Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) (Text with EEA relevance.)

(a) the Member State of the prospective seat of the regional coordination centres and the participating transmission system operators;

(b) the organisational, financial and operational arrangements necessary to ensure the efficient, secure and reliable operation of the interconnected transmission system;

(c) an implementation plan for the entry into operation of the regional coordination centres;

(d) the statutes and rules of procedure of the regional coordination centres;

(e) a description of cooperative processes in accordance with Article 38;

(f) a description of the arrangements concerning the liability of the regional coordination centres in accordance with Article 47;

(g) where two regional coordination centres are maintained on a rotational basis in accordance with Article 36(2), a description of the arrangements to provide clear responsibilities to those regional coordination centres and procedures on the execution of their tasks.

Article 36

Geographical scope of regional coordination centres

Article 37

Tasks of regional coordination centres

Each regional coordination centre shall carry out at least all the following tasks of regional relevance in the entire system operation region where it is established:

(a) carrying out the coordinated capacity calculation in accordance with the methodologies developed pursuant to the forward capacity allocation guideline established by Regulation (EU) 2016/1719, the capacity allocation and congestion management guideline established by Regulation (EU) 2015/1222 and the electricity balancing guideline established by Regulation (EU) 2017/2195;

(b) carrying out the coordinated security analysis in accordance with the methodologies developed pursuant to the system operation guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009;

(c) creating common grid models in accordance with the methodologies and procedures developed pursuant to the system operation guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009;

(d) supporting the consistency assessment of transmission system operators' defence plans and restoration plans in accordance with the procedure set out in the emergency and restoration network code adopted on the basis of Article 6(11) of Regulation (EC) No 714/2009;

(e) carrying out regional week ahead to at least day-ahead system adequacy forecasts and preparation of risk reducing actions in accordance with the methodology set out in Article 8 of Regulation (EU) 2019/941 and the procedures set out in the system operation guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009;

(f) carrying out regional outage planning coordination in accordance with the procedures and methodologies set out in the system operation guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009;

(g) training and certification of staff working for regional coordination centres;

(h) supporting the coordination and optimisation of regional restoration as requested by transmission system operators;

(i) carrying out post-operation and post-disturbances analysis and reporting;

(j) regional sizing of reserve capacity;

(k) facilitating the regional procurement of balancing capacity;

(l) supporting transmission system operators, at their request, in the optimisation of inter-transmission system operators settlements;

(m) carrying out tasks related to the identification of regional electricity crisis scenarios if and to the extent they are delegated to the regional coordination centres pursuant to Article 6(1) of Regulation (EU) 2019/941;

(n) carrying out tasks related to the seasonal adequacy assessments if and to the extent that they are delegated to the regional coordination centres pursuant to Article 9(2) of Regulation (EU) 2019/941;

(o) calculating the value for the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms for the purposes of issuing a recommendation pursuant to Article 26(7);

(p) carrying out tasks related to supporting transmission system operators in the identification of needs for new transmission capacity, for upgrade of existing transmission capacity or their alternatives, to be submitted to the regional groups established pursuant to Regulation (EU) No 347/2013 and included in the ten-year network development plan referred to in Article 51 of Directive (EU) 2019/944.

The tasks referred to in the first subparagraph are set out in more detail in Annex I.

Article 38

Cooperation within and between regional coordination centres

The day-to-day coordination within and between regional coordination centres shall be managed through cooperative processes among the transmission system operators of the region, including arrangements for coordination between regional coordination centres where relevant. The cooperative process shall be based on:

(a) working arrangements to address planning and operational aspects relevant to the tasks referred to in Article 37;

(b) a procedure for sharing analysis and consulting on regional coordination centres' proposals with the transmission system operators in the system operation region and relevant stakeholders and with other regional coordination centres, in an efficient and inclusive manner, in the exercise of the operational duties and tasks, in accordance with Article 40;

(c) a procedure for the adoption of coordinated actions and recommendations in accordance with Article 42.

Article 39

Working arrangements

Article 40

Consultation procedure

Article 41

Transparency

Article 42

Adoption and review of coordinated actions and recommendations

Where a transmission system operator decides not to implement a coordinated action for the reasons set out in this paragraph, it shall transparently report the detailed reasons to the regional coordination centre and the transmission system operators of the system operation region without undue delay. In such cases, the regional coordination centre shall assess the impact of that decision on the other transmission system operators of the system operation region and may propose a different set of coordinated actions subject to the procedure set out in paragraph 1.

Where a transmission system operator decides to deviate from a recommendation as referred to in paragraph 1, it shall submit a justification for its decision to regional coordination centres and to the other transmission system operators of the system operation region without undue delay.

Article 43

Management board of regional coordination centres

The management board shall be responsible for:

(a) drafting and endorsing the statutes and rules of procedure of regional coordination centres;

(b) deciding upon and implementing the organisational structure;

(c) preparing and endorsing the annual budget;

(d) developing and endorsing the cooperative processes in accordance with Article 38.

Article 44

Organisational structure

Their organisational structure shall specify:

(a) the powers, duties and responsibilities of the personnel;

(b) the relationship and reporting lines between different parts and processes of the organisation.

Article 45

Equipment and staff

Regional coordination centres shall be equipped with all human, technical, physical and financial resources necessary for fulfilling their obligations under this Regulation and carrying out their tasks independently and impartially.

