Article 2 of the Network Code on System Operation
1. The rules and requirements set out in this Regulation shall apply to the following SGUs:
(a) existing and new power generating modules that are, or would be, classified as type B, C and D in accordance with the criteria set out in Article 5 of Commission Regulation (EU) 2016/631;
(b) existing and new transmission-connected demand facilities;
(c) existing and new transmission-connected closed distribution systems;
(d) existing and new demand facilities, closed distribution systems and third parties if they provide demand response directly to the TSO in accordance with the criteria in Article 27 of Commission Regulation (EU) 2016/1388;
(e) providers of redispatching of power generating modules or demand facilities by means of aggregation and providers of active power reserve in accordance with Title 8 of Part IV of this Regulation; and
(f) existing and new high voltage direct current (‘HVDC’) systems in accordance with the criteria in Article 3(1) of Commission Regulation (EU) 2016/1447.
2. This Regulation shall apply to all transmission systems, distribution systems and interconnections in the Union and regional security coordinators, except transmission systems and distribution systems or parts of the transmission systems and distribution systems located in islands of Member States of which the systems are not operated synchronously with Continental Europe (‘CE’), Great Britain (‘GB’), Nordic, Ireland and Northern Ireland (‘IE/NI’) or Baltic synchronous area.
3. Where more than one TSO exists in a Member State, this Regulation shall apply to all TSOs in a Member State. Where a TSO does not have a function relevant to one or more obligations under this Regulation, Member States may, under the national regulatory regime, provide that the responsibility of a TSO to comply with one or some or all obligations under this Regulation is assigned to one or more specific TSOs.
4. The TSOs of Lithuania, Latvia and Estonia are, as long as and to the extent that they are operating in a synchronous mode in a synchronous area where not all countries are bound by Union legislation, exempted from the application of the provisions listed in Annex I to this Regulation, unless otherwise foreseen in a cooperation agreement with third country TSOs setting the basis for their cooperation concerning secure system operation pursuant to Article 13.
5. Where the requirements under this Regulation are to be established by a relevant system operator that is not a TSO, Member States may provide that instead the TSO be responsible for establishing the relevant requirements.