NC RfG - Frequently Asked Questions

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Disclaimer: This document is not legally binding. It only aims at clarifying the content of the draft network code for

    requirements for grid connection applicable to all generators. This document is not supplementing the final network code nor

    can be used as a substitute to it.

    NETWORK CODE FOR REQUIREMENTSFOR GRID CONNECTION APPLICABLE

    TO ALL GENERATORS

    FREQUENTLY ASKED QUESTIONS

    24 JANUARY 2012

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Foreword:

    ENTSO-E has been instructed by Regulation (EC) N714/2009 with the responsibility to draft network codes for

    providing and managing effective and transparent access to the transmission networks across borders, and toensure coordinated and sufficiently forward-looking planning and sound technical evolution of the transmission

    system in the European Union, with due regards to the environment.

    The elaboration process of the network codes is entirely a new legal tool which has not been experienced before.

    It should allow the European Commission to adopt a piece of legislation which will reflect the sound technical

    expertise and know-how of the European Transmission System Operators. ENTSO-E is in charge of drafting

    network codes upon request of the European Commission and in line with the framework guidelines specified by

    the Agency for the Cooperation of Energy Regulators (ACER). These network codes will then be submitted to

    ACER who will, if satisfied, recommend them to the European Commission for adoption via Comitology. A more

    detailed description of the network Code development process is provided in response to FAQ 2.

    ENTSO-E is committed to ensure thorough public consultation on its draft network codes before submission to

    ACER and is seeking for your expert views. Since the development process of the network codes is quite

    complex and has been a learning experience for all involved parties, ENTSO-E has therefore prepared this FAQ

    document to clarify the network code for requirements for grid connection which is applicable to all generators

    and explains the reasoning supporting the proposed requirements.

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Frequently Asked Questions

    1. What are the cross-border network issues and market integration issues?

    2. What is the relationship between the framework guidelines and network codes what are the responsibilities

    of both and what is the process of network code development?

    3.

    4.

    Does the network code apply in non-EU member states or in respect to cross-border issues between an EUmember state and a non-EU member state?

    How will ENTSO-E efficiently and transparently perform stakeholder consultation?

    5. What is the role of the subsidiarity and proportionality principle in the NC RfG?

    6. What is the appropriate level of detail of the network code? Is it too broad or too detailed?

    7. Why do we need some requirements to apply even for domestically connected generation? Why are differentcategories of Generating Units introduced and what are the criteria for specifying the categories?

    8. Why is the option maintained to apply the network code requirements to Existing Generating Units?

    9. Does the network code apply to Existing Generating Units? What is the situation regarding ExistingGenerating Units after the entry into force of the network code? Do existing derogations still apply after itsenforcement or will they cease?

    10. Does the network code deviate from existing requirements?

    11. How is a cost-benefit analysis going to be applied to address the question of implementation of the networkcode for Existing Generating Units?

    12. Why does the network code not define certain requirements as paid-for ancillary services?

    13. Why does the network code not specify who pays for reinforcements of existing users to be compliant withthe requirements?Who bears the costs for demonstrating compliance?

    14. Why do TSOs impose requirements for connections to the distribution networks rather than the relevantDSO?

    15. Why does the network code not provide for dispute resolutions?

    16. Why do you not develop dedicated network codes for each type of generation?

    17. Why does the network code not consider specific conditions which may apply for some Power GeneratingFacilities, in particular in industrial sites?

    18. Do the requirements have to be considered as minimum or maximum requirements; what is theunderstanding of minimum/ maximum requirements?

    19. Why do you need the wide frequency ranges for operation which do not comply with the relevant IEC

    standard 60034 for rotating electrical machines?20. Why do you need the wide voltage ranges for operation?

    21. How should the combined effect of frequency and voltage ranges be interpreted?

    22. Why do you need the wide reactive power capability range?

    23. Why do you not refer to primary, secondary and tertiary response?

    24. What is the technical background for setting the network codes Fault-Ride-Through requirements?

    25. Why is synthetic inertia needed by some TSOs?

    26. Why is Power Quality out of the scope of this code?

    As used in this paper, the capitalized words and terms shall have the meaning ascribed to them in the draftnetwork code.

