Council of the European Union Brussels, 13 December 2017 (OR. en)

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Council of the European Union Brussels, 13 December 2017 (OR. en) Interinstitutional File: 2016/0379 (COD) 15237/17 ADD 1 NOTE ENER 487 ENV 1016 CLIMA 336 COMPET 841 CONSOM 384 FISC 322 CODEC 1970 From: Permanent Representatives Committee (Part 1) To: Council No. Cion doc.: 15135/1/16 ENER 418 ENV 758 CLIMA 169 COMPET 637 CONSOM 301 FISC 221 IA 131 CODEC 1809 REV 1 + ADD 1 REV 1 + ADD 2 REV 1 Subject: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the internal market for electricity (recast) - Annex I - General approach Delegations will find attached the Presidency's revised proposal on the Annex I to the draft regulation, amended in light of the discussions in the Energy Working Party and the written comments received. Additions from the first revision (doc. 10681/17 ADD 1) compared to the Commission proposal are indicated in bold. New text added following the first revision is indicated in bold underline. All deletions are marked by [ ] (text was deleted). 15237/17 ADD 1 BL/st 1 DGE 2B EN

ANNEX ANNEX I [ ] TASKS OF REGIONAL [ ]SECURITY COORDINATORS 1. Coordinated capacity calculation 1.1 Regional [ ] security coordinators shall perform the coordinated calculation of cross zonal capacities. [ ] Coordinated capacity calculation shall be performed [ ] for [ ] the day-ahead and intraday timeframes [ ]. 1.2a Coordinated capacity calculation shall be performed on the basis of the methodologies developed pursuant to Articles 21, 26, 29 and 30 of [Commission Regulation 2015/1222 establishing a guideline on capacity allocation and congestion management]. 1.3 Coordinated capacity calculation shall be performed based on a common [ ] grid model in accordance with point 3 [ ]. 1.4 Coordinated capacity calculation shall ensure an efficient congestion management in accordance with the principles of congestion management defined in this Regulation. 2. Coordinated security analysis 2.1. Regional [ ] security coordinators shall perform coordinated security analysis aiming at ensuring secure system operation. 15237/17 ADD 1 BL/st 2

2.2 Security analysis shall be performed for all operational planning timeframes, between the year-ahead and intraday timeframes, using the common [ ] grid models. 2.2a Coordinated security analysis shall be performed on the basis of the methodologies developed pursuant to Articles 75 and 76 of Commission Regulation 2017/1485 establishing a guideline on electricity transmission system operation. 2.3 Regional [ ] security coordinators shall share the results of the coordinated security analysis with at least the transmission system operators of the system operation region. 2.4 When as a result of the coordinated security analysis a regional [ ] security coordinator detects a possible constraint, it shall design remedial actions maximizing effectivenes and economic efficiency. 3. Creation of common [ ] grid models 3.1 Regional [ ] security coordinators shall set up efficient processes for the creation of a common [ ] grid model for each operational planning timeframe between the yearahead and intraday timeframes. 3.2 Transmission system operators shall appoint one regional [ ] security coordinator to build the Union-wide common [ ] grid models [ ]. 3.2a Common grid models shall be performed in accordance with the methodologies developed pursuant to Articles 67, 70 and 79 of Commission Regulation 2017/1485 establishing a guideline on electricity transmission system operation and pursuant to Article 28 of Commission Regulation 2015/1222 establishing a guideline on capacity allocation and congestion management. 15237/17 ADD 1 BL/st 3

3.3 Common [ ] 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. 3.4 Common [ ] grid models shall be made available to all regional [ ] security coordinators, transmission system operators, ENTSO for Electricity and the Agency, upon its request. 4. Support to the consistency assessment of transmission system operators' defense plans and restoration plans 4.1a Regional security coordinators shall support the transmission system operators of the system operation region in carrying out the consistency assessment of transmission system operators' defense plans and restoration plans pursuant to the procedures set out in Article 6 of [Commission Regulation xxxx/xxxx establishing a network code on electricity emergency and restoration]. 4.1 All 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. [ ] 4.3 In providing support to the transmission system operators, the regional [ ] security coordinator shall: (a) (b) identify potential incompatibilities; propose mitigation actions. 15237/17 ADD 1 BL/st 4

4.4 Transmission system operators shall assess and take into account the proposed mitigation actions. 5. (previously point 9) Week-ahead to day-ahead regional system adequacy [ ] assessments and preparation of risk reducing actions 5.1 (ex 9.1) Regional regional [ ] security coordinators shall perform week ahead to [ ] dayahead regional adequacy assessments in accordance with the procedures set out in Article 81 of Commission Regulation 2017/1485 establishing a guideline on electricity system operation and on the basis of the methodology developed pursuant Article 8 of [Risk preparedness Regulation]. 5.2 (ex 9.2) Regional [ ] security coordinators 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 [ ] security coordinators shall take into account possible cross-zonal exchanges and operational security limits in all relevant operational planning timeframes. 5.3 (ex 9.3) When performing a regional [ ] system adequacy assessment, each regional [ ] security coordinator shall coordinate with other regional [ ] security coordinators to: (a) (b) verify the underlying assumptions and forecasts; detect possible cross-regional lack of adequacy situations. 5.4 (ex 9.4) Each regional [ ] security coordinator shall deliver the results of the regional generation adequacy assessments together with the actions it proposes to reduce risks of lack of adequacy to the transmission system operators of the system operation region and to other regional [ ] security coordinators. 15237/17 ADD 1 BL/st 5

