Tech Talk | A network code on demand response in Europe

European TSOs and DSOs through their associations ENTSO-E and DSO Entity have prepared a joint network code on demand response.

The network code, prepared on request from the European Commission, aims to facilitate the integration of demand side flexibility into the transmission and distribution systems as a necessity for the decarbonisation of the broader power system.

In particular, the proposed network code sets out requirements in relation to demand response, energy storage, distributed generation and demand curtailment rules, including rules on aggregation, to contribute to market integration, non-discrimination, effective competition and the efficient functioning of the market.

Furthermore, it sets out obligations for ensuring that resources and service providers have access to the electricity markets in accordance with the principles regarding the operation of electricity markets and also facilitates the procurement of the relevant services by the systems operators for the operation and planning of the electricity network.

Have you read?
Smart solutions programme to increase consumer participation in flexibility
The urgency and opportunities for demand side flexibility in France

Delving into the detail, some key points of the code are that it should help to ensure fair conditions of competition in the internal electricity market, to ensure security at both power system and network level and to support the integration of renewable electricity sources, as well as to facilitate EU-wide trade in electricity.

While each of demand response, energy storage, distributed generation and demand curtailment, including aggregation, have particularities, the rules set out are to enable participation of any single or aggregated resources such as production, consumption or energy storage and that procurement is non-discriminatory and technology neutral, while having regard to those particularities.

Congestion and voltage management

When it comes to local solutions for congestion and voltage issues the proposed rule is that
each system operator should choose the most efficient and effective solution or combination of solutions in accordance with the applicable national framework, which can include grid investment, flexible connection agreements, grid tariffs, grid-technical measures, non-costly remedial actions and procurement and activation of local services, as well as redispatching or other tools.

Value stacking also is facilitated through interoperable and coordinated solutions as well as portability of products between markets in order to enable service providers to maximise the value of flexible units in their portfolio.

To provide a local service or a balancing service, a service provider will need to qualify, including undergoing product prequalification and grid qualification processes, which will include meeting certain financial and ICT requirements among other criteria.

Another aspect is data exchange between parties and by 12 months after entry into force of the regulation, ENTSO-E and DSO Entity will define and publish lists of standards based on the existing ETSI-CEN-CENELEC sets of standard so that the exchanges can be standardised.

TSO-DSO coordination

Further requirements in the proposed code are the development by the DSOs of distribution network development plans with a five to ten year perspective and including an assessment of the current and predicted local services needed for solving congestion and voltage issues, and for TSO-DSO and DSO-DSO coordination with common proposals to be developed by the system operators.

As part of this latter requirement, DSO ‘observability areas’ will be developed, which will identify the scope for which the DSO is entitled to receive information regarding structural, schedule and forecast and, where necessary, real time information about grid elements and system user installations.

DSOs also will be required to forecast grid status and identify and address congestion or voltage issues.

DSO-DSO and DSO-TSO data exchange also is specified as a requirement, with the content of real time data including at least the available information about the actual topology, the busbar voltage, active and reactive power flows and the real time measurements of the service providing group and for the ‘significant grid users’.

The proposed code has now been submitted to ACER, which has six months to review and amend the proposal in line with the framework guideline before submitting it to the European Commission for approval as a regulation.

Jonathan Spencer Jones

Specialist writer
Smart Energy International

Follow me on LinkedIn