Modalities and legal framework

Modalities and legal framework

In addition to broader regulations from the EnWG and StromNZV, a stringent legal framework is now being established at the European level. The overarching EB GL and SO GL already form a detailed set of rules. Numerous methods have been developed, particularly from the EB GL, which are to be uniformly applied by all European TSOs, defining products and processes and forming the framework for operating the MARI and PICASSO platforms. Finally, there are still requirements for the Terms and Conditions for BSPs (T&Cs for BSPs) and balance responsible parties (balancing group contract and reBAP determination) that need to be addressed and developed at the national level. If TSOs procure balancing services across borders, they must do so with harmonized products and processes that, according to Article 33 of the EB GL, must be regionally consulted, requested, and approved by the relevant regulatory authorities of the participating countries.

The EB GL lays down principles for the European market for balancing energy. For instance, the balancing energy price may not be set in a contract for the provision of balancing services; platforms for exchange must be established, balancing energy is to be remunerated based on a single pricing method, and the TSOs are to ensure financial neutrality in balancing services activities.

The following methods developed and approved from the EB GL provide more detailed guidance on its stipulations:

Implementation Framework for aFRR and mFRR

This framework defines the standard products for balancing energy and sets the rules and processes for the operation of the platforms, including disclosure obligations and implementation deadlines.

Pricing for Balancing Energy

This pricing method regulates uniform principles for the remuneration of aFRR and mFRR energy. The details of the remuneration are regulated in the national modalities.

Purposes of Activating Balancing Energy

This method defines the deployment purposes for the standard products of balancing energy.

Settlement of Intended Energy Exchange

The rules for inter-TSO settlement of exchanged balancing energy are embedded in this method.

Standard Products for Balancing Services

If two or more TSOs procure aFRR or mFRR services in a joint tender, this method is mandatory. In addition to listing the permissible standard products, it defines other product properties such as the minimum bid size.

Method for Harmonizing the Main Components of the Imbalance Price

This method defines the main components that may form the imbalance price and further principles of balancing group accounting.

Modalities for Balance Responsible Parties

These modalities consist of the standard balancing group contract and the calculation rules for the imbalance. All information on this can be found on www.netztransparenz.de.

Terms and Conditions for BSPs (T&C for BSPs)

Each TSO must develop and publish these (national) T&C for BSPs in compliance with all EB GL requirements and methods. They detail the rules of the balancing market, close regulatory gaps, and define the national implementation scopes of the European regulation.

Current T&C for BSPs

Here you will find the current T&C for BSPs in accordance with Art. 18(5) EB-VO. They contain all modalities that have already been approved and applied for but not yet approved. Please note the information on the status of approval and application of the modalities.

Reports according to EB GL


TSO report on system balancing and balancing capacity markets

As part of the EB GL in accordance with Article 60, the German transmission system operators are obliged to publish a TSO report on system balancing at least every two years. The report provides an insight into the balancing market and the balancing concepts.

ENTSO-E report on the integration of the balancing capacity markets

In addition, the European report on the integration of the balancing capacity markets must be published by ENTSO-E as part of the EB GL in accordance with Article 59. This has also been published every two years since mid-2020. Part of the EU report is the summary of the TSOs' report on system balancing in accordance with Article 60.


Laws

Energy Industry Act (EnWG) Act on the supply of electricity and gas:

https://www.bmwk.de/Redaktion/DE/Gesetze/Energie/EnWG.html

Electricity Grid Access Ordinance (StromNZV) Ordinance on access to electricity supply grids:

https://www.bmwk.de/Redaktion/DE/Gesetze/Energie/StromNZV.html

Electricity Balancing Guideline (EB GL):

https://www.entsoe.eu/network_codes/eb/

EB GL Implementation Monitoring by ACER: 

https://www.acer.europa.eu/electricity/implementation-monitoring/eb

Current EB GL proceedings of Ruling Section 6:

https://www.bundesnetzagentur.de/DE/Beschlusskammern/BK06/BK6_84_Sys_Dienst/841_eb_verordnung/eb_node.html