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 1:

    What are the cross-border network issues and market integration issues?

    Regulation (EC) 714/2009 Article 8 (7) defines that the network codes shall be developed for cross-bordernetwork issues and market integration issues and shall be without prejudice to the Member States right toestablish national network codes which do not affect cross-border trade.

    The terms cross-border network issues and market integration issues are not defined by the Regulation.However, ENTSO-Es understanding of the terms has been derived from the targets of the EC 3rd legislativepackage for the internal electricity market:

    supporting the completion and functioning of the internal market in electricity and cross-border trade

    facilitating the targets for penetration of renewable generation

    maintaining security of supply

    Based on these targets and in the context of the network codes for grid connection, the following interpretation of

    the terms "cross-border network issues and market integration issues" has been taken as a guiding principle:

    The interconnected transmission system establishes the physical backbone of the internal electricity market.TSOs are responsible for maintaining, preserving and restoring security of the interconnected system with a highlevel of reliability and quality, which in this context is the essence of facilitating cross-border trading.

    The technical capabilities of the users play a critical part in system security. TSOs therefore need to establish aminimum set of performance requirements for generators connected to their network. The performancerequirements include robustness to face disturbances and to help to prevent any large disturbance and tofacilitate restoration of the system after a collapse.

    Secure system operation is only possible by close cooperation of power generating facilities connected at all

    voltage levels with the network operators in an appropriate way, because the system behavior especially indisturbed operating conditions largely depends on the response of Generating Units in such situations. Withrespect to system security the transmission system and the Generating Units need to be considered as oneentity. It is therefore of crucial importance that Generating Units are able to meet the requirements and to providethe technical capabilities with relevance to system security.

    Moreover, harmonization of requirements and standards at a pan-European level (although not an objective initself) is an important factor that contributes to supply-chain cost benefits and efficient markets for equipment,placing downwards pressure on the cost of the overall system.

    To ensure system security within the interconnected transmission system and to provide an adequate securitylevel, a common understanding of these requirements to power generating facilities is essential. Allrequirements that contribute to maintaining, preserving and restoring system security in order tofacilitate proper functioning of the internal electricity market within and between synchronous areas andto achieving cost efficiencies through technical standardisation shall be regarded as cross-bordernetwork issues and market integration issues.

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Figure 1: Framework guideline (FWGL) and network code (NC) development process

    As reflected in the public consultation 1 launched by the EC Establishment of the priority list for the developmentof network codes for 2012 and beyond that ended on 10 th of April 2011, one or more network code(s) maycorrespond to a single framework guideline. The ACER framework guidelines on grid connections 2

    werepublished on 20 July 2011. In total, four codes are anticipated in the next three years: connection of generation,connection of demand, connection of HVDC circuits and connection procedures. For the last two topics, nostarting date for the formal network code development process has yet been given.

    In accordance with Article 10 of Regulation (EC) 714/2009, ENTSO-E shall conduct an extensive consultationprocess while preparing the network codes, at an early stage and in an open and transparent manner, involvingall relevant market participants, and, in particular, the organisations representing all stakeholders. Thatconsultation shall also involve national regulatory authorities and other national authorities, supply and generationundertakings, system users including customers, distribution system operators, including relevant industryassociations, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of allrelevant parties during the decision-making process.

    In addition to this legal obligation, ENTSO-E has conducted an extensive dialogue with stakeholders in a pilotproject before starting the off icial development of the network code on grid connection requirements forgenerators. This cooperation with stakeholders has been managed by means of two public workshops on 16th ofApril 2010 and 05th of November 2011, that attracted around 100 participants each, and about 15 bilateral

    meetings with European associations that addressed in depth technical issues. The response of this openapproach has been overwhelming: more than 1500 comments from stakeholders were registered and thoroughlyconsidered, the network code was updated extensively and individual responses were provided to all thecomments. Since the completion of the pilot project, stakeholder engagement has continued running up to thestart of the formal consultation period by bilateral meetings, national workshops initiated by TSOs and regionalworkshops initiated by ENTSO-E.

