Implementation Network Codes: status update

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1 Implementation Network Codes: status update WG Belgian Grid 14/06/2018 A. Tsiokanos

2 Status public consultation and submission Full scope info session 12/3/2018 CuRe NC Workshop 29/3/2018 Submission: - FGC proposal - Gen. Req. - ABCD proposal 17/5/2018 Submission T&C BRP/BSP 18/6/ mrt apr mei jun 2018 Public consultation FGC Public consultation GR 15/3-16/4 15/3-23/4 Public consultation T&C BRP/BSP 15/3-15/5 17 May 2018 = Federal Grid Code + + General Req. Proposal ABCD + Consulta - tion report Storage Req. Proposal Public consultation Submission Federal Grid Code FRA + NED FRA + NED (report FR/NL) General Requirements ENG FRA + NED (+ ENG) T&C BRP FRA + NED FRA + NED T&C BSP ENG FRA + NED WG Belgian Grid - Implementation Network Codes All final proposals Federal Grid Code and General Requirements published on Elia website (see page WG Belgian Grid) 2

3 Next steps proposals Federal Grid Code, General Requirements and ABCD thresholds (*) o Federal Grid Code = Royal Decree which implies a formal procedure of on average 6 months to approve it. Elia submits proposal Review by FOD/SPF Advice CREG ( 40d) Advice Inspectorate of Finance Review Advice advices Review by by Council of FOD/SPF FOD/SPFState (30d) Approval FGC 17 May 18 Start summer Ongoing activities: Discussions with grid operator Discussions with Regions (ENOVER) FOD/SPF analyses the proposal and submits an amended version for advice to CREG (*) Timeline, activities and milestones based on presentation by FOD/SPF in Plenary UG meeting 25 April 18 WG Belgian Grid - Implementation Network Codes 3

4 Investment uncertainty Entry into force RfG 17/5/16 Legal uncertainty New vs. Existing RfG entry into force + 2y 17/5/18 Decision GR 17/11/18 Approval FGC End Q Full RfG in application RfG publication + 3y 27/4/19 Old New Investment vacuum Art. 4.2 RfG: For the purposes of this Regulation, a power-generating module shall be considered existing if: (a) it is already connected to the network on the date of entry into force of this Regulation; or (b) the power-generating facility owner has concluded a final and binding contract for the purchase of the main generating plant by two years after the entry into force of the Regulation. Art. 7.4 RfG The relevant system operator or TSO shall submit a proposal for requirements of general application, or the methodology used to calculate or establish them, for approval by the competent entity within two years of entry into force of this Regulation. On 17 May 2018, several investments considered as new while no decision by competent authorities on the applicable requirements Investment vacuum Mitigation possibility in Art. 4.2: postponing the date for a GU to become new with 1 year (as France and UK already did) A Member State may provide that in specified circumstances the regulatory authority may determine whether the powergenerating module is to be considered an existing power-generating module or a new power-generating module. 4 WG Belgian Grid - Implementation Network Codes

5 Recap article 4(2) of the NC RfG Article 4(2) of the NC RfG: For the purposes of this Regulation, a power-generating module shall be considered existing if: (a) it is already connected to the network on the date of entry into force of this Regulation; or (b) the power-generating facility owner has concluded a final and binding contract for the purchase of the main generating plant by two years after the entry into force of the Regulation. The power-generating facility owner must notify the relevant system operator and relevant TSO of conclusion of the contract within 30 months after the entry into force of the Regulation. The notification submitted by the power-generating facility owner to the relevant system operator and to the relevant TSO shall at least indicate the contract title, its date of signature and date of entry into force and the specifications of the main generating plant to be constructed, assembled or purchased. A Member State may provide that in specified circumstances the regulatory authority may determine whether the power-generating module is to be considered an existing power-generating module or a new power-generating module. WG Belgian Grid - Implementation Network Codes 5

6 Extract of general comments received during the public consultation FGC and GR COGEN: COGEN vraagt dat installaties pas als bestaand worden beschouwd voor zover ze geen detailstudie hebben aangevraagd voor de inwerkingtreding van het FTR. BOP: Om de rechtszekerheid voor de projecten in ontwikkeling te verbeteren dient de mogelijkheid te bestaan om een verlenging van de 2 jarige periode toe te staan, zodat alle huidige windparken op zee onder de definitie van bestaande installatie vallen. Niet-gereguleerde netgebruikers: De netgebruikers roepen alle betrokken dan ook om deze onzekerheid zo snel mogelijk weg te nemen zodat het investeringsklimaat niet negatief wordt beïnvloed. Artikel 4.2, laatste zin, van de NC RfG biedt daartoe de mogelijkheid. [ ] Deze mogelijkheid werd reeds gebruikt in Frankrijk en het Verenigd Koninkrijk door de datum vanaf wanneer een installatie in principe als nieuw moet worden beschouwd met een jaar te verschuiven. In België zou de datum vanaf wanneer een installatie als nieuw wordt beschouwd thans 17 mei eveneens kunnen aangepast worden zodat die samen valt met de inwerkingtreding van het FTR. Gelijkaardige bepalingen gelden voor de DCC en de netgebruikers vragen dan ook dat ook voor de installaties die onder de DCC vallen van dergelijke mogelijkheid gebruik wordt gemaakt om te vermijden dat er een negatieve impact zou zijn op investeringsbeslissingen door onnodige onzekerheid en risico s. WG Belgian Grid - Implementation Network Codes 6

