Policies & Issues

Network Codes


What is it?

With the 3rd Liberalisation package (Electricity and Gas Regulations), the European Union aims to complete the integration of national energy markets by 2014.  The legislation includes 'unbundling' guidelines requiring energy transmission networks to run independently from the production and supply side, thereby providing open markets and competition.  In order to achieve these goals, network codes have to be established.    The European Network of Transmission System Operators for Electricity (ENTSO-E) was established under the EU’s Third Energy Package.   ENTSO-E is as an official entity under Article 5 of Regulation 714/2009.  Although the Package did not formally apply until March 2011, ENTSO-E has been fully operational since July 2009. Throughout 2012, the ENTSO-E has undertaken certain activities on the development of grid and network codes of relevance to Orgalime.  Each of them is in different stages of the indicative drafting plan:


Why is it important?

Network codes help to streamline conditions and requirements for all parties involved in the electricity transmission system, from end users to technology providers.  Security of supply, the promotion of new infrastructures interconnecting the European grid and market integration are built up on network codes.  The engineering Industry has a huge interest in appropriate network codes as they have an impact for installed and new equipment in terms of transformation, storage, voltage level and data protection.  Network codes have to correspond with developments in new demand response technology and end users’ interests.


Our viewpoint

The European engineering industries represented by Orgalime support the development of a network codes and the involvement of all stakeholders.  Orgalime highlights grid stability/system security as essential, which should be the key objective of grid codes elaborated by ENTSO-E, as this represents an indispensable prerequisite for manufacturing operations in Europe.  In our position paper on the draft demand connection code we argue that positive contribution of any demand side resource to grid balancing should be acknowledged by the network code.  In addition, we promote the right of the end user to decide if his property should provide a specific service at a specific time to the grid or not.  Overall, Orgalime demands all activities in the electricity transmission network to closely align with the European Standardisation Organisations.  


How we’ve been engaged

Orgalime is represented in the various working groups and workshops ENTSO-E provides on the different network codes.  Orgalime has given its opinion to the Ten Year Network Development Plan and monitors activities in related fields.  The involvement of Orgalime in the ENTSO-E activities has a high priority within the association.


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