    1 http://ec.europa.eu/energy/international/consultations/20110410_external_dimension_en.htm2http://www.acer.europa.eu/portal/page/portal/ACER_HOME/Public_Docs/Acts%20of%20the%20Agency/Framework%20Guideline/Framework%20Guidelin

    es%20On%20Electricity%20Grid%20Connections/110720_FGC_2011E001_FG_Elec_GrConn_FINAL.pdf

    Comitology (where appropriate)

    EC In consultation with all stakeholders resulting in legally binding NC

    Assessment of NC

    ACER Recommendation of NC to EC

    Develop NC (12 month period)

    ENTSO-E In consultation with stakeholders according to FWGL

    Request f or drafting NC

    EC According to FWGL submitted by ACER

    Develop FWGL (6 month period)

    ACERIn c on sultation with ENTSO-E, stakeholders, with input from Ad -Hoc

    Expert Group

    Request f or drafting FWGL

    EC On a topic identified in art.8 (6) of Regulation EC 714/2009

    Development of

    FWGL

    Development of

    NC

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 3:

    Does the network code apply in non-EU member states or in respect to cross-border issues between aEU member state and a non-EU member state?

    It is foreseen that the Network Codes will be adopted via the Comitology process in the format of an EUregulation.

    Therefore, they will become binding vis--vis non EU-countries in accordance with the following principles.

    1) For the non-EU countries which are parties to the EEA Agreement (the European Economic AreaAgreement), the EEA Agreement provides for the inclusion of EU legislation that covers the fourfreedoms the free movement of goods, services, persons and capital throughout the 30 EEAStates. The Agreement guarantees equal rights and obligations within the Internal Market for citizensand economic operators in the EEA.As a result of the EEA Agreement, EC law on the four freedoms is incorporated into the domestic law of

    the participating EFTA States. All new relevant Community legislation is also introduced through theEEA Agreement so that it applies throughout the EEA, ensuring a uniform application of laws relating tothe internal market.As energy legislation covering the functioning of the internal market falls within the scope of the EEA-Agreement, the entire body of future Network Codes will almost certainly be EEA relevant, and hence beapplicable and binding after decision by the EEA Committee and national implementation. The regularimplementation procedures will apply.

    2) As Switzerland is not a party to the EEA Agreement, the enforceability of the NC transformed into EURegulation will need to be assessed in the context of the pending negotiations between Switzerland andthe EU. However, Swiss law is also based on the principle of subsidiary. Under this principle, self-regulating measures can be taken by the parties of the sector if they reach the conclusion that these

    rules should become common understanding of the sector. Based on the subsidiarity principle it iscurrently considered by the Swiss authorities to introduce under Swiss law, new rules compliant torelevant EU-regulations by the parties of the sector.

    3) For the countries that are parties to the Energy Community Treaty, the Ministerial Council of the EnergyCommunity decided on 6 October 2011 that the Contracting Parties shall implement the Third Packageby January 2015, at the latest. Moreover, it decided to start aligning the regions network codes withthose of the European Union without delay. The Network Codes will be adopted by the EnergyCommunity upon proposal of the European Commission. The relevant network codes shall be adoptedby the Permanent High Level Group which shall seek the opinion of the Energy Community RegulatoryBoard before taking a decision.

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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 4:

    How will ENTSO-E efficiently and transparently perform stakeholder consultation?

    Over the next few years ENTSO-E will be required to develop and consult on a series of network codes coveringmost aspects of the electricity market, and the operation and the development of the electricity system. The activeinvolvement of all stakeholders, expected to be reflected through their submission of comments during ENTSO-Epublic workshops as well as during the formal consultation, is considered to be crucial for the development of thenetwork codes.

    Each consultation will be composed of the following steps:

    preparation and announcement;

    stakeholders registration;

    comments gathering assessment and management including some statistical analysis; and

    Archiving.

