The energy policy of the European Union has set as a priority the achievement of an integrated European Energy Market, which will offer a more cost-effective and competitive electricity system, enhanced security and cross-border solidarity by integrating a greater share of Renewable Energy Sources.
The roadmap to this European energy integration requires both the development of the necessary interconnections aiming at the unrestricted electricity flow from low-price areas to higher-price areas, which will contribute to the reduction of energy costs through price convergence, and the harmonisation of rules and policies of the individual energy markets of all EU member states.
The Third Energy EU package, known as Clean Energy Package, approved in 2019, proposes an adaptation of a new European enegy policy framework, to facilitate the transition away from fossils fuels towards cleaner energy. The Electricity Regulation (EC) 714/2009 was revised in order to become more flexible and adjust to the new commercial reality. The Clean Energy Package sets, among others, a new EU target for 2030 by reaching the percentage of 32% for Renewable Enrgy Sources in the EU’s energy mix. The Clean Energy Package consists of the following Regulatory Framework:
- Regulation (EU) 2019/943 sets principles for the internal EU electricity market, by focusing mainly on the wholesale market as well as network operation.
- Directive (EU) 2019/944 sets rules for the generation, transmission, distribution, supply and storage of electricity and amends the Directive 2012/27/EU
- Regulation (EU) 2019/941 requires the Member States to prepare plans on how to deal with potential future electricity crises and abolishes the Directive 2005/89/EC
- Regulation (EU) 2019/942 updates the role and functioning of the European Union Agency for the Cooperation of Energy Regulators (ACER).
The new electricity market design is intended to better fit the future electricity markets, which will be characterised by more variable and decentralised production, an increased interdependence between cross-border systems and opportunities for consumers to participate in the market through demand response, aggregation, self-generation, smart metering and storage.
Europe’s cross-border electricity networks are operated according to rules that help govern the work of operators and determine how access to electricity is given to users across the EU. In the past, these grid operation and trading rules were drawn up nationally. As electricity is increasingly interconnected between countries, the EU-wide rules effectively manage these electricity flows in the internal energy market. These rules, known as network codes or guidelines, are legally binding European Commission implementing Regulations. They govern all cross-border electricity market transactions and system operations alongside the Regulation on conditions for accessing the network for cross-border electricity exchanges, according to the Regulation (EU) 2009/714.
The Network Codes are distinguished as follows:
The Connection Codes consist of:
- Regulation (EU) 2016/631 (‘RfG’) sets out detailed rules related to the connection of, principally, new power generating installations to national electricity networks.
- Regulation (EU) 2016/1388 (‘DCC’)sets out detailed rules related to the connection of, principally, new demand facilities to national electricity networks.
- Regulation (EU) 2016/1447 (‘HVDC’) sets out detailed rules related to the connection of, principally, new high-voltage direct current systems to national electricity networks.
For more information on the Connection Codes please visit the website of ENTSO-E.
The System Operation Codes consist of:
- Regulation (EU) 2017/1485 (‘SoGL’) which establishes a framework for the maintenance of the secure operation of the interconnected transmission system in real time,
- Regulation (EU) 2017/2196 (‘ER’) which sets down rules related to the management of the electricity transmission system in emergency, blackout and restoration states. The main objective of the relevant rules is to bring the system back to its normal state.
For more information on the System Operation Codes please visit the website of ENTSO-E.
Below you can find the methodologies that derive from these Codes.
|Methodology for Coordinated Operational Security Analysis||14 June 2021|
|FCR additional properties||21 January 2021|
|Methodology for Assessing the relevance of assets for Outage Coordination||19 June 2019|
|Key Organisational Requirements, Roles and Responsibilities (KORRR) relating to Data Exchange||19 December 2018|
|Common Grid Model Methodology||17 September 2018|
The Market Codes consist of:
- Regulation (ΕU) 2015/1222 (‘CACM’) governs the establishment of cross-border EU electricity markets in the day-ahead and intraday timeframes, as well as methods for the calculation of interconnection capacity.
- Regulation (EU) 2016/1719 (‘FCA’) establishes a framework for the calculation and allocation of interconnection capacity, and for cross-border trading, in forward markets (i.e. timeframes longer than day-ahead).
- Regulation (EU) 2017/2195 (‘EBGL’) sets down rules on the operation of balancing markets, i.e. those markets that transmission system operators (TSOs) use to procure energy and capacity to keep the system in balance in real time. The objectives of the guideline include increasing the opportunities for cross-border trading and the efficiency of balancing markets.
