Regional Operational Centres (ROCs)
European Union Electricity Market Glossary

 


 

 

Regional Operational Centres (ROCs) are bodies envisioned by the so-called "Winter Energy Package" and, in particular, Articles 21(6), 32 - 44, Recitals 33 - 37 and Annex I of the Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD).

 

Regional Operational Centres will be organised in a legal form stipulated in Article 1 of Directive 2009/101/EC of the European Parliament and of the Council (for example, in United Kingdom in the form of companies incorporated with limited liability).

 

Regional Operational Centres are intended to complement the role of transmission system operators (TSOs) by performing functions of regional relevance.

 

The ROCs' role will, in particular, consist in the annual calculation of the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located.

 

Such a calculation will be required for each bidding zone border.

 

Pursuant to Article 8 of the Proposal for a Regulation of the European Parliament and of the Council establishing a European Union Agency for the Cooperation of Energy Regulators (recast), 30.11.2016, COM(2016) 863 final 2016/0378 (COD) the European Union Agency for the Cooperation of Energy Regulators (ACER) is assigned the following tasks and competences as regards the Regional Operational Centres:

- monitoring and performance analyses,
- deciding on the ROC's configuration,
- requesting information from ROC's,
- issuance of opinions and recommendations.

 

It is particularly noteworthy that pursuant to Article 38(2) of the aforementioned draft Regulation Regional Operational Centres are granted the right to adopt binding decisions addressed to the transmission system operators in respect of the following functions:

- coordinated capacity calculation,

- coordinated security analysis,

- regional sizing of reserve capacity,

- calculate the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms.

 

The draft regulation further stipulates that transmission system operators must implement the aforementioned binding decisions issued by the Regional Operational Centres except in cases when "the safety of the system will be negatively affected".

 

According to Article 39(3) of the draft Regulation, the request for revision shall not suspend such binding decision except in cases when the safety of the system will be negatively affected.

 

Under the 'Winter Energy Package' ENTSO for Electricity has the following tasks with respect to regional operational centres:

 

- adoption of a framework for the cooperation and coordination between regional operational centres,



- adoption a proposal defining the system operation region covered by each regional operational centre.

 

However, in the policy statement of 15 March 2017 "Key Recommendations for the Clean Energy Package", ENTSO-E has heavily criticised the European Commission's propositions, ENTSO-E, in particular, said: "having binding powers given to ROCs is incompatible with Member State responsibilities in terms of security of supply."

 

In the said document ENTSO-E added that the most troublesome elements of the proposed Regulation relate to:


- the geographical scope (regional) of reserve sizing is in conflict with the national legal framework: sizing of reserves is an essential element of secure system operation for which national TSOs are liable.


- the geographical scope of (regional) reserve capacity procurement may well not be the ideal geographical allocation for reserve capacity procurement.

 

ENTSO-E concludes that the decision on the amount of cross-border capacity for the participation of foreign capacity should be let to TSOs rather than assigned to Regional Operation Centres.

 

 

 

Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD), Article 21(6), Articles 32 - 44, Recitals 33 - 37

 

Article 21(6)

 

Regional operational centres established pursuant to Article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located. A calculation is required for each bidding zone border.

 

Article 32


Establishment and mission of regional operational centres

1. By [OP: twelve months after entry into force], all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter. Regional operational centres shall be established in the territory of one of the Member States of the region where it will operate.

2. Regional operational centres shall be organised in a legal form as referred to in Article 1 of Directive 2009/101/EC of the European Parliament and of the Council.

3. Regional operational centres shall complement the role of transmission system operators by performing functions of regional relevance. They shall establish operational arrangements in order to ensure the efficient, secure and reliable operation of the interconnected transmission system.

 

Article 33


Geographical scope of regional operational centres

 

1. By [OP: six months after entry into force of this Regulation] the ENTSO for Electricity shall submit to the Agency a proposal defining system operation regions covered by regional operational centres, taking into account existing regional security coordinators, on the basis of the following criteria:

(a) the grid topology, including the degree of interconnection and of interdependency of the power systems in terms of flows;

(b) the synchronous connection of the systems;

(c) the size of the region, which shall cover at least one capacity calculation region;
(d) the geographical optimization of balancing reserves.