Article 46

Monitoring and reporting

Regional coordination centres shall establish a process for the continuous monitoring of at least:

(a) their operational performance;

(b) the coordinated actions and recommendations issued, the extent to which the coordinated actions and recommendations have been implemented by the transmission system operators and the outcome achieved;

(c) the effectiveness and efficiency of each of the tasks for which they are responsible and, where applicable, the rotation of those tasks.

Article 47

Liability

In proposals for the establishment of regional coordination centres in accordance with Article 35, the transmission system operators in the system operation region shall include the necessary steps to cover liability related to the execution of regional coordination centres' tasks. The method employed to provide the cover shall take into account the legal status of regional coordination centres and the level of commercial insurance cover available.

Article 48

Ten-year network development plan

The Union-wide network development plan shall, in particular:

(a) build on national investment plans, taking into account regional investment plans as referred to in Article 34(1) of this Regulation, and, if appropriate, Union aspects of network planning as set out in Regulation (EU) No 347/2013; it shall be subject to a cost-benefit analysis using the methodology established as set out in Article 11 of that Regulation;

(b) regarding cross-border interconnections, also build on the reasonable needs of different system users and integrate long-term commitments from investors referred to in Articles 44 and 51 of Directive (EU) 2019/944; and

(c) identify investment gaps, in particular with respect to cross-border capacities.

In regard to point (c) of the first subparagraph, a review of barriers to the increase of cross-border capacity of the network arising from different approval procedures or practices may be annexed to the Union–wide network development plan.

Article 49

Inter-transmission system operator compensation mechanism

The first period for which compensation payments are to be made shall be determined in the guidelines referred to in Article 61.

Article 50

Provision of information

Transmission system operators shall provide in a transparent manner clear information to system users about the status and treatment of their connection requests including, where relevant, information related to flexible connection agreements. They shall provide such information within three months of the submission of the request. Where the requested connection is neither granted nor permanently rejected, transmission system operators shall update that information on a regular basis, at least quarterly.

Article 51

Certification of transmission system operators

When preparing the opinion referred to in the first subparagraph, the Commission may request ACER to provide its opinion on the regulatory authority's decision. In such a case, the two-month period referred to in the first subparagraph shall be extended by two further months.

In the absence of an opinion by the Commission within the periods referred to in the first and second subparagraphs, the Commission shall be considered not to raise objections to the regulatory authority's decision.

CHAPTER VI

DISTRIBUTION SYSTEM OPERATION

Article 52

European entity for distribution system operators

Registered members may participate in the EU DSO entity directly or be represented by a national association designated by the Member State or by a Union-level association.

Article 53

Establishment of the EU DSO entity

The draft rules of procedure of the EU DSO entity shall ensure balanced representation of all participating distribution system operators.

Article 54

Principal rules and procedures for the EU DSO entity

The statutes of the EU DSO entity adopted in accordance with Article 53 shall safeguard the following principles:

(a) participation in the work of the EU DSO entity is limited to registered members with the possibility of delegation within the membership;

(b) strategic decisions regarding the activities of the EU DSO entity as well as policy guidelines for the board of directors are adopted by the general assembly;

(c) decisions of the general assembly are adopted according with the following rules: (i) each member disposes of a number of votes proportional to the number of that member's customers; (ii) 65 % of the votes attributed to the members are cast; and (iii) the decision is adopted by a majority of 55 % of the members;

(d) decisions of the general assembly are rejected according with the following rules: (i) each member disposes of a number of votes proportional to the number of that member's customers; (ii) 35 % of the votes attributed to the members are cast; and (iii) the decision is rejected by at least 25 % of the members;

(e) the board of directors is elected by the general assembly for a mandate of a maximum of four years;

(f) the board of directors nominates the President and the three Vice-Presidents from among the members of the board;

(g) cooperation between transmission system operators and distribution system operators pursuant to Articles 56 and 57 is led by the board of directors;

(h) decisions of the board of directors are adopted by an absolute majority;

(i) on the basis of a proposal by the board of directors, the secretary general is appointed by the general assembly from among its members for a mandate of four years, renewable once;

(j) on the basis of a proposal by the board of directors, Expert Groups are appointed by the general assembly and do not exceed 30 members, with the possibility of one-third of the members coming from outside the membership of EU DSO; in addition, one ‘country’ expert group shall be established and shall consist of one representative of distribution system operators from each Member State.

Procedures adopted by the EU DSO entity shall safeguard the fair and proportionate treatment of its members and shall reflect the diverse geographical and economic structure of its membership. In particular, the procedures shall provide that:

(a) the board of directors is composed of the President of the Board and 27 members' representatives, of which: (i) nine are representatives of members with more than 1 million grid users; (ii) nine are representatives of members with more than 100 000 and less than 1 million grid users; and (iii) nine are representatives of members with less than 100 000 grid users;

(b) representatives of existing DSO associations are permitted to participate as observers at the meetings of the board of directors;

(c) the board of directors are not permitted to consist of more than three representatives of members who are based in the same Member State or in the same industrial group;

(d) each Vice-President of the Board is nominated among representatives of members in each category described in point (a);

(e) representatives of members who are based in one Member State or the same industrial group do not constitute the majority of the participants in the Expert Group;

(f) the board of directors establishes a Strategic Advisory group that provides its opinion to the board of directors and the Expert Groups and consists of representatives of the European DSO associations and representatives of those Member States which are not represented in the board of directors.