6. (previously point 10) Regional outage planning coordination 6.1 (ex 10.1) Each regional [ ] security coordinator shall perform regional outage coordination in accordance with the procedures set out in Article 80 of Commission Regulation 2017/1485 establishing a guideline on electricity transmission system operation 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 maximizing the capacity of the interconnectors and/or the transmission systems affecting cross-zonal flows. 6.2 (ex 10.2) Each regional [ ] security coordinator 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. 6.3 (ex 10.3) Each regional [ ] security coordinator shall carry out the following activities related to outage coordination in the system operation region: (a) (b) assess outage planning compatibility using all transmission system operators year-ahead availability plans; provide the transmission system operators of the system operation region with a list of detected planning incompatibilities and the solutions it proposes to solve the incompatibilities. 7. (previously point 12) Training and certification of staff working for regional security coordinators 7.1 (ex 12.1) Regional [ ] security coordinators shall prepare and execute training and certification programs focusing on regional system operation for the personnel working for regional security coordinators [ ] 15237/17 ADD 1 BL/st 6

7.2 (ex 12.2) The training programs shall cover all the relevant components of system operation, where the regional security coordinator performs tasks including scenarios of regional crisis. 8. (previously point 5) Support the coordination and optimization of regional restoration [ ] 8.2 (ex 5.2) Each relevant regional [ ] security coordinator shall [ ] support the transmission system operators appointed as [ ] frequency leaders and the resynchronisation leaders pursuant to Articles 29 and 33 of Commission Regulation xxxx/xxxx establishing a network code on emergency and restoration [aiming at improving] to improve the efficiency and effectiveness of system restoration. The transmission system operators of the system operation region shall define the role of the regional security coordinator relating to the support to the coordination and optimisation of regional restoration. 8.3 (ex last sentence of 5.2) Transmission system operators [ ] may [ ] request assistance from regional [ ] security coordinators if their system is in a blackout or restoration state. 8.4 Regional security coordinators shall be equipped with the close to real time supervisory control and data acquisition systems with the observability defined by applying the threshold defined in accordance with point 4.1. 9. (previously point 6) Post-operation and post-disturbances analysis and reporting 9.1 (ex 6.1) Regional [ ] security coordinators shall [ ] prepare a report on any incident above the threshold defined in accordance with point 4.1. The regulatory authorities of the system operation region and the Agency may be involved in the investigation upon their request. The report shall contain recommendations aiming at preventing similar incidents in future. 15237/17 ADD 1 BL/st 7

9.2 (ex 6.2) The report shall be [ ] published. The Agency may issue recommendations aiming at preventing similar incidents in future. 10. Calculation of the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms. 10.1 Regional security coordinators shall support TSO 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. 10.2 The calculation shall be performed in accordance with the methodology set out in Article 21(10)(a) of this Regulation. 10.3 Regional security coordinators shall provide a calculation for each bidding zone border covered by the system operation region. 11. Preparation of seasonal outlooks 11.1 If the ENTSO for Electricity delegates this function pursuant to Article 9 of [Risk preparedness Regulation], regional security coordinators shall carry out regional seasonal adequacy outlooks. 11.2 The preparation of seasonal outlooks shall be carried out on the basis of the methodology developed pursuant to Article 8 of [Risk preparedness Regulation]. 12. (previously point 11) Optimization of inter-transmission system operators compensation mechanisms 15237/17 ADD 1 BL/st 8

12.1 (ex 11.1) The transmission system operators of the system operation region may jointly decide to receive support from the regional security coordinator [ ] in administering the financial flows related to inter-transmission system operators settlements involving more than two transmission system operators, such as redispatching costs, congestion income, unintentional deviations or reserve procurement costs. 13. Identification of regional crisis situations and preparation of risk mitigation scenarios reviewing the risk preparedness plans as established in Member States 13.1 If the ENTSO for Electricity delegates this function, regional [ ] security coordinators shall identify regional crisis scenarios in accordance with the criteria set out in Article 6(1) of [Risk Preparedness Regulation as proposed by COM(2016) 862]. The identification of regional crisis scenarios shall be performed in accordance with the methodology set out in Article 5 of the [Risk Preparedness Regulation]. 13.2 Regional [ ] security coordinators shall support the competent authorities of each system operation region in the preparation and carrying out of [ ] annual crisis simulation [ ] in accordance with Article 12(3) of [Risk Preparedness Regulation as proposed by COM(2016) 862]. The preparation of risk mitigation scenarios shall be performed in accordance with the process set out in Article 12 of the [Risk Preparedness Regulation]. [ ] [ ] 15237/17 ADD 1 BL/st 9