The published network codes become regulations. Use this section for a handy way to jump to a particular article of the network code.
Commission Regulation (EU) 2017/2195
establishing a guideline on electricity balancing
- Article 1 - Subject matter and scope
- Article 2 - Definitions
- Article 3 - Objectives and regulatory aspects
- Article 4 - Adoption of terms and conditions or methodologies of TSOs
- Article 5 - Approval of terms and conditions or methodologies of TSOs
- Article 6 - Amendments to terms and conditions or methodologies of TSOs
- Article 7 - Publication of terms and conditions or methodologies on the internet
- Article 8 - Recovery of costs
- Article 9 - Stakeholder involvement
- Article 10 - Public consultation
- Article 11 - Confidentiality obligations
- Article 12 - Publication of information
- Article 13 - Delegation and assignment of tasks
- Article 14 - Role of the TSOs
- Article 15 - Cooperation with DSOs
- Article 16 - Role of balancing service providers
- Article 17 - Role of balance responsible parties
- Article 18 - Terms and conditions related to balancing
- Article 19 - European platform for the exchange of balancing energy from replacement reserves
- Article 20 - European platform for the exchange of balancing energy from frequency restoration reserves with manual activation
- Article 21 - European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation
- Article 22 - European platform for imbalance netting process
- Article 23 - Cost sharing between TSOs in different Member States
- Article 24 - Balancing energy gate closure time
- Article 25 - Requirements for standard products
- Article 26 - Requirements for specific products
- Article 27 - Conversion of bids in a central dispatching model
- Article 28 - Fall-back procedures
- Article 29 - Activation of balancing energy bids from common merit order list
- Article 30 - Pricing for balancing energy and cross-zonal capacity used for exchange of balancing energy or for operating the imbalance netting process
- Article 31 - Activation optimisation function
- Article 32 - Procurement rules
- Article 33 - Exchange of balancing capacity
- Article 34 - Transfer of balancing capacity
- Article 35 - Exchange of balancing services
- Article 36 - Use of cross-zonal capacity
- Article 37 - Cross-zonal capacity calculation
- Article 38 - General requirements
- Article 39 - Calculation of market value of cross-zonal capacity
- Article 40 - Co-optimised allocation process
- Article 41 - Market-based allocation process
- Article 42 - Allocation process based on economic efficiency analysis
- Article 43 - Use of cross-zonal capacity by balancing service providers
- Article 44 - General principles
- Article 45 - Balancing energy calculation
- Article 46 - Balancing energy for frequency containment process
- Article 47 - Balancing energy for frequency restoration process
- Article 48 - Balancing energy for reserve replacement process
- Article 49 - Imbalance adjustment to the balance responsible party
- Article 50 - Intended exchanges of energy
- Article 51 - Unintended exchanges of energy
- Article 52 - Imbalance settlement
- Article 53 - Imbalance settlement period
- Article 54 - Imbalance calculation
- Article 55 - Imbalance price
- Article 56 - Procurement within a scheduling area
- Article 57 - Procurement outside a scheduling area
- Article 58 - Balancing algorithms
- Article 59 - European report on integration of balancing markets
- Article 60 - TSO report on balancing
- Article 61 - Cost-benefit analysis
- Article 62 - Derogations
- Article 63 - Monitoring
- Article 64 - Transitional provisions for Ireland and Northern Ireland
- Article 65 - Entry into force
Implementation - Making the code a reality
Automatic Frequency Restoration Reserves (aFRR) - PICASSO
The Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation (PICASSO) is the implementation project for the establishment of the European aFRR-Platform.View
Imbalance Netting (IN) – IGCC
The International Grid Control Cooperation (IGCC) is the implementation project for the establishment of the European IN-Platform.View
Replacement Reserves (RR) – TERRE
The Trans-European Replacement Reserves Exchange (TERRE) is the implementation project for the establishment of the European RR-Platform.View
Manual Frequency Restoration Reserves (mFRR) – MARI
The Manually Activated Reserves Initiative (MARI) is the implementation project for the establishment of the European mFRR-Platform.View
Frequency Containment Reserves (FCR)
The common market for procurement and exchange of FCR (FCR Cooperation) aims at the integration of balancing markets.View
Nordic aFRR capacity market
The Nordic TSOs will establish a regional balancing capacity market for aFRR balancing capacity.View
The Allocation of Cross-zonal Capacity and Procurement of aFRR Cooperation Agreement
A voluntary TSO cooperation based on the current Austrian-German aFRR balancing capacity cooperation.View
EB related Deliverables
European Stakeholder Committee
History & Development of the network code
Below you will find the Frequently asked questions relating to the network code Electricity Balancing.