Article 55

Tasks of the EU DSO entity

The tasks of the EU DSO entity shall be the following:

(a) promoting operation and planning of distribution networks in coordination with the operation and planning of transmission networks;

(b) facilitating the integration of renewable energy resources, distributed generation and other resources embedded in the distribution network such as energy storage;

(c) facilitating demand side flexibility and response and distribution grid users' access to markets;

(d) contributing to the digitalisation of distribution systems including deployment of smart grids and intelligent metering systems;

(e) supporting the development of data management, cyber security and data protection in cooperation with relevant authorities and regulated entities;

(f) participating in the development of network codes which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission networks and distribution networks pursuant to Article 59.

In addition the EU DSO entity shall:

(a) cooperate with the ENTSO for Electricity on the monitoring of implementation of the network codes and guidelines adopted pursuant to this Regulation which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission networks and distribution networks;

(b) cooperate with the ENTSO for Electricity and adopt best practices on the coordinated operation and planning of transmission and distribution systems including issues such as exchange of data between operators and coordination of distributed energy resources;

(c) work on identifying best practices on the areas identified in paragraph 1 and for the introduction of energy efficiency improvements in the distribution network;

(d) adopt an annual work programme and an annual report;

(e) operate in accordance with competition law and ensure neutrality.

Article 56

Consultations in the network code development process

Article 57

Cooperation between distribution system operators and transmission system operators

CHAPTER VII

NETWORK CODES AND GUIDELINES

Article 58

Adoption of network codes and guidelines

The network codes and guidelines shall:

(a) ensure that they provide the minimum degree of harmonisation required to achieve the aims of this Regulation;

(b) take into account regional specificities, where appropriate;

(c) not go beyond what is necessary for the purposes of point (a); and

(d) be without prejudice to the Member States' right to establish national network codes which do not affect cross-zonal trade.

Article 59

Establishment of network codes

The Commission is empowered to adopt implementing acts in order to ensure uniform conditions for the implementation of this Regulation by establishing network codes in the following areas:

(a) network security and reliability rules including rules for technical transmission reserve capacity for operational network security as well as interoperability rules implementing Articles 34 to 47 and Article 57 of this Regulation and Article 40 of Directive (EU) 2019/944, including rules on system states, remedial actions and operational security limits, voltage control and reactive power management, short-circuit current management, power flow management, contingency analysis and handling, protection equipment and schemes, data exchange, compliance, training, operational planning and security analysis, regional operational security coordination, outage coordination, availability plans of relevant assets, adequacy analysis, ancillary services, scheduling, and operational planning data environments;

(b) capacity-allocation and congestion- management rules pursuant to Articles 7 to 10, 13 to 17, 19 and 35 to 37 of this Regulation and Article 6 of Directive (EU) 2019/944, including rules on day-ahead, intraday and forward capacity calculation methodologies and processes, grid models, bidding zone configuration, redispatching and countertrading, trading algorithms, single day-ahead and intraday coupling, different governance options, the firmness of allocated cross-zonal capacity, congestion income distribution, the details and specific features of the tools referred to in Article 9(3) of this Regulation by reference to the elements specified in paragraphs (4) and (5) thereof, the allocation and facilitation of trading of financial long-term transmission rights by the single allocation platform as well as the frequency, maturity and specific nature of such long-term transmission rights, cross-zonal transmission risk hedging, nomination procedures, and capacity allocation and congestion management cost recovery, and methodology for compensating offshore renewable electricity plant operators for capacity reductions;

(c) rules implementing Articles 5, 6 and 17 in relation to trading related to technical and operational provision of network access services and system balancing, including rules on network-related reserve power, including functions and responsibilities, platforms for the exchange of balancing energy, gate closure times, requirements for standard and specific balancing products, procurement of balancing services, allocation of cross-zonal capacity for the exchange of balancing services or sharing of reserves, settlement of balancing energy, settlement of exchanges of energy between system operators, imbalance settlement and settlement of balancing capacity, load frequency control, frequency quality defining and target parameters, frequency containment reserves, frequency restoration reserves, replacement reserves, exchange and sharing of reserves, cross-border activation processes of reserves, time-control processes and transparency of information;

(d) rules implementing Articles 36, 40 and 54 of Directive (EU) 2019/944 in relation to non-discriminatory, transparent provision of non-frequency ancillary services,, including rules on steady state voltage control, inertia, fast reactive current injection, inertia for grid stability, short circuit current, black-start capability and island operation capability;

(e) rules implementing Article 57 of this Regulation and Articles 17, 31, 32, 36, 40 and 54 of Directive (EU) 2019/944 in relation to demand response, including rules on aggregation, energy storage, and demand curtailment rules.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 67(2).

The Commission is empowered to adopt delegated acts in accordance with Article 68 supplementing this Regulation with regard to the establishment of network codes in the following areas:

(a) network connection rules including rules on the connection of transmission-connected demand facilities, transmission-connected distribution facilities and distribution systems, connection of demand units used to provide demand response, requirements for grid connection of generators and other system users, requirements for high-voltage direct current grid connection, requirements for direct current-connected power park modules and remote-end high-voltage direct current converter stations, and operational notification procedures for grid connection;

(b) data exchange, settlement and transparency rules, including in particular rules on transfer capacities for relevant time horizons, estimates and actual values on the allocation and use of transfer capacities, forecast and actual demand of facilities and aggregation thereof including unavailability of facilities, forecast and actual generation of generation units and aggregation thereof including unavailability of units, availability and use of networks, congestion management measures and balancing market data. Rules should include ways in which the information is published, the timing of publication, the entities responsible for handling;

(c) third-party access rules;

(d) operational emergency and restauration procedures in an emergency including system defence plans, restoration plans, market interactions, information exchange and communication and tools and facilities;

(e) sector-specific rules for cyber security aspects of cross-border electricity flows, including rules on common minimum requirements, planning, monitoring, reporting and crisis management.