    Once the comments of stakeholders are assessed by ENTSO-E, they will be made publicly available, togetherwith the corresponding answers/justifications. ENTSO-E will indicate how the comments received during theconsultation have been taken into consideration and provide reasons where they have not been acted upon. Allconsultation material will remain publicly accessible for a period (envisaged to be at least one year) after the endof the consultation. Beyond this point, it will be archived by an ENTSO-E administrator so as to be available onrequest.

    To make the consultation process more user-friendly and efficient, ENTSO-E has established a web facility fortwo-way communication exchanges.

    The reader is referred for further information to the ENTSO-E publication Consultation process 3

    3

    .

    https://www.entsoe.eu/fileadmin/user_upload/_library/consultations/110628_Consultation_Process_Description.pdf

    https://www.entsoe.eu/fileadmin/user_upload/_library/consultations/110628_Consultation_Process_Description.pdfhttps://www.entsoe.eu/fileadmin/user_upload/_library/consultations/110628_Consultation_Process_Description.pdfhttps://www.entsoe.eu/fileadmin/user_upload/_library/consultations/110628_Consultation_Process_Description.pdfhttps://www.entsoe.eu/fileadmin/user_upload/_library/consultations/110628_Consultation_Process_Description.pdf
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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 5:

    What is the role of the subsidiarity and proportionality principle in the NC RfG?

    One of the primary drivers for the network code is the aim of harmonisation of requirements for generators acrossthe EU as part of the fulf ilment of the 3rd legislative package.

    However, complete harmonisation of all requirements for Generating Units is not a pragmatic or cost effectivesolution due to the geographic dispersion of generation and the variance (due to historical, topographic andgeographic effects) of network designs across Europe.

    In these cases the principle of subsidiarity is applied, with the high level harmonisation of the requirement,generally in the form of a range specified in the code, and the more specific details and/or parameters specified ata more local level. In this manner, only the harmonisation of aspects of the requirements which can only beachieved at a European level in practice by means of a European legislation (derived from a network code) isincluded in the network code, whilst maintaining the necessary flexibility in the details to apply these requirements

    more efficiently at a more local level.

    Following this principle, the requirements in the code also apply the subsidiarity principle with the individualrequirements in the code being applied to the type, size and connection point and their relevance at a Europeanlevel. Aspects of this concept are discussed in detail in FAQ 6 and FAQ 18.

    In line with the requirements in the Framework Guideline on Grid Connection, the requirements for SignificantGrid Users are categorised in the network code as follows:

    general requirements

    specific requirements for Synchronous Generating Units

    specific requirements for Power Park Modules

    specific requirements for Offshore Generation.

    Each of these categories is divided into four types with thresholds in terms of installed capacity of the GeneratingUnit and voltage level, which are set at national level by the relevant TSO and reviewed by the NationalRegulatory Authority.

    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    European Network of

    Transmission System Operators

    for Electricity

    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 6:

    What is the appropriate level of detail of the network code? Is it too broad or too detailed?

    The level of detail and the scope of the network code are in line with the scope defined by the correspondingframework guidelines provided by ACER which read as follow: Furthermore, the network code(s) shall define therequirements on significant grid users in relation to the relevant system parameters contributing to secure systemoperation, including:

    Frequency and voltage parameters;

    Requirements for reactive power; Load-frequency control related issues;

    Short-circuit current;

    Requirements for protection devices and settings;

    Fault-ride-through capability; and

    Provision of ancillary services.

    ()

    The network code(s) shall set out how the TSO defines the technical requirements related to frequency andactive power control and to voltage and reactive power management.

    All requirements in the network code have a system wide impact; however the appropriate level of detail for eachrequirement has undergone a case-by-case consideration of its purpose, taking into account the extent of thesystem-wide impact as a guiding principle. The relevant entity from the perspective of system security ispredominantly the synchronous area (Continental Europe, Nordic States, Great Britain, Ireland and Baltic States).

