Article 32 Procurement rules

United Kingdom

All TSOs of the LFC block shall regularly and at least once a year review and define the reserve capacity requirements for the LFC block or scheduling areas of the LFC block pursuant to dimensioning rules as referred in Articles 127, 157 and 160 of Regulation (EU) 2017/1485. Each TSO shall perform an analysis on optimal provision of reserve capacity aiming at minimisation of costs associated with the provision of reserve capacity. This analysis shall take into account the following options for the provision of reserve capacity:

(a)

procurement of balancing capacity within control area F1..., when applicable;

(b)

sharing of reserves, when applicable;

(c)

the volume of non-contracted balancing energy bids which are expected to be available F2... within their control area F3....

Each TSO procuring balancing capacity shall define the rules for the procurement of balancing capacity in the proposal for the terms and conditions related to balancing service providers developed pursuant to Article 18. The rules for the procurement of balancing capacity shall comply with the following principles:

(a)

the procurement method shall be market-based for at least the frequency restoration reserves and the replacement reserves;

(b)

the procurement process shall be performed on a short-term basis to the extent possible and where economically efficient;

(c)

the contracted volume may be divided into several contracting periods.

The procurement of upward and downward balancing capacity for at least the frequency restoration reserves and the replacement reserves shall be carried out separately. Each TSO may submit a proposal to the F4regulatory authority requesting the exemption to this requirement. The proposal for exemption shall include:

(a)

specification of the time period during which the exemption would apply;

(b)

specification of the volume of balancing capacity for which the exemption would apply;

(c)

analysis of the impact of such an exemption on the participation of F5demand facility owners, third parties and owners of power generating facilities from renewable energy sources as well as owners of energy storage units;

(d)

justification for the exemption demonstrating that such an exemption would lead to higher economic efficiency.

Annotations

Textual amendments

F1: Words in Art. 32(1)(a) omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 23(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
F2: Word in Art. 32(1)(c) omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 23(2)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F3: Words in Art. 32(1)(c) omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 23(2)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F4: Words in Art. 32(3) substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 23(3)(a); 2020 c. 1, Sch. 5 para. 1(1)
F5: Words in Art. 32(3)(c) substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 23(3)(b); 2020 c. 1, Sch. 5 para. 1(1)