If the subject matter of the network code is directly related to the operation of the distribution system and not primarily relevant to the transmission system, the Commission may require the EU DSO entity, in cooperation with the ENTSO for Electricity, to convene a drafting committee and submit a proposal for a network code to ACER.

Article 60

Amendments of network codes

Article 61

Guidelines

The Commission is empowered to adopt delegated acts in accordance with Article 68 supplementing this Regulation by setting out guidelines relating to the inter-transmission system operator compensation mechanism. Those guidelines shall specify, in accordance with the principles set out in Articles 18 and 49:

(a) details of the procedure for determining which transmission system operators are liable to pay compensation for cross-border flows including as regards the split between the operators of national transmission systems from which cross-border flows originate and the systems where those flows end, in accordance with Article 49(2);

(b) details of the payment procedure to be followed, including the determination of the first period for which compensation is to be paid, in accordance with the second subparagraph of Article 49(3);

(c) details of methodologies for determining the cross-border flows hosted for which compensation is to be paid under Article 49, in terms of both quantity and type of flows, and the designation of the magnitudes of such flows as originating or ending in transmission systems of individual Member States, in accordance with Article 49(5);

(d) details of the methodology for determining the costs and benefits incurred as a result of hosting cross-border flows, in accordance with Article 49(6);

(e) details of the treatment of electricity flows originating or ending in countries outside the European Economic Area in the context of the inter-transmission system operator compensation mechanism; and

(f) arrangements for the participation of national systems which are interconnected through direct current lines, in accordance with Article 49.

Where appropriate, the Commission may adopt implementing acts setting out guidelines providing the minimum degree of harmonisation required to achieve the aim of this Regulation. Those guidelines may specify:

(a) details of rules for the trading of electricity implementing Article 6 of Directive (EU) 2019/944 and Articles 5 to 10, 13 to 17, 35, 36 and 37 of this Regulation;

(b) details of investment incentive rules for interconnector capacity including locational signals implementing Article 19.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 67(2).

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 67(2).

Article 62

Right of Member States to provide for more detailed measures

This Regulation shall be without prejudice to the rights of Member States to maintain or introduce measures that contain more detailed provisions than those set out in this Regulation, in the guidelines referred to in Article 61 or in the network codes referred to in Article 59, provided that those measures are compatible with Union law.

CHAPTER VIII

FINAL PROVISIONS

Article 63

New interconnectors

New direct current interconnectors may, upon request, be exempted, for a limited period, from Article 19(2) and (3) of this Regulation and from Articles 6 and 43, Article 59(7) and Article 60(1) of Directive (EU) 2019/944 provided that the following conditions are met:

(a) the investment enhances competition in electricity supply;

(b) the level of risk attached to the investment is such that the investment would not take place unless an exemption is granted;

(c) the interconnector is owned by a natural or legal person which is separate, at least in terms of its legal form, from the system operators in whose systems that interconnector is to be built;

(d) charges are levied on users of that interconnector;

(e) since the partial market opening referred to in Article 19 of Directive 96/92/EC of the European Parliament and of the Council (¹⁶), no part of the capital or operating costs of the interconnector has been recovered from any component of charges made for the use of transmission or distribution systems linked by the interconnector; and

(f) an exemption would not be to the detriment of competition or the effective functioning of the internal market for electricity, or the efficient functioning of the regulated system to which the interconnector is linked.

Within two months of receipt of the request for exemption by the last of the regulatory authorities concerned, ACER may provide those regulatory authorities with an opinion. The regulatory authorities may base their decision on that opinion.

In deciding to grant an exemption, regulatory authorities shall take into consideration, on a case-by-case basis, the need to impose conditions regarding the duration of the exemption and non-discriminatory access to the interconnector. When deciding on those conditions, regulatory authorities shall, in particular, take account of additional capacity to be built or the modification of existing capacity, the time-frame of the project and national circumstances.

Before granting an exemption, the regulatory authorities of the Member States concerned shall decide on the rules and mechanisms for management and allocation of capacity. Those congestion-management rules shall include the obligation to offer unused capacity on the market and users of the facility shall be entitled to trade their contracted capacities on the secondary market. In the assessment of the criteria referred to in points (a), (b) and (f) of paragraph 1, the results of the capacity-allocation procedure shall be taken into account.

Where all the regulatory authorities concerned have reached agreement on the exemption decision within six months of receipt of the request, they shall inform ACER of that decision.

The exemption decision, including any conditions referred to in the third subparagraph of this paragraph, shall be duly reasoned and published.

The decision referred to in paragraph 4 shall be taken by ACER:

(a) where the regulatory authorities concerned have not been able to reach an agreement within six months from the date on which the last of those regulatory authorities received the exemption request; or

(b) upon a joint request from the regulatory authorities concerned.

Before taking such a decision, ACER shall consult the regulatory authorities concerned and the applicants.