2. Within three months of receipt, the Agency shall either approve the proposal defining the system operation regions or propose amendments. In the latter case, the Agency shall consult the ENTSO for Electricity before adopting the amendments. The adopted proposal shall be published on the Agency's website.

 

Article 34


Tasks of regional operational centres

 

1. Each regional operational centre shall perform all the following functions in the system operation region where it is established and regional operational centres shall perform at least the following functions, set out in more detail in Annex I:

(a) coordinated capacity calculation;
(b) coordinated security analysis;
(c) creation of common system models;
(d) consistency assessment of transmission system operators' defense plans and restoration plans;

(e) coordination and optimization of regional restoration;
(f) post-operation and post-disturbances analysis and reporting;
(g) regional sizing of reserve capacity;
(h) facilitate the regional procurement of balancing capacity;
(i) regional week ahead to intraday system adequacy forecasts and preparation of risk reducing actions;

(j) outage planning coordination;

(k) optimisation of compensation mechanisms between transmission system operators;

(l) training and certification;

(m) identification of regional crisis scenarios according to Article 6(1) of [Regulation on risk preparedness as proposed by COM(2016) 862] if this task is delegated by ENTSO for Electricity;

(n) preparation and carrying out of yearly crisis simulations in cooperation with competent authorities according to Art 12(3) of [Regulation on risk preparedness as proposed by COM(2016) 862];

(o) tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional operational centres pursuant to Article 6 (1) of [Regulation on risk preparedness as proposed by COM(2016) 862];

(p) tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional operational centres pursuant to Article 9 (2) of [Regulation on risk preparedness as proposed by COM(2016) 862];

(q) calculate the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms pursuant to Article 21 (6).

2. The Commission may add other functions to the regional operational centres, not involving decision making power, pursuant to Chapter VII of this Regulation.

3. Transmission system operators shall provide their regional operational centre with the information necessary to carry out its functions.

4. Regional operational centres shall provide transmission system operators of the system operation region with all the information necessary to implement the decisions and recommendations proposed by the regional operational centres.

 

Article 35


Cooperation within regional operational centres

 

1. The day-to-day operation of regional operational centres shall be managed through cooperative decision-making. The cooperative-decision making process shall be based on:

(a) working arrangements to address planning and operational aspects related to the functions, in accordance with Article 36;

(b) a procedure for consulting the transmission system operators of the system operation region in the exercise of its operational duties and tasks, in accordance with Article 37;

(c) a procedure for the adoption of decisions and recommendations in accordance with Article 38;

(d) a procedure for the revision of decisions and recommendations adopted by regional operational centres in accordance with Article 39.

 

Article 36
Working arrangements

 

1. Regional operational centres shall develop working arrangements to address planning and operational aspects related to the functions to be performed, taking into account, in particular, the specificities and requirements of those functions as specified in Annex 1.

2. Regional operational centres shall ensure that the working arrangements contain rules for the notification of parties concerned.

 

Article 37
Consultation procedure

 

Regional operational centres shall develop a procedure to organise, in the exercise of their daily operational duties and tasks, the appropriate and regular consultation of transmission system operators and of relevant stakeholders. In order to ensure that regulatory issues can be addressed, regulatory authorities shall be involved when required.

 

Article 38


Adoption of decisions and recommendations

 

1. Regional operational centres shall develop a procedure for the adoption of decisions and recommendations.

2. Regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points (a), (b), (g) and (q) of Article 34(1). Transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected.

3. Regional operational centres shall adopt recommendations addressed to the transmission system operators for the functions referred to in points (c) to (f) and (h) to (p) of Article 34(1).

4. The regulatory authorities of a system operation region may jointly decide to grant binding decision-making powers to the regional operational centre for one or more of the functions provided for in points (c) to (f) and (h) to (l) of Article 34(1).

 

Article 39


Revision of decisions and recommendations

 

1. Regional operational centres shall develop a procedure for the revision of decisions and recommendations.

2. The procedure shall be triggered at the request of one or more of the transmission system operators of the system operation region. Following the revision of the decision or recommendation, regional operational centres shall confirm or modify the measure.

