Commission Regulation (EU) 2016/1447Show full title

TITLE I GENERAL PROVISIONS

Article 1 Subject matter

This Regulation establishes a network code which lays down the requirements for grid connections of high-voltage direct current (HVDC) systems and DC-connected power park modules. It, therefore, helps to ensure fair conditions of competition in the internal electricity market, to ensure system security and the integration of renewable electricity sources, and to facilitate Union-wide trade in electricity.

This regulation also lays down the obligations for ensuring that system operators make appropriate use of HVDC systems and DC-connected power park modules capabilities in a transparent and non-discriminatory manner to provide a level playing field throughout the Union.

Article 2 Definitions

For the purposes of this Regulation, the definitions in Article 2 of Regulation (EC) No 714/2009, Article 2 of Commission Regulation (EU) 2015/1222(1) Article 2 of Commission Regulation (EU) No 543/2013(2), Article 2 of Commission Regulation (EU) 2016/631(3), Article 2 of Commission Regulation (EU) 2016/1388(4) and Article 2 of Directive 2009/72/EC shall apply. In addition, the following definitions shall apply:

(1)

‘HVDC system’ means an electrical power system which transfers energy in the form of high-voltage direct current between two or more alternating current (AC) buses and comprises at least two HVDC converter stations with DC transmission lines or cables between the HVDC converter stations;

(2)

‘DC-connected power park module’ means a power park module that is connected via one or more HVDC interface points to one or more HVDC systems;

(3)

‘embedded HVDC system’ means an HVDC system connected within a control area that is not installed for the purpose of connecting a DC-connected power park module at the time of installation, nor installed for the purpose of connecting a demand facility;

(4)

‘HVDC converter station’ means part of an HVDC system which consists of one or more HVDC converter units installed in a single location together with buildings, reactors, filters, reactive power devices, control, monitoring, protective, measuring and auxiliary equipment;

(5)

‘HVDC interface point’ means a point at which HVDC equipment is connected to an AC network, at which technical specifications affecting the performance of the equipment can be prescribed;

(6)

‘DC-connected power park module owner’ means a natural or legal entity owning a DC-connected power park module;

(7)

‘maximum HVDC active power transmission capacity’ (P_max) means the maximum continuous active power which an HVDC system can exchange with the network at each connection point as specified in the connection agreement or as agreed between the relevant system operator and the HVDC system owner;

(8)

‘minimum HVDC active power transmission capacity’ (P_min) means the minimum continuous active power which an HVDC system can exchange with the network at each connection point as specified in the connection agreement or as agreed between the relevant system operator and the HVDC system owner;

(9)

‘HVDC system maximum current’ means the highest phase current, associated with an operating point inside the U-Q/P_max-profile of the HVDC converter station at maximum HVDC active power transmission capacity;

(10)

‘HVDC converter unit’ means a unit comprising one or more converter bridges, together with one or more converter transformers, reactors, converter unit control equipment, essential protective and switching devices and auxiliaries, if any, used for the conversion.

Article 3 Scope of application

1. The requirements of this Regulation shall apply to:

(a) HVDC systems connecting synchronous areas or control areas, including back-to-back schemes;

(b) HVDC systems connecting power park modules to a transmission network or a distribution network, pursuant to paragraph 2;

(c) embedded HVDC systems within one control area and connected to the transmission network; and

(d) embedded HVDC systems within one control area and connected to the distribution network when a cross-border impact is demonstrated by the relevant transmission system operator (TSO). The relevant TSO shall consider the long-term development of the network in this assessment.

2. Relevant system operators, in coordination with relevant TSOs, shall propose to competent regulatory authorities the application of this Regulation for DC-connected power park modules with a single connection point to a transmission network or distribution network which is not part of a synchronous area for approval in accordance with Article 5. All other power park modules which are AC-collected but are DC-connected to a synchronous area are considered DC-connected power park modules and fall within the scope of this Regulation.

3. Articles 55 to 59, 69 to 74 and 84 shall not apply to HVDC systems within one control area referred to in points (c) and (d) of paragraph 1 where:

(a) the HVDC system has at least one HVDC converter station owned by the relevant TSO;

(b) the HVDC system is owned by an entity which exercises control over the relevant TSO;

(c) the HVDC system is owned by an entity directly or indirectly controlled by an entity which also exercises control over the relevant TSO.

4. The connection requirements for HVDC systems provided for in Title II shall apply at the AC connection points of such systems, except the requirements provided for in Article 29(4) and (5) and Article 31(5), which can apply at other connection points, and Article 19(1) which may apply at the terminals of the HVDC converter station.

5. The connection requirements for DC-connected power park modules and remote-end HVDC converter stations provided for in Title III shall apply at the HVDC interface point of such systems, except the requirements provided for in Article 39(1)(a) and Article 47(2), which apply at the connection point in the synchronous area to which frequency response is being provided.

