{
  "url": "https://openlegislation.uk/eu-regulation-2016-631/article-39",
  "json_url": "https://openlegislation.uk/eu-regulation-2016-631/article-39.json",
  "legislation": "eur/2016/631",
  "legislation_title": "Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2016-631",
  "path": "article/39",
  "kind": "article",
  "number": "39",
  "heading": "Principles of cost-benefit analysis",
  "text": "1. Power-generating facility owners and DSOs including CDSOs shall assist and contribute to the cost-benefit analysis undertaken according to Articles 38 and 63 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 power-generating facility owner, or prospective owner, assessing a potential derogation pursuant to Article 62, 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 power-generating facility owner, or the prospective owner, within three months of receiving a request, unless agreed otherwise by the power-generating facility owner or the prospective owner.\n2. A cost-benefit analysis shall be in line with the following principles:\n(a) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall base its cost-benefit analysis on one or more of the following calculating principles:\n(i)the net present value;\n(ii)the return on investment;\n(iii)the rate of return;\n(iv)the time needed to break even;\n(b) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall also quantify socioeconomic benefits in terms of improvement in security of supply and shall include at least:\n(i)the associated reduction in probability of loss of supply over the lifetime of the modification;\n(ii)the probable extent and duration of such loss of supply;\n(iii)the societal cost per hour of such loss of supply;\n(c) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall quantify the benefits to electricity markets, cross-border trade and integration of renewable energies, including at least:\n(i)the active power frequency response;\n(ii)the balancing reserves;\n(iii)the reactive power provision;\n(iv)congestion management;\n(v)defence measures;\n(d) the relevant TSO shall quantify the costs of applying the necessary rules to existing power-generating modules, including at least:\n(i)the direct costs incurred in implementing a requirement;\n(ii)the costs associated with attributable loss of opportunity;\n(iii)the costs associated with resulting changes in maintenance and operation.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Art. 39(2)(c) substituted (E.W.S.) (31.12.2020) by The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 1 para. 23"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2016/631/article/39",
    "retrieved_at": "2026-11-01T14:45:52.872772+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}