1. European TSOs and DSOs have prepared a joint network code on demand response.
2. The code aims to facilitate the integration of demand side flexibility for decarbonization.
3. The code sets requirements for demand response, energy storage, distributed generation, and demand curtailment rules, including aggregation rules, for market integration and efficient functioning of the electricity network.
European TSOs and DSOs, represented by ENTSO-E and DSO Entity, have collaborated to create a joint network code on demand response at the request of the European Commission. This code aims to integrate demand side flexibility into power systems to support decarbonization.
The network code outlines requirements for demand response, energy storage, distributed generation, and demand curtailment rules to enhance market integration, competition, and the efficient functioning of the market. It also ensures resources and service providers have access to electricity markets in line with market operation principles.
Key points of the code include promoting fair competition in the internal electricity market, supporting security at power system and network levels, integrating renewable energy sources, and enabling EU-wide electricity trade. The code allows for the participation of resources such as production, consumption, or energy storage, and procurement is non-discriminatory and technology neutral.
The proposed code includes provisions for managing congestion and voltage issues at the local level through efficient and effective solutions selected by system operators. Value stacking and data exchange between parties are facilitated to maximize the value of flexible units and standardize exchanges.
Requirements in the code also include the development of distribution network development plans, TSO-DSO and DSO-DSO coordination, and forecasting grid status by DSOs. The proposed code has been submitted to ACER for review and approval by the European Commission as a regulation.