A copy of every request for exemption shall be transmitted for information without delay by the regulatory authorities to the Commission and ACER on receipt. The decision shall be notified, without delay, by the regulatory authorities concerned or by ACER (the notifying bodies), to the Commission, together with all the relevant information with respect to the decision. That information may be submitted to the Commission in aggregate form, enabling the Commission to reach a well-founded decision. In particular, the information shall contain:

(a) the detailed reasons on the basis of which the exemption was granted or refused, including the financial information justifying the need for the exemption;

(b) the analysis undertaken of the effect on competition and the effective functioning of the internal market for electricity resulting from the grant of the exemption;

(c) the reasons for the time period and the share of the total capacity of the interconnector in question for which the exemption is granted; and

(d) the result of the consultation of the regulatory authorities concerned.

Where the requested information is not provided within the period set out in the Commission's request, the notification shall be deemed to be withdrawn unless, before the expiry of that period, either the period is extended by consent of both the Commission and the notifying bodies, or the notifying bodies, in a duly reasoned statement, inform the Commission that they consider the notification to be complete.

The notifying bodies shall comply with a Commission decision to amend or withdraw the exemption decision within one month of receipt and shall inform the Commission accordingly.

The Commission shall protect the confidentiality of commercially sensitive information.

The Commission's approval of an exemption decision shall expire two years after the date of its adoption in the event that construction of the interconnector has not started by that date, and five years after the date of its adoption if the interconnector has not become operational by that date, unless the Commission decides, on the basis of a reasoned request by the notifying bodies, that any delay is due to major obstacles beyond the control of the person to whom the exemption has been granted.

The Commission may, on request or on its own initiative, reopen proceedings relating to an exemption request where:

(a) taking due account of the legitimate expectations of the parties and of the economic balance achieved in the original exemption decision, there has been a material change in any of the facts on which the decision was based;

(b) the undertakings concerned act contrary to their commitments; or

(c) the decision was based on incomplete, incorrect or misleading information, which was provided by the parties.

Article 64

Derogations

Member States may apply for derogations from the relevant provisions of Articles 3 and 6, Article 7(1), Article 8(1) and (4), Articles 9, 10 and 11, Articles 14 to 17, Articles 19 to 27, Articles 35 to 47 and Article 51 provided that:

(a) the Member State can demonstrate that there are substantial problems for the operation of small isolated systems and small connected systems;

(b) outermost regions within the meaning of Article 349 TFEU cannot be interconnected with the Union's energy market for evident physical reasons.

In the situation referred to in point (a) of the first subparagraph, the derogation shall be limited in time and shall subject to conditions aiming to increase competition and integration with the internal market for electricity.

In the situation referred to in point (b) of the first subparagraph, the derogation shall not be limited in time.

The Commission shall inform the Member States of those applications before adopting the decision, protecting the confidentiality of commercially sensitive information.

A derogation granted under this Article shall aim to ensure that it does not obstruct the transition towards renewable energy, increased flexibility, energy storage, electromobility and demand response.

In its decision granting a derogation the Commission shall set out to what extent the derogation is to take into account the application of the network codes and guidelines.

If the transmission system of Cyprus is not connected to other Member States' transmission systems by means of interconnections by 1 January 2026, Cyprus shall assess the need for derogation from those provisions and may submit a request to prolong the derogation to the Commission. The Commission shall assess whether the application of the provisions risks causing substantial problems to the operation of the electricity system in Cyprus or whether their application in Cyprus is expected to provide benefits to the functioning of the market. On the basis of that assessment, the Commission shall issue a reasoned decision to prolong the derogation in full or in part. The decision shall be published in the Official Journal of the European Union.

The regulatory authorities of Estonia, Latvia and Lithuania may allow their transmission system operators to allocate cross-zonal capacity on a market-based process as set out in Article 41 of Regulation (EU) 2017/2195, without volume limitations until six months after the day on which the co-optimised allocation process is fully implemented and operational pursuant to Article 38(3) of that Regulation.

The Commission shall assess the impact of the request referred to in paragraph 2b in terms of greenhouse gas emissions. The Commission may grant the derogation after assessing the report referred to in paragraph 2d, provided that the following conditions are fulfilled:

(a) the Member State has carried out, on or after 4 July 2019, a competitive bidding process pursuant to Article 22 and for a delivery period after 1 July 2025, which aims to maximise the participation of capacity providers which meet the requirements in Article 22(4);

(b) the amount of capacity offered in the competitive bidding process referred to in point (a) of this paragraph is not sufficient to address the adequacy concern as identified pursuant to Article 20(1) for the delivery period covered by that bidding process;

(c) the generation capacity that emits more than 550 g of CO2 of fossil fuel origin per kWh of electricity is committed or receives payments or commitments for future payments for a period not exceeding one year, and for a delivery period which does not exceed the duration of the derogation, and is procured through an additional procurement process which complies with all requirements of Article 22 except for those laid down in paragraph 4, point (b) of that Article and only for the amount of capacity that is needed to solve the adequacy concern referred to in point (b) of this paragraph.

The derogation pursuant to this paragraph may be applied until 31 December 2028, provided that the conditions set out therein are complied with for the entire duration of the derogation.

The request for the derogation referred to in paragraph 2b shall be accompanied by a report of the Member State which shall include:

(a) an assessment of the impact of the derogation in terms of greenhouse gas emissions, and on the transition towards renewable energy, increased flexibility, energy storage, electromobility and demand response;

(b) a plan with milestones to transition away from the participation of generation capacity referred to in paragraph 2b in capacity mechanisms by the date of the expiry of the derogation, including a plan to procure the necessary replacement capacity in line with the indicative national trajectory for the overall share of renewable energy and an assessment of the investment barriers causing the lack of sufficient bids in the competitive bidding procedure referred to in paragraph 2c, point (a).

