Commission Regulation (EU) 2016/631Show full title

Article 38 Identification of costs and benefits of application of requirements to existing power-generating modules

1. Prior to the application of any requirement set out in this Regulation to existing power-generating modules in accordance with Article 4(3), the relevant TSO shall undertake a qualitative comparison of costs and benefits related to the requirement under consideration. This comparison shall take into account available network-based or market-based alternatives. The relevant TSO may only proceed to undertake a quantitative cost-benefit analysis in accordance with paragraphs 2 to 5, if the qualitative comparison indicates that the likely benefits exceed the likely costs. If, however, the cost is deemed high or the benefit is deemed low, then the relevant TSO shall not proceed further.

2. Following a preparatory stage undertaken in accordance with paragraph 1, the relevant TSO shall carry out a quantitative cost-benefit analysis of any requirement under consideration for application to existing power-generating modules that have demonstrated potential benefits as a result of the preparatory stage according to paragraph 1.

3. Within three months of concluding the cost-benefit analysis, the relevant TSO shall summarise the findings in a report which shall:

(a) include the cost-benefit analysis and a recommendation on how to proceed;

(b) include a proposal for a transitional period for applying the requirement to existing power-generating modules. That transitional period shall not be more than two years from the date of the decision of the regulatory authority or where applicable the Member State on the requirement's applicability;

(c) be subject to public consultation in accordance with Article 10.

4. No later than six months after the end of the public consultation, the relevant TSO shall prepare a report explaining the outcome of the consultation and making a proposal on the applicability of the requirement under consideration to existing power-generating modules. The report and proposal shall be notified to the regulatory authority or, where applicable, the Member State, and the power-generating facility owner or, where applicable, third party shall be informed on its content.

5. The proposal made by the relevant TSO to the regulatory authority or, where applicable, the Member State pursuant to paragraph 4 shall include the following:

(a) an operational notification procedure for demonstrating the implementation of the requirements by the existing power-generating facility owner;

(b) a transitional period for implementing the requirements which shall take into account the category of the power-generating module as specified in Article 5(2) and Article 23(3) and any underlying obstacles to the efficient implementation of the equipment modification/refitting.