|Transitional provisions and derogations in the ENTSO-E Draft Network Code for Grid Connections of Generators – issues that must not be overlooked|
|Thursday, 22 March 2012 19:08|
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An existing generating unit which is not compliant with a provision of the Network Code should apply for derogation within 12 months from the day the requirement, of which it is not compliant with, becomes applicable.
The network operator will have the right to refuse the operation of the generating unit, if the 12 months period terminates without an application for derogation.
On 20 March 2012 ended consultations carried out by the ENTSO-E on the Draft Network Code for Requirements for Grid Connection applicable to all Generators (available at https://www.entsoe.eu/consultations/document/docdetails.do?uid=0004-be44-30e2-8240-60ce& - in the rest of the article referred to as the ‘Network Code’).
The web based consultation ran from 24 January 2012 and engaged more than 100 stakeholders throughout Europe, with over 6000 comments on the Network Code received.
Pursuant to the ENTSO-E notice after consideration ENTSO-E will adopt the Network Code and submit it to ACER.
The Network Code will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It will apply as from the day of expiration of a 3 year period following its publication.
The Network Code categorises generating units which are considered significant (i.e having impact on the cross-border system performance) into four different types A , B, C and D with divergent technical requirements. The applicability and extent of the requirements a generating units have to comply with depends on the voltage level of their connection point and their MW capacity.
For generating units that do not comply with the said requirements the separate procedure for granting derogations (see: Article 52 et seq.) is foreseen. With respect to this issue regard should be had to the differentiation between ‘Existing Generating Unit’ and ‘New Generating Unit’ (for definitions see box). These terms are used hereinafter in the defined meaning.
The requirements set forth by the Network Code apply generally to New Generating Units unless otherwise provided in the Network Code.
1. THE APPLICABILITY OF THE NETWORK CODE TO EXISTING GENERATING UNITS
The requirements set forth by the Network Code apply to Existing Generating Units, to the extent their applicability has been decided by the National Regulatory Authority, and if this has been proposed by the Relevant TSO (Transmission System Operator), following a public consultation. The proposal by the Relevant TSO will be made in particular on the basis of a sound and transparent quantitative cost-benefit analysis, including the costs of requiring compliance.
Prior to the Relevant TSO carrying out the quantitative cost-benefit analysis an initial qualitative cost benefit analysis will be undertaken in order to determine the cases of sizes of generators or types of generators or locations of generators or clauses of the Network Code for which there may be a viable case for application to Existing Generators.
Existing Generation Facilities not covered by the above will continue to be bound by such technical requirements that apply to them pursuant to legislation in force in the respective Member States or contractual arrangements in force. Should national legislation be repealed or cease to be in force, the Existing Generation Facility will continue to be bound by such technical requirements that applied to it pursuant to the respective national legislation such as it was the day prior to it ceasing to be in force.
2. THE APPLICABILITY OF THE NETWORK CODE TO EXISTING GENERATING UNITS NOT YET UNDER CONSTRUCTION
a) Within a delay not exceeding six months as from the day of entry into force of the Network Code, the Power Generating Facility Owner should provide the relevant Network Operator with a confirmation of each final and binding contract it has concluded for the construction, assembly or purchase of the main plant of a Generating Unit with relevance to the provisions of the Network Code and which exists on the day of entry into force of the Network Code.
b) The confirmation should at least indicate the contract title, its date of signature and of entry into force, and the specifications of the main plant to be constructed, assembled or purchased.
c) The relevant Network Operator may demand that the National Regulatory Authority confirms the existence, relevance and finality of such a contract, i.e. that its material terms can no longer be changed by one of the parties to the contract unilaterally and that no party to the contract has the right to terminate it at will. The Power Generating Facility Owner should supply the National Regulatory Authority with all documents, in whatever form, as the auditor requests in order to ascertain that a binding and final contract exists.
d) The Generating Unit confirmed, in accordance with the procedure set forth in points (a) to (c) above, will be considered as an Existing Generating Unit, provided that:
1) In accordance with points (a) and (b) above, the relevant Network Operator is provided with sufficient evidence of the existence of binding and final contracts for the construction, assembly or purchase of the main plant of a Generating Unit on the day of entry into force of the Network Code; or
2) Following the verification performed by the auditor in accordance with points (c) above, it is ascertained that binding and final contracts for the construction, assembly or purchase of the main plant of a Generating Unit exist on the day of entry into force of the Network Code.
e) In case the Power Generating Facility does not provide the Network Operator with the confirmation within the delay set forth above, the Generating Unit is considered as a New Generating Unit.