Article 65

Provision of information and confidentiality

The Commission shall set a reasonable time limit within which the information is to be provided, taking into account the complexity and urgency of the information required.

When sending a request for information to an undertaking, the Commission shall, at the same time, forward a copy of the request to the regulatory authorities of the Member State in whose territory the seat of the undertaking is situated.

The Commission shall, at the same time, send a copy of its decision to the regulatory authorities of the Member State within the territory of which the person is resident or the seat of the undertaking is situated.

The Commission shall not disclose information acquired pursuant to this Regulation where that information is covered by the obligation of professional secrecy.

Article 66

Penalties

Article 67

Committee procedure

Article 68

Exercise of the delegation

Article 69

Commission reviews and reports

The Commission shall submit a detailed report of its assessment to the European Parliament and to the Council by the same date.

By 31 December 2026, the Commission shall, where appropriate, submit legislative proposals on the basis of its assessment.

The Commission’s report shall assess, inter alia:

(a) the effectiveness of the current structure and functioning of the short-term electricity markets, including in crisis or emergency situations, and, more generally, the potential inefficiencies concerning the internal electricity market and the different options for the introduction of possible remedies and tools to be applied in crisis or emergency situations in view of the experience at international level and of the evolution and new developments in the internal electricity market;

(b) the suitability of the current Union legal and financing framework on distribution grids to achieve the Union’s renewable and internal energy market objectives.

(c) in accordance with Article 19a, the potential and viability of the establishment of one or several Union market platforms for PPAs, to be used on a voluntary basis, including the interaction of those potential platforms with other existing electricity market platforms and the pooling of demand for PPAs through aggregation.

By 17 April 2025, the Commission shall, after consultation with Member States, submit proposals with a view to simplifying the process of assessing capacity mechanisms as appropriate.

Article 69a

Interaction with Union financial legal acts

This Regulation shall be without prejudice to the application of Regulations (EU) No 648/2012 and (EU) No 600/2014 and of Directive 2014/65/EU as regards activities of market participants or market operators involving financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU.

Article 70

Repeal

Regulation (EC) No 714/2009 is repealed. References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table set out in Annex III.

Article 71

Entry into force

Notwithstanding the first subparagraph, Articles 14, 15, 22(4), 23(3) and (6), 35, 36 and 62 shall apply from the date of entry into force of this Regulation. For the purpose of implementing Article 14(7) and Article 15(2), Article 16 shall apply from that date.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

ANNEX I

TASKS OF REGIONAL COORDINATION CENTRES

1. Coordinated capacity calculation

1.1Regional coordination centres shall carry out the coordinated calculation of cross-zonal capacities.

1.2.Coordinated capacity calculation shall be performed for all allocation timeframes.

1.3Coordinated capacity calculation shall be performed on the basis of the methodologies developed pursuant to the guideline on capacity allocation and congestion management adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009.

1.4Coordinated capacity calculation shall be performed based on a common grid model in accordance with point 3.

1.5Coordinated capacity calculation shall ensure an efficient congestion management in accordance with the principles of congestion management defined in this Regulation.

2. Coordinated security analysis

2.1Regional coordination centres shall carry out a coordinated security analysis aiming to ensure secure system operation.

2.2Security analysis shall be performed for all operational planning timeframes, between the year-ahead and intraday timeframes, using the common grid models.

2.3Coordinated security analysis shall be performed on the basis of the methodologies developed pursuant to the system operation guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009.

2.4Regional coordination centres shall share the results of the coordinated security analysis with at least the transmission system operators in the system operation region.

2.5When as a result of the coordinated security analysis a regional coordination centre detects a possible constraint, it shall design remedial actions maximising effectiveness and economic efficiency.

3. Creation of common grid models

3.1Regional coordination centres shall set up efficient processes for the creation of a common grid model for each operational planning timeframe between the year-ahead and intraday timeframes.

3.2Transmission system operators shall appoint one regional coordination centre to build the Union-wide common grid models.

3.3Common grid models shall be performed in accordance with the methodologies developed pursuant to the system operation guideline and the capacity allocation and congestion management guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009.

3.4Common grid models shall include relevant data for efficient operational planning and capacity calculation in all operational planning timeframes between the year-ahead and intraday timeframes.

3.5Common grid models shall be made available to all regional coordination centres, transmission system operators, ENTSO for Electricity and, upon request, to ACER.

4. Support for transmission system operators' defence and restoration plans with regard to the consistency assessment

4.1Regional coordination centres shall support the transmission system operators in the system operation region in carrying out the consistency assessment of transmission system operators' defence plans and restoration plans pursuant to the procedures set out in the network code on electricity emergency and restoration adopted on the basis of Article 6(11) of Regulation (EC) No 714/2009.

4.2All transmission system operators shall agree on a threshold above which the impact of actions of one or more transmission system operators in the emergency, blackout or restoration states is considered significant for other transmission system operators synchronously or non-synchronously interconnected.

4.3In providing support to the transmission system operators, the regional coordination centre shall:

(a) identify potential incompatibilities;

(b) propose mitigation actions.

4.4Transmission system operators shall assess and take into account the proposed mitigation actions.

5. Support the coordination and optimisation of regional restoration

5.1Each relevant regional coordination centre shall support the transmission system operators appointed as frequency leaders and the resynchronisation leaders pursuant to the network code on emergency and restoration adopted on the basis of Article 6(11) of Regulation (EC) No 714/2009 to improve the efficiency and effectiveness of system restoration. The transmission system operators in the system operation region shall establish the role of the regional coordination centre relating to the support to the coordination and optimisation of regional restoration.

