All TSOs proposal for amending the determination of LFC blocks for the Synchronous Area Continental Europe with regard to LFC Area Denmark West

Overview

Energinet and TenneT GmbH have a long history of close cooperation on operational matters with the two companies being in the same LFC Block. Energinet has always operated Denmark West as an LFC Area with its own LFC. Any remaining imbalances have then been balanced by the TenneT LFC. The legal basis for this way of operating is currently a system operation agreement between the two TSOs.

The close cooperation and the fact that Energinet acts as its own LFC Area has caused a lot of questions regarding the transparency of the DKW-TTG border. A formal separation of DKW from the TTG LFC Area has therefore been discussed between the TSOs, who agree that such formalisation would increase the transparency of the DKW-TTG border.

Further, with the upcoming European balancing platforms (aFRR, mFRR, Imbalance Netting) it has become clearer that the current status with Denmark West being a Bidding Zone within the TTG LFC Area leads to some challenges which can be solved by letting DKW become its own LFC Area. This way Energinet can still participate in the European Balancing Markets independently of TenneT (depending on the grid situation in Germany).

The proposers agree that from an operational point of view, the change has no significant impact within the DE-DKW-LU LFC Block and it will not impact other LFC blocks.

Why your views matter

The current LFC blocks determination is established in form of the all TSOs proposal from 15 July 2018. The proposal satisfies the SA CE TSOs’ obligation under Article 141, 2. SO GL to establish the LFC blocks for SA CE within 4 months of the entry into force of SO GL. The LFC blocks determination became binding with the approval by all SA CE regulatory authorities pursuant to Article 6 (3) g. SO GL.

As required by SO GL Art. 7(4) in conjunction with Art. 11, the current amendment proposal should be submitted for public consultation for 1 month. The proposal is is attached to this consultation.