Code
The Decree-Law no. 15/2022, of 14 January, provides the framework for the Networks Operation Code (ROR), which is approved by ERSE, establishing, among others:
- The conditions for managing electricity flows in the networks, including procuring and activating flexibility resources, in tandem with the European network codes and ensuring their interoperability
- The conditions for the technical verification of network operation and for ensuring the real-time demand-generation equilibrium through procurement and activation of balancing services
- The rules for calculating and billing system imbalance costs
- The conditions by which the global system manager monitors the availability of the power plants and network elements, promoting the coordination of the planned outages.
By its nature, this code focus mostly on the Global Manager of the System and on transmission and distribution network operators, either in the mainland or in the islands.
ROR was approved by Regulation no. 816/2023, of 27 July, following Public Consultation no 113. The previous versions can be consulted at ERSE's Normative Acts.
Networks Operation Code – only available in Portuguese
Other legal instruments
- Manual of Procedures of the Global Management System (MPGGS)
The Networks Operation Code (ROR) and the Commercial Relations Code (RRC) establish that ERSE is responsible for the approval of the MPGGS, following a proposal from the transmission network operator (TSO) and after hearing all the entities to which it applies.
The MPGGS establishes the provisions applicable to the functioning of the Global System Management activity carried out by the transmission network operator, REN, particularly with regard to security criteria and functioning of the SEN operation and operating rules for system service markets.
The current MPGGS was approved by Diretiva n.º 19/2023, of 26 December, following a Consultation whose contributions were received from October 23 to November 8, highlighting on this amendment:
- The implementation of the standardized balance product (Frequency Restoration Reserve with manual activation – mFRR), whose main characteristics were approved by ACER;
- Acession to the European mFRR Platform (MARI);
- The establishment of a specific transitory fast reserve product, for additional system management needs, as may occur in large volume transitions of the interconnection program with and in the resolution of certain network congestions;
- The introduction of a new mFRR specific product, Band of mFRR;
- The closure of the pilot project for demand response in the balancing market, and with the general rules set out in ROR and MPGGS now applying.
Together with MPGGS, Directive 20/2023, of December 26, was approved, which establishes special rules applicable to the participation of demand in the balancing markets, within the scope of the application of network access tariffs and commercial relationships.
The MPGGS includes the discipline of ACER Decision 18/2020, of July 15, which establishes a harmonized methodology, among the different operators of transmission networks in the European Union, for determining the settlement of deviations by market agents responsible for this settlement (BRP), with regard to calculating the deviations in each settlement period and determining the deviation prices to be applied.
The European regulatory framework and national legislation also provide access for consumers or storage facilities to the provision of system services, either directly or through aggregation. Thus, the MPGGS updates the existing regulatory framework paving the way to enable the full participation of demand and small facilities (including storage, production or consumption) in system services in the future.
On March 22, 2023, ERSE approved Directive no. 8/2023, which amends Directive no. 13-A/2022 and which approves the implementation of the exceptional mechanism for adjusting electricity production costs, where Procedure No. 21-A relating to the Exceptional Mechanism for Adjustment of Electricity Production Costs is amended, within the scope of Decree-Law No. 33/2022, of May 14, in its current wording.
List of RNT Balance Areas (Diretiva n.º 9/2020 of 29 May)
- Diretiva n.º 14/2020, of 19 July: Entities qualified to integrate the Unidade de Desvio de Comercialização (Commercialization Imbalance Unit) under the terms of the MPGGS
- Pilot Project for Demand Reserve Participation in the Regulatory Reserve Market
The Pilot Project, which started on April 2, 2019 and lasts for 1 year, aims to ensure equal treatment in the participation of qualified consumers, or their representatives, in the regulation reserve market.
Consumers qualified by the Transmission Grid Operator (TSO) who have a demand capacity equal to or greater than 1 MW may participate in the Pilot Project, obtain the necessary authorization from the TSO that proves the technical and operational capacity to provide the regulation reserve, and are connected to the grid at a voltage level equal to or greater than medium voltage.
On December 28, 2018, ERSE approved Diretiva n.º 4/2019, of January 15, 2019, defining the rules of the Pilot Project for the participation of demand in the regulation reserve market.
For this approval, a process of preparation, participation and consultation took place, which is described in the document “Processo de aprovação da Diretiva n.º 4/2019, de 15 de janeiro”. The document “Ações no decurso do Projeto Piloto” presents the main activities that took place between April 2, 2019 and March 30, 2020.
On 10 April, Diretiva n.º 9/2019 approved the General Conditions of the Contract for Adhesion to the System Services Market within the scope of the Pilot Project.
On August 14, 2019, an Interpretative Note was approved on how to participate in the Pilot Project through a third party acting as Representative, in order to clarify and speed up the implementation of the concept.
Diretiva n.º 6/2020, of 20 April, approved that, as of 2 April 2020, the rules established by Diretiva n.º 4/2019, of 15 January, on participation consumption in the Regulation Reserve Market and, the parties willing, the respective contracts. This provision is transitory and will remain in force until the amendments to be introduced in the current regulations are approved.
On 30 July 2020, ERSE approved the Operational Report of the Pilot Project, during its execution phase, which includes the Report prepared by REN and the Contributions of the agents directly involved.
- Pilot project TERRE
Within the scope of the implementation of the Third Package of European Energy Legislation, published in 2009, and of the processes of development and approval of the European Grid Codes, some pilot projects of voluntary application were implemented, among which the TERRE (Trans European Replacement Reserves Exchanges”).
Started in 2013, participated in this project REN - Rede Eléctrica Nacional, REE (Spain), RTE (France), National Grid (Great Britain), Swissgrid (Switzerland) and TERNA ( Italy).
The documents describing the pilot project model ("Approval Package") and the "Common Opinion Paper" issued by the regulatory authorities involved can be consulted on the ACER website.
- Communication system procedure, execution and control of the interruptibility service
With a view to harmonize interruptibility conditions in the Iberian market, Portaria n.º 592/2010, of 29 July, establishes the conditions applicable to the interruptibility service, delivered by an electricity consumer to the TSO, the remuneration system for the service and the penalties associated with possible non-compliance.
the Procedure for the communication, execution and control system of the interruptibility service, through Order no. 122/2011, of 4 January.
Under the terms of the Portaria, ERSE approved o Procedure for the communication, execution and control system of the interruptibility service, through Despacho n.º 122/2011, of 4 January.
Pilot-projects
The Code for electricity Network Operation establishes a framework for pilot-projects. These projects are approved by ERSE according to the following requirements:
- The pilot-project can be submitted to ERSE by any entity.
- The pilot-project shall aim to test the technical and economic viability and applicability of innovative practices and technologies, including proposals for legal and regulatory developments.
- The promotor publishes the goals and results of the project.
- The promotor submits follow-up reports to ERSE for monitoring purposes.
The list of the approved pilot-projects can be accessed here.