5.2Transmission system operators may request assistance from regional coordination centres if their system is in a blackout or restoration state.

5.3Regional coordination centres shall be equipped with the close to real time supervisory control and data acquisition systems with the observability defined by applying the threshold referred to in point 4.2.

6. Post-operation and post-disturbances analysis and reporting

6.1Regional coordination centres shall investigate and prepare a report on any incident above the threshold referred to in point 4.2. The regulatory authorities in the system operation region and ACER may be involved in the investigation upon their request. The report shall contain recommendations aiming to prevent similar incidents in future.

6.2Regional coordination centres shall publish the report. ACER may issue recommendations aiming to prevent similar incidents in future.

7. Regional sizing of reserve capacity

7.1Regional coordination centres shall calculate the reserve capacity requirements for the system operation region. The determination of reserve capacity requirements shall:

(a) pursue the general objective to maintain operational security in the most cost effective manner;

(b) be performed at the day-ahead or intraday timeframe, or both;

(c) calculate the overall amount of required reserve capacity for the system operation region;

(d) determine minimum reserve capacity requirements for each type of reserve capacity;

(e) take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement;

(f) set out the necessary requirements for the geographical distribution of required reserve capacity, if any.

8. Facilitation of the regional procurement of balancing capacity

8.1Regional coordination centres shall support the transmission system operators in the system operation region in determining the amount of balancing capacity that needs to be procured. The determination of the amount of balancing capacity shall:

(a) be performed at the day-ahead or intraday timeframe, or both;

(b) take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement;

(c) take into account the volumes of required reserve capacity that are expected to be provided by balancing energy bids, which are not submitted based on a contract for balancing capacity.

8.2Regional coordination centres shall support the transmission system operators of the system operation region in procuring the required amount of balancing capacity determined in accordance with point 8.1. The procurement of balancing capacity shall:

(a) be performed at the day-ahead or intraday timeframe, or both;

(b) take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement.

9. Week-ahead to at least day-ahead regional system adequacy assessments and preparation of risk reducing actions

9.1Regional coordination centres shall carry out week-ahead to at least day-ahead regional adequacy assessments in accordance with the procedures set out in Regulation (EU) 2017/1485 and on the basis of the methodology developed pursuant Article 8 of Regulation (EU) 2019/941.

9.2Regional coordination centres shall base the short-term regional adequacy assessments on the information provided by the transmission system operators of system operation region with the aim of detecting situations where a lack of adequacy is expected in any of the control areas or at regional level. Regional coordination centres shall take into account possible cross-zonal exchanges and operational security limits in all relevant operational planning timeframes.

9.3When performing a regional system adequacy assessment, each regional coordination centre shall coordinate with other regional coordination centres to:

(a) verify the underlying assumptions and forecasts;

(b) detect possible cross-regional lack of adequacy situations.

9.4Each regional coordination centre shall deliver the results of the regional system adequacy assessments together with the actions it proposes to reduce risks of lack of adequacy to the transmission system operators in the system operation region and to other regional coordination centres.

10. Regional outage planning coordination

10.1Each Regional coordination centre shall carry out regional outage coordination in accordance with the procedures set out in the system operation guideline adopted on the basis of Article 18(5) of Regulation (EC) No 714/2009 in order to monitor the availability status of the relevant assets and coordinate their availability plans to ensure the operational security of the transmission system, while maximising the capacity of the interconnectors and the transmission systems affecting cross-zonal flows.

10.2Each Regional coordination centre shall maintain a single list of relevant grid elements, power generating modules and demand facilities of the system operation region and make it available on the ENTSO for Electricity operational planning data environment.

10.3Each Regional coordination centre shall carry out the following activities related to outage coordination in the system operation region:

(a) assess outage planning compatibility using all transmission system operators' year-ahead availability plans;

(b) provide the transmission system operators in the system operation region with a list of detected planning incompatibilities and the solutions it proposes to solve the incompatibilities.

11. Optimisation of inter-transmission system operator compensation mechanisms

11.1The transmission system operators in the system operation region may jointly decide to receive support from the regional coordination centre in administering the financial flows related to settlements between transmission system operators involving more than two transmission system operators, such as redispatching costs, congestion income, unintentional deviations or reserve procurement costs.

12. Training and certification of staff working for regional coordination centres

12.1Regional coordination centres shall prepare and carry out training and certification programmes focusing on regional system operation for the personnel working for regional coordination centres.

12.2The training programs shall cover all the relevant components of system operation, where the regional coordination centre performs tasks including scenarios of regional crisis.

13. Identification of regional electricity crisis scenarios

13.1If the ENTSO for Electricity delegates this function, regional coordination centres shall identify regional electricity crisis scenarios in accordance with the criteria set out in Article 6(1) of Regulation (EU) 2019/941.

The identification of regional electricity crisis scenarios shall be performed in accordance with the methodology set out in Article 5 of Regulation (EU) 2019/941.

13.2Regional coordination centres shall support the competent authorities of each system operation region upon their request in the preparation and carrying out of biennial crisis simulation in accordance with Article 12(3) of Regulation (EU) 2019/941.

14. Identification of needs for new transmission capacity, for upgrade of existing transmission capacity or their alternatives

14.1Regional coordination centres shall support transmission system operators in the identification of needs for new transmission capacity, for an upgrade of existing transmission capacity or for their alternatives, to be submitted to the regional groups established pursuant to Regulation (EU) No 347/2013 and to be included in the ten-year network development plan referred to in Article 51 of Directive (EU) 2019/944.

