38): CBA to indicate the implications of the application of a TSO-BSP model for the exchange of balancing capacity or the exchange of balancing energy (RR and FRR) for at least the responsibility area or scheduling area when appropriate for the contracting TSO and the connecting TSO; and

•    Harmonisation of Imbalance Settlement Period (Articles 21(2) and 21(5)): CBA on harmonisation of the imbalance settlement period (ISP) within and between synchronous areas. This CBA shall be submitted by TSOs to NRAs no later than 2 years after entry into force of the NC EB. After a decision is taken by NRAs about harmonisation of ISPs, specific CBAs might be performed by TSOs that have a proposal which deviates from the decision taken.

The proposals for the criteria and methodology for these CBAs shall be consulted for not less than four weeks according to Article 5 and are subject to approval by all NRAs according to Article 6 of the draft NC EB.