    For the requirements with immediate relevance to system security on the level of a synchronous area, besides a

    common level of methods and principles, common parameters and settings (thresholds, limits) are necessary toachieve a harmonized network code, since one of the aims of the network code is to harmonise requirements forGenerating Units throughout Europe to a reasonable extent to preserve system security in a non-discriminatorymanner by applying the principle of equitable treatment. Other requirements of the network code are limited to thedefinition of common methods and principles and the details have to be provided by each TSO at national level(e. g. by explicit thresholds or parameter values). This allows consideration of specific regional system conditions(e. g. areas with different system strength, density of demand or concentration of Generating Units). Thereforethe level of detail of the requirements varies and the principles of subsidiarity and proportionality are applied.

    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    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 7:

    Why do we need some requirements to apply even for domestic size of generation? Why are differentcategories of Generating Units introduced and what are the criteria for specifying the categories?

    Meeting the EU energy policy targets regarding integration of renewable sources implies that:I) Many medium and large scale renewable energy sources (RES) developments (e.g. wind) connect at

    high voltage and gradually extending to also cover offshore.II) Domestic level generation, e.g. photovoltaic (PV), in massive numbers (millions) appear within a short

    timeframe.

    The domestic level generation (II), often called micro-generation, covers domestic combined heat and power(CHP) in addition to PV. These developments may arise in new houses or as replacement of gas central heatingsystems with gas based CHP, often with as little as 1kW or less generation.

    Individually these developments (II) are not of significance with regard to maintaining security of supply. However,

    when a very large number of them respond similarly to a common stimulus (eg frequency changes) they quicklybecome a threat to security of supply through risk of tripping.

    Frequency is shared within each of the five synchronous areas mentioned in FAQ 6. Any change in frequency isexperienced immediately by micro-generation just as for large generators. To maintain security of supply, thegeneration industry is familiar with the requirement for all medium and large generators to remain connectedduring frequency disturbances, most obviously in the form of the frequency range requirements.

    Large simultaneous loss of generation is a threat to frequency stability with potentially widespread consequences.In terms of the impact on the system, loss of a large generator, say 1000MW is no different from 200 000domestic generators at 5kW each (e.g. from PV). Within a very short period, concentrations of PV units havereached a level where at certain times (sunny days) 15-25% of the total generation within some geographical

    areas comes from such sources. For example, in Germany more than 2000MW of PV was installed in a singlemonth in 2010.

    The consequences of not sufficiently addressing this issue (e.g. too narrow frequency range for some generatorsbased on RES) has unfortunately already been experienced in Europe, which led to large scale customerdisconnections.

    Examples of this include:

    Greater demand disconnection in Central Europe during the system split 4th November 2006. GWs (millionsof kWs) of RES tripped at 49.5Hz resulting in a larger frequency disturbance and consequently in a similarlylarger demand disconnection.

    On a smaller scale, but in a similar manner, an inadequate frequency range of smaller scale generation in

    GB (including RES) contributed to nationwide demand disconnection on 27 th May 2008.

    The requirements of this network code need to be forward looking. It will enter into force by means of Europeanlegislation, which means that it will be applicable for a rather long time and changes/amendments to them canonly be implemented by running through extensive European legislative procedures. Therefore the anticipatedmid- and long-term developments of the power generating portfolio need to be well considered and anticipated,which are, amongst others, clearly driven by rapidly increasing decentralised generation. Consequently it isundisputed, that smaller Generating Units will need to have capabilities to support the power transmission anddistribution system security, which are nowadays provided by bulk generation facilities only.

    In order to reflect these developments, the approach has been chosen to introduce four categories of generationunits in the network code by following the principle of subsidiarity and proportionality. The criteria for specifyingthe categories are the voltage level of grid connection and the installed capacity of a Generating Unit. Thecapacity thresholds are defined as upper limits of the lower threshold leaving the final determination of this

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    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    threshold on the discretion of national TSOs. The upper limits have been chosen from an estimation of havingsufficient generation capacity of each category and the corresponding capabilities available for secure systemoperation.

    Type A requirements are the basic level requirements, necessary to ensure capability of generation overoperational ranges with limited automated response and minimal system operator control of generation. Theyensure there is no wide scale loss of generation over system operational ranges, thereby minimising criticalevents, and requirements necessary for wide spread intervention during system critical events. Only essentialrequirements are included for Type A, limited to those aspects with potential system wide implications. For newinstallations, there is normally little or no additional cost in complying with these requirements once introduced aspart of the standard product.