6. The relevant system operator shall refuse to allow the connection of a new HVDC system or DC-connected power park module which does not comply with the requirements set out in this Regulation and which is not covered by a derogation granted by the regulatory authority, or other authority where applicable in a Member State pursuant to Title VII. The relevant system operator shall communicate such refusal, by means of a reasoned statement in writing, to the HVDC system owner or DC-connected power park module owner and, unless specified otherwise by the regulatory authority, to the regulatory authority.

7. This Regulation shall not apply to:

(a) HVDC systems whose connection point is below 110 kV unless a cross-border impact is demonstrated by the relevant TSO. The relevant TSO shall consider the long-term development of the network in this assessment;

(b) HVDC systems or DC-connected power park modules connected to the transmission system and distribution systems or to parts of the transmission system, or distribution systems, of islands of Member States of which the systems are not operated synchronously with either the Continental Europe, Great Britain, Nordic, Ireland and Northern Ireland or Baltic synchronous area.

Article 4 Application to existing HVDC systems and DC-connected power park modules

1. Except for Articles 26, 31, 33 and 50, existing HVDC systems and existing DC-connected power park modules are not subject to the requirements of this Regulation, unless:

(a) the HVDC system or DC-connected power park module has been modified to such an extent that its connection agreement must be substantially revised in accordance with the following procedure:

(i)

the HVDC system or DC-connected power park module owners who intend to undertake the modernisation of a plant or replacement of equipment impacting the technical capabilities of the HVDC system or DC-connected power park module shall notify their plans to the relevant system operator in advance;

(ii)

if the relevant system operator considers that the extent of the modernisation or replacement of equipment is such that a new connection agreement is required, the system operator shall notify the relevant regulatory authority or, where applicable, the Member State; and

(iii)

the relevant regulatory authority or, where applicable, the Member State shall decide if the existing connection agreement needs to be revised or a new connection agreement is required and which requirements of this Regulation shall apply; or

(b) a regulatory authority or, where applicable, a Member State decides to make an existing HVDC system or existing DC-connected power park module subject to all or some of the requirements of this Regulation, following a proposal from the relevant TSO in accordance with paragraphs 3, 4 and 5.

2. For the purposes of this Regulation, an HVDC system or DC-connected power park 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 HVDC system owner or DC-connected power park module owner has concluded a final and binding contract for the purchase of the main generating plant or HVDC equipment by two years after the entry into force of the Regulation. The HVDC system owner or DC-connected power park module 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 HVDC system owner or DC-connected power park module 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 or HVDC equipment to be constructed, assembled or purchased.

A Member State may provide that in specified circumstances the regulatory authority may determine whether the HVDC system or DC-connected power park module is to be considered an existing or new HVDC system or DC-connected power park module.

3. Following a public consultation in accordance to Article 8 and in order to address significant factual changes in circumstances, such as the evolution of system requirements including penetration of renewable energy sources, smart grids, distributed generation or demand response, the relevant TSO may propose to the regulatory authority concerned, or where applicable, to the Member State to extend the application of this Regulation to existing HVDC systems and/or DC-connected power park modules.

For that purpose a sound and transparent quantitative cost-benefit analysis shall be carried out, in accordance with Articles 65 and 66. The analysis shall indicate:

(a) the costs, in regard to existing HVDC systems and DC-connected power park modules, of requiring compliance with this Regulation;

(b) the socioeconomic benefit resulting from applying the requirements set out in this Regulation; and

(c) the potential of alternative measures to achieve the required performance.

4. Before carrying out the quantitative cost-benefit analysis referred to in paragraph 3, the relevant TSO shall:

(a) carry out a preliminary qualitative comparison of costs and benefits;

(b) obtain approval from the relevant regulatory authority or, where applicable, the Member State.

5. The relevant regulatory authority or, where applicable, the Member State shall decide on the extension of the applicability of this Regulation to existing HVDC systems or DC-connected power park modules within six months of receipt of the report and the recommendation of the relevant TSO in accordance with paragraph 4 of Article 65. The decision of the regulatory authority or, where applicable, the Member State shall be published.

6. The relevant TSO shall take account of the legitimate expectations of HVDC system owners and DC-connected power park modules owners as part of the assessment of the application of this Regulation to existing HVDC systems or DC-connected power park modules.

7. The relevant TSO may assess the application of some or all of the provisions of this Regulation to existing HVDC systems or DC-connected power park modules every three years in accordance with the criteria and process set out in paragraphs 3 to 5.

Article 5 Regulatory aspects

1. Requirements of general application to be established by relevant system operators or TSOs under this Regulation shall be subject to approval by the entity designated by the Member State and be published. The designated entity shall be the regulatory authority unless otherwise provided by the Member State.

2. For site specific requirements to be established by relevant system operators or TSOs under this Regulation, Member States may require approval by a designated entity.

