# Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (Text with EEA relevance), Article 39: Principles of cost-benefit analysis

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

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.
2. A cost-benefit analysis shall be in line with the following principles:
(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:
(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, 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:
(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, 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:
(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 power-generating 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/2016/631/article/39 (the official version)
Page: https://openlegislation.uk/eu-regulation-2016-631/article-39
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.