Electricity Balancing is one of the key roles of Transmission System Operators where they act to ensure that generation equals demand in real time. This is vital for ensuring security of supply and has an important bearing on costs to customers. The potential for balancing resources to be effectively shared between countries can enhance security of supply and reduce cost, hence there is a strong rationale for developing cross border balancing markets. The network code on Electricity Balancing will ensure that the correct framework will be put in place for this to happen.
Latest Update (December 2016)
An updated draft of the Electricity Balancing guidelines will be discussed in the next electricity cross-border committee. Use the link below to view the EC draft version sent to the electricity cross-border committee in October 2016.
On 22 July 2015, the Agency for the Cooperation of Energy Regulators, ACER, recommended the Network Code on Electricity Balancing for adoption. On 23 December 2013, ENTSO-E delivered the Network Code on Electricity Balancing (NC EB) and Supporting Document to the Agency for the Cooperation of Energy Regulators (ACER). ACER provided its reasoned opinion on the Network Code on 23 March 2014.
ENTSO-E studied the reasoned opinion in detail. On 16 September ENTSO-E submitted a new version of NC EB, together with explanatory documents. Based on this resubmission, ACER issued a recommendation to adopt the code, along with amendments proposals. With a few exceptions, the NC EB is perfectly in line with the Framework Guidelines on Electricity Balancing. These exceptions, such as the implementation deadline for the European integration model, are motivated by ENTSO-E members experience as grid operators, and by their commitment to delivering ambitious but realistic codes.
The NC EB is a crucial piece of work that will greatly enhance Europe’s security of supply. By harmonising electricity balancing rules, trading of balancing resources between European TSOs will be facilitated; leading to a more efficient use of resources available, a reduction of costs and an increase in security of supply.
Given the complexity of balancing, its key role in European security of supply, and the low level of current European harmonisation, the NC EB is one of the most forward looking and ambitious network code so far.
ENTSO-E would like to thank all stakeholders who provided valuable contributions to the process, as well as colleagues from the European Commission, ACER and National Regulatory Authorities for the constructive cooperation during the development of NC EB.
The documents are available for download in the Related Documents and Links section below.
What Happens Next?
The Network Code will now be prepared by experts from the European Commission before it enters the Comitology process, through which it should become European law. ENTSO-E will assist both ACER and the European Commission in any way throughout this process in order to contribute to a smooth adoption.
Network codes need to be finalised and adopted by Member States, and are therefore expected to evolve over time. TSOs have however decided to begin the early implementation of a number of projects, as suggested by regulators. This will contribute to faster delivery of the IEM. ENTSO-E has proposed several cross border pilot projects with the purpose of:
- Testing the feasibility of the European (target) model and intermediate steps established in the ACER Framework Guidelines on Electricity Balancing (FG EB);
- Evaluating the associated implementation impact;
- Reporting on the experience gained.
More information at Cross Border Electricity Balancing Pilot Projects.
ENTSO-E also started working on other aspects of the ambitious path towards harmonised balancing markets in Europe. In March 2015, ENTSO-E launched a public consultation on the methodology for Cost Benefit Analysis.
Public Consultation on draft Network Code on Electricity Balancing
From 16 June to 16 August 2013, ENTSO-E held a public consultation on the draft Network Code on Electricity Balancing (NC EB). By the end of the nine-week consultation period, more than 40 stakeholders had submitted a total of 2178 individual comments via the web-based consultation tool.
ENTSO-E’s stakeholder engagement comprises of Stakeholder Advisory Group Meetings and Public Stakeholder Workshops, as well as ad-hoc meetings and exchange of views with any interested party as appropriate. The Electricity Balancing Stakeholder Advisory Group (EBSAG) members represent all relevant parts of the industry as well as consumers, to enable efficient and effective discussion on the process and content of the Network Code on Electricity Balancing. The EBSAG member organisation list may be viewed here and the Terms of Reference here.
ENTSO-E has hosted a total of four EBSAG meetings and three public stakeholder workshops on the NC EB. The latest public workshop was held in Brussels on 23 October to present and discuss the feedback received during the public consultation. This also served as an opportunity to discuss the changes made to the code in response to stakeholder feedback.
All material, including minutes and presentations from meetings are made public.