3. When applying this Regulation, Member States, competent entities and system operators shall:

(a) apply the principles of proportionality and non-discrimination;

(b) ensure transparency;

(c) apply the principle of optimisation between the highest overall efficiency and lowest total costs for all parties involved;

(d) respect the responsibility assigned to the relevant TSO in order to ensure system security, including as required by national legislation;

(e) consult with relevant DSOs and take account of potential impacts on their system;

(f) take into consideration agreed European standards and technical specifications.

4. 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.

5. Where this Regulation requires the relevant system operator, relevant TSO, HVDC system owner, DC-connected power park module owner and/or the distribution system operator to seek agreement, they shall endeavour to do so within six months after a first proposal has been submitted by one party to the other parties. If no agreement has been found within this timeframe, each party may request the relevant regulatory authority to issue a decision within six months.

6. Competent entities shall take decisions on proposals for requirements or methodologies within six months following the receipt of such proposals.

7. If the relevant system operator or TSO deems an amendment to requirements or methodologies as provided for and approved under paragraph 1 and 2 to be necessary, the requirements provided for in paragraphs 3 to 8 shall apply to the proposed amendment. System operators and TSOs proposing an amendment shall take into account the legitimate expectations, if any, of HVDC system owners, DC-connected power park module owners, equipment manufacturers and other stakeholders based on the initially specified or agreed requirements or methodologies.

8. Any party having a complaint against a relevant system operator or TSO in relation to that relevant system operator's or TSO's obligations under this Regulation may refer the complaint to the regulatory authority which, acting as dispute settlement authority, shall issue a decision within two months after receipt of the complaint. That period may be extended by two months where additional information is sought by the regulatory authority. That extended period may be further extended with the agreement of the complainant. The regulatory authority's decision shall have binding effect unless and until overruled on appeal.

9. Where the requirements under this Regulation are to be established by a relevant system operator that is not a TSO, Member States may provide that instead the TSO be responsible for establishing the relevant requirements.

Article 6 Multiple TSOs

1. Where more than one TSO exists in a Member State, this Regulation shall apply to all those TSOs.

2. Member States may, under the national regulatory regime, provide that the responsibility of a TSO to comply with one or some or all obligations under this Regulation is assigned to one or more specific TSOs.

Article 7 Recovery of costs

1. The costs borne by system operators subject to network tariff regulation and stemming from the obligations laid down in this Regulation shall be assessed by the relevant regulatory authorities. Costs assessed as reasonable, efficient and proportionate shall be recovered through network tariffs or other appropriate mechanisms.

2. If requested by the relevant regulatory authorities, system operators referred to in paragraph 1 shall, within three months of the request, provide the information necessary to facilitate assessment of the costs incurred.

Article 8 Public consultation

1. Relevant system operators and relevant TSOs shall carry out consultation with stakeholders, including the competent authorities of each Member State, on proposals to extend the applicability of this Regulation to existing HVDC systems and DC-connected power park modules, in accordance with Article 4(3), on the report prepared in accordance with Article 65(3), and the cost-benefit analysis undertaken in accordance with Article 80(2). The consultation shall last at least for a period of one month.

2. The relevant system operators or relevant TSOs shall duly take into account the views of the stakeholders resulting from the consultations prior to the submission of the draft proposal or the report or cost benefit analysis for approval by the regulatory authority or, if applicable, the Member State. In all cases, a sound justification for including or not the views of the stakeholders shall be provided and published in a timely manner before, or simultaneously with, the publication of the proposal.

Article 9 Stakeholder involvement

The Agency for the Cooperation of Energy Regulators (the Agency), in close cooperation with the European Network of Transmission System Operators for Electricity (ENTSO for Electricity), shall organise stakeholder involvement regarding the requirements for grid connection of HVDC systems and DC-connected power park modules, and other aspects of the implementation of this Regulation. This shall include regular meetings with stakeholders to identify problems and propose improvements notably related to the requirements for grid connection of HVDC systems and DC-connected power park modules.

Article 10 Confidentiality obligations

1. Any confidential information received, exchanged or transmitted pursuant to this Regulation shall be subject to the conditions of professional secrecy laid down in paragraphs 2, 3 and 4.

2. The obligation of professional secrecy shall apply to any persons, regulatory authorities or entities subject to the provisions of this Regulation.

3. Confidential information received by the persons, regulatory authorities or entities referred to in paragraph 2 in the course of their duties may not be divulged to any other person or authority, without prejudice to cases covered by national law, the other provisions of this Regulation or other relevant Union law.

4. Without prejudice to cases covered by national or Union law, regulatory authorities, entities or persons who receive confidential information pursuant to this Regulation may use it only for the purpose of carrying out their duties under this Regulation.

(1)

Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).

(2)

Commission Regulation (EU) No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council (OJ L 163, 15.6.2013, p. 1).

(3)

Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (OJ L 112, 27.4.2016, p. 1).

(4)

Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a Network Code on Demand Connection (OJ L 223, 18.8.2016, p. 10).