    Type B requirements provide a wider level of automated dynamic response (generally with settings by theRelevant Network Operator) with higher resilience to more specific operational events to ensure use of this higherdynamic response and a higher level system operator control and information to utilise these capabilities. Theyensure automated response to alleviate and maximise dynamic generation response to system events, greater

    generator resilience of these events to ensure this dynamic response and better communication and control toleverage these capabilities.

    Type C requirements provide refined, stable and highly controllable (real time) dynamic response to provideprinciple balancing services to ensure security of supply. These requirements cover all operational network stateswith consequential detailed specification of interactions of requirements, functions, control and information toutilise these capabilities. They ensure real time system response necessary to avoid, manage and respond tosystem events. These requirements provide sufficient generation functionality to respond to both intact andsystem disturbed situations, and the need for information and control necessary to utilise this generation over thisdiversity of situations.

    Type D requirements cover a wide area of control and range of operation They ensure specific needs for higher

    voltage (equal to or greater than 110kV) networks and their operation and stability over wide areas, allowing theuse of balancing services from generation Europe wide. For this reason the requirements apply also for largegeneration connected at a lower voltage, but above a given capacity threshold.

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    European Network of

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    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 8:

    Why is the option maintained to apply the network code requirements to Existing Generating Units?

    The option is maintained to apply the network code requirements to Existing Generating Units because thisprinciple is required by the ACER Framework Guidelines. The ACER Framework Guidelines provides that thenetwork code requirements will apply to Existing Generating Units if the relevant TSO has proposed anapplication to Existing Generating Units and if this proposal has been approved by the National RegulatoryAuthority (see FAQ 9).

    A network code requirement shall apply to an Existing Generating Unit only if it is demonstrated by a quantitativecost-benefit analysis and that the costs to fulfil this requirement are in an acceptable relation to the benefits to thepower system (see FAQ 11).

    Currently the European power systems are changing rapidly: the internal market evolves, renewable generationincreases, new transmission technologies, like FACTS (Flexible AC Transmission Systems), HVDC (High Voltage

    Direct Current) lines, etc. are introduced. In this situation there is a high uncertainty in anticipating the needs forpower system security for the next 20 years. On the other hand, the requirements of this network code will beentered into force by means of European legislation, which means that they will be applicable for a rather longtime and changes/amendments to them can only be implemented by running through extensive Europeanlegislative procedures. Hence, it is essential to have the possibility to apply network code requirements to existingplants. Such application will be pursued in very particular and reasonable cases and, with all the necessarysafeguards and respecting the provision of ACERs Framework Guidelines.

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    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 9:

    Does the network code apply to Existing Generating Units? What is the situation of Existing GeneratingUnits after the entry into force of the network code? Do existing derogations still apply after itsenforcement or will they cease?

    In the context of the network code, an Existing Generating Unit is a unit which:

    - is either physically connected to the Network, or- under construction, or- has a confirmation by the Power Generating Facility Owner that a final and binding contract for the

    construction, assembly or purchase of the main plant, i.e. prime mover, generator, etc., of theGenerating Unit exists at the day of the entry into force of the network code.

    As requested by the ACER Framework Guidelines, the network code shall apply to New Generating Units. It shallapply to Existing Generating Units as well, if this has been proposed by the relevant TSO on a national level and

    this proposal has been approved by the National Regulatory Authority. Depending on the proposal by the relevantTSO (and the regulators approval) there can be a variety of application to Existing Generating Units:

    All Existing Generating Unit shall meet all requirements

    All Existing Generating Units shall meet selected requirements

    Selected Existing Generating Units shall meet all requirements

    Selected Existing Generating Units shall meet selected requirements

    Once approved and applied to a certain Existing Generating Unit, this unit shall meet those requirements whichare covered by this approval without any exemption, regardless whether it possesses a derogation from thisrequirement, which was issued on a national level before the network code entered in force. In respect of thenetwork codes, such former derogations are invalid. Derogations will have to be sought specifically from the

    requirements of the network code by applying for them according to the procedure for derogation defined in thenetwork code.