15. Calculation of the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms

15.1Regional coordination centres shall support transmission system operator in calculating the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located.

15.2The calculation shall be performed in accordance with the methodology set out in point (a) of Article 26(11).

15.3Regional coordination centres shall provide a calculation for each bidding zone border covered by the system operation region.

16. Preparation of seasonal adequacy assessments

16.1If the ENTSO for Electricity delegates this function pursuant to Article 9 of Regulation (EU) 2019/941, regional coordination centres shall carry out regional seasonal adequacy assessments.

16.2The preparation of seasonal adequacy assessments shall be carried out on the basis of the methodology developed pursuant to Article 8 of Regulation (EU) 2019/941.

ANNEX II

REPEALED REGULATION WITH LIST OF THE SUCCESSIVE AMENDMENTS THERETO

Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39)	Point (a) of Article 8(3) Point (a) of Article 8(10) Article 11 Article 18(4a) Article 23(3)
Commission Regulation (EU) No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council (OJ L 163, 15.6.2013, p. 1)	Points 5.5 to 5.9 of Annex I

ANNEX III

CORRELATION TABLE

Regulation (EC) No 714/2009	This Regulation
—	Article 1(a)
—	Article 1(b)
Article 1(a)	Article 1(c)
Article 1(b)	Article 1(d)
Article 2(1)	Article 2(1)
Article 2(2)(a)	Article 2(2)
Article 2(2)(b)	Article 2(3)
Article 2(2)(c)	Article 2(4)
Article 2(2)(d)	—
Article 2(2)(e)	—
Article 2(2)(f)	—
Article 2(2)(g)	Article 2 (5)
—	Article 2 (6) to (71)
—	Article 3
—	Article 4
—	Article 5
—	Article 6
—	Article 7
—	Article 8
—	Article 9
—	Article 10
—	Article 11
—	Article 12
—	Article 13
—	Article 14
—	Article 15
Article 16(1) to (3)	Article 16(1) to (4)
—	Article 16(5) to (8)
Article 16(4) to (5)	Article 16(9) to (11)
—	Article 16(12) and (13)
—	Article 17
Article 14(1)	Article 18(1)
—	Article 18(2)
Article 14(2) to (5)	Article 18(3) to (6)
—	Article 18(7) to (11)
—	Article 19(1)
Article 16(6)	Article 19(2) and (3)
—	Article 19(4) and (5)
—	Article 20
—	Article 21
—	Article 22
Article 8(4)	Article 23(1)
—	Article 23(2) to (7)
—	Article 25
—	Article 26
—	Article 27
Article 4	Article 28(1)
—	Article 28(2)
Article 5	Article 29 (1) to (4)
—	Article 29(5)
Article 8(2) (first sentence)	Article 30(1)(a)
Article 8(3)(b)	Article 30(1)(b)
—	Article 30(1)(c)
Article 8(3)(c)	Article 30 (1)(d)
—	Article 30 (1)(e) and (f)
	Article 30(1) (g) and (h)
Article 8 (3)(a)	Article 30(1)(i)
Article 8(3)(d)	Article 30(1)(j)
	Article 30(1)(k)
Article 8(3)(e)	Article 30(1)(l)
	Article 30(1)(m) to (o)
—	Article 30(2) and (3)
Article 8(5)	Article 30(4)
Article 8(9)	Article 30(5)
Article 10	Article 31
Article 9	Article 32
Article 11	Article 33
Article 12	Article 34
—	Article 35
—	Article 36
—	Article 37
—	Article 38
—	Article 39
—	Article 40
	Article 41
—	Article 42
—	Article 43
—	Article 44
—	Article 45
—	Article 46
—	Article 47
Article 8(10)	Article 48
Article 13	Article 49
Article 2(2) (final subparagraph)	Article 49(7)
Article 15	Article 50(1) to (6)
Annex I point 5.10	Article 50(7)
Article 3	Article 51
—	Article 52
—	Article 53
	Article 54
—	Article 55
—	Article 56
—	Article 57
—	Article 58
Article 8(6)	Article 59(1)(a), (b) and (c)
—	Article 59(1)(d) and (e)
	Article 59(2)
Article 6(1)	Article 59(3)
Article 6(2)	Article 59(4)
Article 6(3)	Article 59(5)
—	Article 59(6)
Article 6(4)	Article 59(7)
Article 6(5)	Article 59(8)
Article 6(6)	Article 59(9)
Article 8(1)	Article 59(10)
Article 6(7)	—
Article 6(8)	—
Article 6(9) and (10)	Article 59(11) and (12)
Article 6(11)	Article 59(13) and (14)
Article 6 (12)	Article 59(15)
Article 8(2)	Article 59(15)
—	Article 60(1)
Article 7(1)	Article 60(2)
Article 7(2)	Article 60(3)
Article 7(3)	—
Article 7(4)	—
—	Article 61(1)
—	Article 61(2)
Article 18(1)	Article 61(3)
Article 18(2)	—
Article 18(3)	Article 61(4)
Article 18(4)	—
Article 18(4a)	Article 61(5)
Article 18(5)	Article 61(5) and (6)
Article 19	—
Article 21	Article 62
Article 17	Article 63
—	Article 64
Article 20	Article 65
Article 22	Article 66
Article 23	Article 67
Article 24	—
—	Article 68
—	Article 69
Article 25	Article 70
Article 26	Article 71