Implementing a distribution network flexibility mechanism
Member States were required to implement a mechanism for procuring flexibility services from the distribution network and frequency-independent services under the provisions of the Directive of the European Parliament and of the Council (EU) of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (hereinafter: Directive 2019/944). In September 2023, the Act amending the Energy Law and certain other acts, which implemented Directive 2019/944, came into force.
The implementation of the mechanism for procuring flexibility services from the distribution network and non-frequency services was intended, among other things, to reduce the risk of blackout – thanks to the increased participation of system users connected to the distribution network in the provision of system services and balancing of the NPS. The above services, provided to system operators, expand the ability of operators to ensure the secure and reliable operation of the power system.
In carrying out work related to wide-ranging flexibility services, PSE is active in the international, EU-funded research and development project OneNet. The aim of the project is to develop and implement an implementation concept for the work, with a focus on the Polish demonstrator, i.e. to define, test and demonstrate the acquisition of procurement of services from flexibility sources that can be used in the future to support grid management by system operators.
The OneNet project began on 1 October 2020, under which, among other things:
- services were defined, the procurement of which from entities connected to the MV and LV distribution network is considered useful for the TSO;
- a prototype of the flexibility platform was built and tested;
- customers were procured who provided services to TSOs/OSDs;
- a demonstration was carried out on the purchase and use of NPS balancing services, congestion management and voltage control in HV, MV and LV distribution networks.
The experience gained during the implementation of the project will be used by PSE and the DSOs at the stage of implementing flexibility services in the territory of the Republic of Poland in accordance with the requirements of Directive 2019/944.
In 2022, the European Commission initiated the process of developing a new network code or modifying the existing codes so that their scope includes the area of services provided by so-called flexible consumers. The parties involved included all distributed resources (in particular, consumers, small-scale generators and electricity storage owners). In accordance with the legislative procedure, in 2022, the Agency for the Cooperation of Energy Regulators (ACER) developed and held public consultations on the “Framework Guideline on Demand Response” document, or guidelines on the content of the future network code. PSE participated in ENTSO-E working groups in this area. Our company also submitted, through ENTSO-E, its comments as part of the consultation process. On 21 December 2022, ACER published and submitted to the EC the final “Framework Guideline on Demand Response”.
In March 2023, the European Commission requested the EU DSO Entity and ENTSO-E to develop, on the basis of the “Framework Guideline on Demand Response”, a Demand Response Network Code (NC DR), which would specifically cover the service area of distributed resources (including consumers, heat pump owners, small-scale generators and electricity storage owners). PSE actively participated in working groups made up of representatives of both the EU DSO Entity and ENTSO-E to develop proposals for the NC DR. From 29 September to 10 November 2023, public consultations were held on the jointly developed draft NC DR, and on 8 May 2024. the EU DSO Entity and ENTSO-E submitted the NC DR proposal to ACER. In accordance with the legislative procedure, ACER will study the NC DR proposal, hold a public consultation and submit the final NC DR proposal to the European Commission.