3. Where the measure subject to revision is a binding decision in accordance with Article 38(2), the request for revision shall not suspend the decision except in cases when the safety of the system will be negatively affected.

4. Where the measure subject to revision is a recommendation in accordance with Article 38(3) and following its revision a transmission system operator decides to deviate from the recommendation, the transmission system operator shall submit a detailed justification to the regional operational centre and to the other transmission system operators of the system operation region.

 

Article 40


Management board of regional operational centres

 

1. In order to adopt measures related to their governance and to monitor their performance, the regional operational centres shall establish a management board.

2. The management board shall be composed of members representing the transmission system operators and of observers representing the regulatory authorities of the system operation region. The representatives of the regulatory authorities shall have no voting rights.

3. The management board shall be responsible for:

(a) drafting and endorsing the statutes and rules of procedure of the regional operational centre;

(b) deciding upon and implementing the organisational structure;
(c) preparing and endorsing the annual budget;

(d) developing and endorsing the cooperative decision-making processes in accordance with Article 35.

4. The competences of the management board shall exclude those that are related to the day-to-day activities of regional operational centres and the performance of its functions.

 

Article 41
Organisational structure


1. Regional operational centres shall set up and manage their organisation according to a structure that supports the safety of their functions.

Their organisational structure shall specify:

(a) the authority, duties and responsibilities of the management personnel;

(b) the relationship and reporting lines between different parts and processes of the organisation.

2. Regional operational centres may set up regional desks to address local specificities or back-up operational centres for the efficient and reliable exercise of their functions.

 

Article 42
Equipment and staff

 

Regional operational centres shall be equipped with all the human, technical, physical and financial resources necessary for fulfilling their obligations under this Regulation and carrying out their functions.

 

Article 43
Monitoring and reporting

 

1. Regional operational centres shall establish a process for the continuous monitoring of at least:

(a) their operational performance;
(b) the decisions and recommendations issued and the outcome achieved;
(c) the effectiveness and efficiency of each of the functions for which they are responsible.

2. Regional operational centres shall submit to the Agency and to the regulatory authorities of the system operation region the data resulting from their continuous monitoring at least annually.

3. Regional operational centres shall establish their costs in a transparent manner and report them to the Agency and to the regulatory authorities of the system operation region.

4. Regional operational centres shall submit an annual report concerning their performance to ENTSO for Electricity, the Agency, the regulatory authorities of the system operation region and the Electricity Coordination Group established pursuant to Article 1 of Commission Decision 2012/C 353/0241.

5. Regional operational centres shall report shortcomings identified in the monitoring process under paragraph 1 to ENTSO for electricity, the regulatory authorities of the system operation region, the Agency and the competent authorities of Member States responsible for the prevention and management of crisis situations.

 

Article 44
Liability

 

Regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks, in particular, where it adopts decisions binding on transmission system operators concerning the functions of coordinated capacity calculation and operational planning security analysis. The method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available.

 

Recitals 33 - 37

 

(33) The coordination between transmission system operators at regional level has been formalised with the mandatory participation of transmission system operators in regional security coordinators, which should be complemented by an enhanced institutional framework via the establishment of regional operational centres. The creation of regional operational centres should take into account existing regional coordination initiatives and support the increasingly integrated operation of electricity systems across the Union, ensuring their efficient and secure performance.

 

(34) The geographical scope of regional operational centres should allow them to play an effective coordination role by optimising the operations of transmission system operators over larger regions.

 

(35) Regional operational centres should carry out functions where their regionalisation brings added value compared to functions performed at national level. The functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional system operation, market operation and risk preparedness functions. The functions carried out by regional operational centres should exclude real time operation of the electricity system.

 

(36) Regional operational centres should primarily act in the interest of system and market operation of the region over the interests of any single entity. Hence, regional operational centres should be entrusted with decision-making powers to act and to direct actions to be taken by transmission system operators of the system operation region for certain functions and with an enhanced advisory role for the remaining
functions.

 

(37) ENTSO for Electricity should ensure that the actions of regional operational centres are coordinated across the regions' boundaries.

 

 

 



Last Updated on Saturday, 04 November 2017 22:41
 

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