For more information on the System Operation Codes please visit the website of ENTSO-E. Below you can find the methodologies that derive from these Codes.
|CCR Amendment||07 May 2021|
|CCR Amendment||01 April 2019|
|GRIT - Common Capacity Calculation Methodology for The Day-Ahead and Intraday Timeframe
||12 July 2018|
|Common Grid Model Methodology||8 May 2017|
|Generation and Load Data Provision Methodology||23 October 2017|
|Determination of Capacity Calculation Regions (CCRs)||17 November 2016|
|Market Coupling Development|
|Congestion Income Distribution Methodology (CIDM)||17 December 2021|
|GRIT Fallback||03 December 2020|
|Complementary Regional Intraday Auctions for Greece Italy Capacity Calculation Region||18 February 2019|
|Scheduled Exchanges - Intra-day||08 February 2019|
|Scheduled Exchanges - Day-ahead||08 February 2019|
|Intraday cross-zonal capacity pricing methodology||24 January 2019|
|Intraday Cross-Zonal Gate Opening and Gate Closure Times||24 April 2018|
|Day Ahead Firmness Deadline||15 May 2017|
|GRIT Fallback||10 April 2017|
|Congestion Income Distribution Methodology||14 December 2017|
|Redispatching and countertrading|
|GRIT - Coordinated Redispatching and Countertrading Methodology (art 35 CACM)||11 January 2019|
|GRIT - Coordinated Redispatching and Countertrading Cost sharing Methodology (art 74 CACM)||17 March 2018|
|Maximum & Minimum prices – Day-ahead||14 November 2017|
|Maximum & Minimum prices – Intraday||14 November 2017|
|Forward calculation of capacities between bidding zones|
|GRIT - Proposal for Splitting Long-Term Cross-Zonal Capacity||27 January 2020|
|GRIT – Common Capacity Calculation Methodology||27 January 2020|
|Common Grid Model Methodology||11 June 2018|
|Generation and Load Data Provision Methodology||23 October 2018|
|Forward allocation of cross-zonal capacities|
|Congestion Income Distribution (CID)||18 July 2022|
|Harmonised Allocation Rules – Amendment||29 November 2021|
|Methodology for Sharing Costs Incurred to Ensure Firmness and Remuneration of Long-Term Transmission Rights||23 October 2020|
|Harmonised Allocation Rules – Amendment||29 October 2019|
|GRIT - Specific Annex for Harmonised Allocation Rules||29 November of 2018|
|GRIT - Design of Long Term Transmission Rights||11 October 2017|
|Harmonised Allocation Rules for Long-Term Transmission Right||2 October 2017|
|Single Allocation Platform|
|Single Allocation Platform and the Methodology for Sharing Costs of Establishing, Developing and Operating the Single Allocation Platform||18 July 2022|
|Single Allocation Platform Proposal||18 September 2017|
|Balancing capacity exchanges|
|Methodology for a list of standard products for balancing capacity||17 June 2020|
|Common and Harmonised Rules and Processes for the Exchange and Procurement of Balancing Capacity for Frequency Containment Reserves (FCR)||26 April 2018|
|Exemption from the Obligation to Allow Balancing Service Providers to Transfer their Obligations to Provide FCR||28 December 2018|
|Exemption from the Requirement to Carry out the Procurement of Upward and Downward Balancing Capacity of aFRR Separately||18 December 2018|
|Capacity calculation and allocation|
|Methodology for a Co-Optimised Allocation Process of Cross-Zonal Capacity||17 June 2020|
|GRIT - Methodology for a Market‐Based Allocation
Process of Cross Zonal Capacity for the Exchange of Balancing Capacity or Sharing of Reserves
|18 December 2019|
|GRIT - Methodology for an Allocation Process of Cross
Zonal Capacity for the Exchange of Balancing Capacity or Sharing of Reserves Based on Economic Efficiency Analysis
|18 December 2019|
|Balancing Energy Platforms|
|Implementation Framework for a European Platform for the Exchange of Balancing Energy from Frequency Restoration Reserves with Manual Activation (mFRR)||24 January 2020|
|Implementation Framework for a EuropeanPplatform for the Exchange of Balancing Energy from Frequency Restoration Reserves with Automatic Activation (aFRR)||24 January 2020|
|Implementation Framework for a European Platform for the Imbalance Netting Process (INP)||24 June 2020|
|Methodology for Classifying the Activation Purposes of Balancing Energy Bids||15 July 2020|
|Methodology to Determine Prices for the Balancing Energy that Results from the Activation of Balancing Energy Bids for the Frequency Restoration Process||25 February 2022|
|Harmonisation of Imbalance Settlement|
|Harmonisation of the Main Features of Imbalance Settlement||15 July 2020|
|Settlement Rules Between TSOs|
|Common Settlement Rules Applicable to All Intended Exchanges of Energy as a Result of the Reserve Replacement Process, the Frequency Restoration Process With Manual and Automatic Activation and the Imbalance Netting Process||15 July 2020|
|All Asynchronously Connected TSOs’ Proposal for Common Settlement Rules for all Intended Exchanges of Energy Between Synchronous Areas as a Result of the Frequency Containment Process and of Ramping Restrictions||22 May 2020|
|All Asynchronously Connected TSOs’Proposal for Common Settlement Rules for All Unintended Exchanges of Energy Between Synchronous Areas||4 December 2019|