7 Kapstok has been created in proposal FGC Art. 1 3 of the amendment proposal Federal Grid Code: 3. Krachtens de respectieve artikelen 4.2 van de Europese netcodes RfG, DCC en HVDC, bepaalt de commissie in volgende omstandigheden [ ] wanneer de in deze netcodes bedoelde installaties, elektriciteitsproductie-eenheden en systemen als nieuw worden beschouwd. Voor asynchrone opslag treden de bepalingen van dit besluit in werking op, met uitzondering van de bepalingen van Titel III, welke in werking treden op de datum bepaald door de commissie voor de elektriciteitsproductie-eenheden krachtens onderhavig 3.Titel III doet geen afbreuk aan van toepassing contractuele afspraken voor de bestaande asynchrone opslag En vertu des articles 4.2 respectifs des codes de réseau européens RfG, DCC et HVDC, la commission détermine dans les circonstances suivantes [ ] quand les installations, unités de production d électricité et systèmes visés dans ces codes de réseau européens sont considérés comme nouveaux. Pour les parcs non-synchrones de stockage, les dispositions du présent arrêté entrent en vigueur le, à l exception des dispositions du Titre III, lesquelles entrent en vigueur à la date déterminée par la commission pour les unités de production d électricité en vertu du présent 3. Le Titre III ne porte pas préjudice aux dispositions contractuelles applicables aux les parcs non-synchrone de stockage existants. WG Belgian Grid - Implementation Network Codes 7

8 Proposal for criteria: bridging the gap Approval FGC End Q Entry into force RfG 17/5/16 RfG Entry into force + 2y 17/5/18 Decision GR 17/11/18 Full RfG in application RfG publication + 3y 27/4/19 Old New Investment vacuum Old Old* (via 4.2 RfG) New WG Belgian Grid - Implementation Network Codes 8

9 Draft proposal criteria new vs. Existing: 2 criteria to be fulfilled on time, but regulator takes the final decision: Owner of the production unit, consumption installation, HVDC system, PPM unit Or DSO or CDSO 1 concluded a final and binding contract for the purchase of the main generating plant 2 and, notified the conclusion of the contract to the relevant system operator and to the relevant transmission system operator [1+2] before the entry into force of the relevant grid code The relevant regulator decides if this production unit, installation or system if considered as new WG Belgian Grid - Implementation Network Codes 9

10 Draft proposal criteria new vs. Existing: 2 criteria to be fulfilled on time, but regulator takes the final decision: Owner of the production unit, consumption installation, HVDC system, PPM unit Or DSO or CDSO 1 concluded a final and binding contract for the purchase of the main generating plant «Main generating plant». For example: Main production component Main consumption component HVDC equipment WG Belgian Grid - Implementation Network Codes 10

11 Draft proposal criteria new vs. Existing: 2 criteria to be fulfilled on time, but regulator takes the final decision: Owner of the production unit, consumption installation, HVDC system, PPM unit Or DSO or CDSO 1 concluded a final and binding contract for the purchase of the main generating plant 2 and, notified the conclusion of the contract to the relevant system operator and to the relevant transmission system operator «Notification» including for example: Administrative details: contracted parties, signature date, entry into force date Specifications about the main component of production, consumption, HVDC system, etc. that will be constructed/assembled/bought WG Belgian Grid - Implementation Network Codes 11

12 Draft proposal criteria new vs. Existing: 2 criteria to be fulfilled on time, but regulator takes the final decision: Owner of the production unit, consumption installation, HVDC system, PPM unit Or DSO or CDSO 1 concluded a final and binding contract for the purchase of the main generating plant 2 and, notified the conclusion of the contract to the relevant system operator and to the relevant transmission system operator [1+2] before the entry into force of the relevant grid code End Q Approval FGC Entry into force regional grid codes to be determined 28 Sept 2019 Full application HVDC Today 1/1/ April 2019 Full application RfG 7 Sept 2019 Full application DCC WG Belgian Grid - Implementation Network Codes 12

13 Draft proposal criteria new vs. Existing: 2 criteria to be fulfilled on time, but regulator takes the final decision: Owner of the production unit, consumption installation, HVDC system, PPM unit Or DSO or CDSO 1 concluded a final and binding contract for the purchase of the main generating plant 2 and, notified the conclusion of the contract to the relevant system operator and to the relevant transmission system operator [1+2] before the entry into force of the relevant grid code The relevant regulator decides if this production unit, installation or system if considered as new Regulators determine, based on individual request, whether installation can be considered as existing. WG Belgian Grid - Implementation Network Codes 13

14 Draft proposal criteria new vs. Existing: Additional comments: Interpretation specific circumstances in Art. 4.2 all RfG, DCC and HVDC installations, units and systems, for which the owner has not yet (full set of) requirements until EIF grid codes (both federal and regional). The proposal is without prejudice to art 4.2 a) and first two paragraphs of b) Storage: kapstok already provided in FGC: Reste inchangé : «Pour les parcs non-synchrones de stockage, les dispositions du présent arrêté entrent en vigueur le, à l exception des dispositions du Titre III, lesquelles entrent en vigueur à la date déterminée par la commission pour les unités de production d électricité en vertu du présent 3. Le Titre III ne porte pas préjudice aux dispositions contractuelles applicables aux les parcs non-synchrone de stockage existants.» WG Belgian Grid - Implementation Network Codes 14