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
38 |
ENTSOG Annual Report 2013