    However, Existing Generating Units, which are not covered by the network code, shall continue to be bound bysuch technical requirements that apply to them pursuant to legislation in force in the respective Member States orcontractual arrangements in force. Consequently, existing national/ local derogations may remain in force as well,provided that they refer to a requirement not covered by the EU network code.

    Although existing derogations are not suitable evidence of derogation from the network code in case ofapplication to Existing Generating Units, such documentation can however provide useful background informationwhen preparing the derogation application regarding the network code.

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    ENTSO-E NETWORK CODE ON GRID CONNECTION FREQUENTLY ASKED QUESTIONS

    ENTSO-E AISBL Avenue Cortenbergh 100 1000 Brussels Belgium Tel +32 2 741 09 50 Fax +32 2 741 09 51 [email protected] www.entsoe.eu

    Answer to FAQ 10:

    Does the network code deviate from existing requirements?

    One of the aims of the network code is to harmonise the requirements for Generating Units throughout Europe toa reasonable extent to preserve system security in a non-discriminatory manner by applying the principle ofequitable treatment. Consequently, this network code cannot be in line with all existing requirements in eachindividual country by nature, because they do not currently provide the necessary level of harmonisation.Deviations mainly result from both horizontal (between TSOs) and vertical (between TSOs and DSOs)harmonisation of requirements to better prepare for the emerging changes to the electricity transmission anddistribution systems, in particular with regard to distributed renewable generation.

    Harmonising grid connection requirements provides the opportunity to improve system security by learning fromexperiences due to the diversities in the European countries, e.g. those which already have a high penetration ofrenewable and distributed generation sources. This will support other countries to have clear and satisfactory gridconnection requirements for forthcoming generation facilities. It needs to be understood that, in the case of

    renewable energy, the higher the level of fulfillment of requirements, the higher the penetration level that can bereached in the European countries.

    ENTSO-E believes that there is no significant deviation from existing requirements, because the network codehas been developed by taking and improving requirements from different existing national codes and regulationsthat have proven their efficiency on the respective issue and could be considered as best practice.

    The draft network code was challenged against existing requirements by stakeholders during the informalconsultations. The huge number of comments received enabled a further cross-check with existing standards andrequirements. The stakeholder comments were assessed and have either lead to according amendments to thenetwork code or the original position has been retained and justified.

    The network code deviates from existing standards in the following aspects:1. Number and strictness of requirements: the change is modest for most countries.2. Generating Units affected by the requirements: A larger number of smaller units has to fulfill the

    requirements. Therefore one major change of the network code compared to existing national codes andregulations is that requirements which are relevant for system security are established even for unitsconnected to the distribution griddue to a larger proportion of smaller RES generation expected to beconnected in the future.

    3. Compliance procedures and tests: Intensity of compliance testing and, consequently, the costs attachedwill increase.

    4. The NC RfG will require Distribution System Operators to take a greater role in ensuring compliance ofgenerators connected to their system. This will require greater resource within the DSOs than at present,but will lead to greater levels of network security.

    In the following paragraphs an overview of the situation in the different synchronous areas is given:

    Continental Europe (former UCTE)The Continental European Region includes more than 20 TSOs with many grid codes. Already in 2008 UCTEpublished a TECHNICAL PAPER DEFINITION OF A SET OF REQUIREMENTS TO GENERATING UNITS,which was a big step forward with regards to harmonisation of requirements for generators. This paper was takeninto account in the development of the network coderesulting in the network code reflecting well the requirementsof UCTE. As a consequence, the network code very well reflects the requirements of the former UCTE forContinental Europe. In addition, the network code provides improved specifications and many clarifications forexisting requirements, in particular in the field of compliance monitoring.

    Nordic States (former NORDEL)The Nordic states (Denmark, Finland, Norway and Sweden) have their own national generator codes, which donot fully cover all requirements for Generating Units which are considered necessary in future. There is also a

    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