Cost Benefit Analysis according to NC EB
The Network Code on Electricity Balancing (NC EB)1 covers three major aspects of balancing namely:
- Procurement of balancing services;
- Reservation and use of cross zonal capacity for balancing; and
- TSO settlements.
The NC EB requires a cost benefit analysis (CBA) be undertaken in support of various decisions:
European Integration Model (Article 16(3), 18(3), 20(3), 22(3)): CBA to support TSOs’ proposal to modify the European integration model (Replacement Reserves (RR), Frequency Restoration Reserves with manual activation (FRR-m), Frequency Restoration Reserves with automatic activation (FRR-a)), and the imbalance netting process); and
Application of a TSO-BSP model (Article 41(2)): CBA to identify the efficiency of the application of a TSO-BSP model for at least the control area or scheduling area for the relevant TSOs. In addition, the Agency for the Cooperation of Energy Regulators (ACER) proposes that its recommendation on the Imbalance Settlement Period is assessed by a cost benefit analysis to be undertaken by ENTSO-E before the NC EB enters the Comitology process.
In addition, the Agency for the Cooperation of Energy Regulators (ACER) proposes that its recommendation on the Imbalance Settlement Period is assessed by a cost benefit analysis to be undertaken by ENTSO-E before the NC EB enters the Comitology process.
Methodologies for performing CBAs
ENTSO-E has asked Frontier Economics and Consentec to develop a general methodology for TSOs in relation to the completion of the CBAs envisaged in the NC EB, and a specific methodology for the completion of the CBA for ISP harmonisation.
Cost benefit analysis for the Imbalance Settlement Period
The NC EB requires all TSOs to develop a proposal to harmonise the main features of imbalance settlement, subject to approval by all NRAs. However, the Imbalance Settlement Period duration falls outside this proposal and will be drafted into the final version of the NC EB. ACER has reviewed the draft NC EB and has proposed that the Imbalance Settlement Period duration be harmonised at 15 minutes. ACER also proposes that its recommendation on the Imbalance Settlement Period is assessed by a cost benefit analysis (CBA) to be undertaken by ENTSO-E before the NC EB enters the Comitology process.
Following on from the development of the methodologies, ENTSO-E has asked Frontier to support the process of undertaking a CBA of a change in ISP. To secure relevant inputs to the CBA process, ENTSO-E is asking for data from stakeholders across Europe, via a questionnaire.
- 13 November 2015: ENTSO-E distributes questionnaire to stakeholders.
- 7 December 10:00 -12:00 (extension possible until 14:00): Stakeholder webconference Q&A.
- 7 January 10:00 – 12:00 (extension possible until 14:00): Stakeholder webconference Q&A.
- 14 January 2016: Deadline for submitting answered questionnaires
- 14-27 January 2016: Deadline for ENTSO-E data consolidation and review
- 8 March 2016, 10:00-13:00, webinar:
Webinar Over Download Webinar Presentation
- 13 April 2016, Balancing Stakeholder Group Meeting for BSG members
15 April 2016, Stakeholder workshop and passive webinar
- 29 April 2016 Deadline for the draft CBA report for submission to EC.
- Finalization of the report.
Cover Letter to EC Final CBA Report
ENTSO-E invites stakeholder to participate in the survey. Feedback is desired from stakeholders from EU countries, Liechtenstein, Norway and Switzerland. Feedback from stakeholders from other countries, such as the Energy Community, is also welcomed.
- Data provider
- End consumer (metered)
- Generator (metered)
- Market operator
- Meter provider
- Metering service provider
- Power exchange
- Retail supplier
For information and to send input on the CBA on ISP please use the following email address