Network Codes

Engine Power Plants – A technology at the heart of the internal energy market

Network codes are a set of European rules complementing existing national measures and tackling cross-border issues in order to make the internal energy market work properly and the energy freely flow throughout the continent. Each of the 10 network codes currently being prepared at EU level are key for tomorrow’s energy system.

For EUGINE, the network code on electricity balancing is one of the most important because it will pave the way for a future harmonised Europe-wide balancing market. This will help develop flexibility solutions (including engine power plants) and solve the flexibility challenge Europe is facing, due to the growing share of variable renewable energy sources in the European energy mix. The network code on electricity balancing should play a major role in developing and integrating balancing markets at regional and then EU level. The level playing field ensured, the support to the most cost-effective flexibility solutions and the principle of stakeholders consultations by TSOs are positive steps forward. In principle, this network code should be adopted and implemented rapidly. However, it is very more important that this regulation is perfectly well drafted to ensure a proper functioning of the EU balancing system. The confusing wording on price caps in the current version of the draft network code on electricity balancing is unfortunate (article 42). Furthermore, the key principles of ‘balancing responsibility for all market participants’ (including producers of electricity from renewable energy sources) and ‘cost-reflective imbalance charges’ should have been applied at EU level and be enshrined in this regulation to develop real incentives for flexibility investments and security of supply. If the EU wants to ensure the proper functioning of balancing arrangements, the three aforementioned issues should still be solved by the European Commission before adopting the network code on electricity balancing.

EUGINE is actively contributing to the adoption and implementation process of the network codes. To make them a reality and a success, EUGINE is providing constructive input into the relevant public consultations launched by ENTSO-E, ACER or the European Commission and participate in both the ‘Balancing Stakeholder Group’ and the ‘Market European Stakeholder Committee’.



07.04.2015

EUGINE response to the ENTSO-E consultation on electricity balancing network code

EUGINE warmly welcomes the current reflection on the harmonisation of imbalance settlement periods. As the share of intermittent renewables in the overall energy mix is progressively and steadily growing, this is a very timely and important discussion. EUGINE believes that...more >

29.01.2015

EUGINE and Europgen response to the joint ACER and ENTSO-E consultation on the role of stakeholders

After four years of network codes development process, the time of finalisation, adoption and implementation has come. EUGINE and Europgen warmly welcome this consultation process and the project of establishing European stakeholder committees and dedicated European expert groups to involve...more >

21.01.2015

EUGINE response to ACER call for comments on revised network code on electricity balancing

EUGINE warmly welcomes the content of the revised version of the network code on electricity balancing as submitted by ENTSO-E to the Agency for the Cooperation of Energy Regulators (ACER). As a recent organisation, this is the first time that...more >