ENTSOG Annual Report 2013

Replacing coal by gas is the fastest and cheapest way to meet CO2 reduction targets.

BALANCING NETWORK CODE (BAL NC)

At the Madrid Forum XXIII of 17–18 April 2013, ENTSOG was requested to study the possibilities for early implementation of BAL NC. Since the pro­ visions of BAL NC do not necessitate cross-border cooperation, ENTSOG opted to provide an initial assessment of the implementation challenges for TSOs on a national basis. All TSOs provided estimations of their expected implementation dates as well as indicating how challenging various chapters of BAL NC will be. A report of these findings was presented to ACER on 30 November 2013. The main conclusions of the report are the following: \\ Half of the European TSOs expect to fully implement BAL NC either by 1 October 2015 or by 1 October 2016. The remaining half of the Mem- ber States expects to postpone the full implementation of BAL NC until 1 October 2019 by applying for a set of interim measures (subject to NRA approval). This makes it possible to establish a balancing platform or apply tolerances that will stimulate the short-term market. \\ The introduction of short-term standardised products (STSPs) is foreseen by many TSOs to be a significant challenge. This is because STSPs are not yet developed in some countries and in some cases network users do not have access to trading platforms. \\ The provisions on within-day obligations (WDOs) will not incur signifi- cant changes for the majority of TSOs. Currently, only a few countries use WDOs in their daily balancing regimes. \\ The changes regarding information provisions are expected to necessi- tate considerable modifications in national IT systems as well as signifi- cant national cooperation between TSOs, DSOs, shippers and NRAs.

\\ Long-term flexibility contracts with infrastructure providers or shippers providing balancing gas were only offered by one TSO.

The report could potentially be updated in late 2014 to reflect the implemen- tation progress of BAL NC across Europe.

Image courtesy of Gas Connect Austria

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ENTSOG Annual Report 2013