# Commission Regulation (EU) 2016/1447 of 26 August 2016 establishing a network code on requirements for grid connection of high voltage direct current systems and direct current-connected power park modules (Text with EEA relevance), Article 66: Principles of cost-benefit analysis

Extent: E+W+S+N.I.

1. HVDC system owners, DC-connected power park module owners and DSOs, including CDSOs, shall assist and contribute to the cost-benefit analysis undertaken according to Article 65 and 80 and provide the necessary data as requested by the relevant system operator or relevant TSO within three months of receiving a request, unless agreed otherwise by the relevant TSO. For the preparation of a cost-benefit-analysis by a HVDC system owner or DC-connected power park module owner, or their prospective owner, assessing a potential derogation pursuant to Article 79, the relevant TSO and DSO, including CDSO, shall assist and contribute to the cost-benefit analysis and provide the necessary data as requested by the HVDC system owner or DC-connected power park module owner, or their prospective owner, within three months of receiving a request, unless agreed otherwise by the HVDC system owner or DC-connected power park module owner, or their prospective owner.
2. A cost-benefit analysis shall be in line with the following principles:
(a) the relevant TSO, or HVDC system owner or DC-connected power park module owner, or their prospective owner, shall base its cost-benefit analysis on one or more of the following calculating principles:
(i)the net present value;
(ii)the return on investment;
(iii)the rate of return;
(iv)the time needed to break even.
(b) the relevant TSO, or HVDC system owner or DC-connected power park module owner, or their prospective owner, shall also quantify socioeconomic benefits in terms of improvement in security of supply and shall include at least:
(i)the associated reduction in probability of loss of supply over the lifetime of the modification;
(ii)the probable extent and duration of such loss of supply;
(iii)the societal cost per hour of such loss of supply.
(c) the relevant TSO, or HVDC system owner or DC-connected power park module owner, or their prospective owner, shall quantify the benefits to electricity markets, cross-border trade and integration of renewable energies, including at least:
(i)the active power frequency response;
(ii)the balancing reserves;
(iii)the reactive power provision;
(iv)congestion management;
(v)defence measures.
(d) the relevant TSO shall quantify the costs of applying the necessary rules to existing HVDC systems or DC-connected power park modules, including at least:
(i)the direct costs incurred in implementing a requirement;
(ii)the costs associated with attributable loss of opportunity;
(iii)the costs associated with resulting changes in maintenance and operation.

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Source: https://www.legislation.gov.uk/eur/2016/1447/article/66 (the official version)
Page: https://openlegislation.uk/eu-regulation-2016-1447/article-66
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.