Definitions

The following definitions apply:

‘interconnector’ means a transmission line which crosses or spans a border between Member States and which connects the national transmission systems of the Member States;

‘regulatory authority’ means a regulatory authority designated by each Member State pursuant to Article 57(1) of Directive (EU) 2019/944;

‘cross-border flow’ means a physical flow of electricity on a transmission network of a Member State that results from the impact of the activity of producers, customers, or both, outside that Member State on its transmission network;

‘congestion’ means a situation in which all requests from market participants to trade between network areas cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows;

‘new interconnector’ means an interconnector not completed by 4 August 2003;

‘structural congestion’ means congestion in the transmission system that is capable of being unambiguously defined, is predictable, is geographically stable over time, and frequently reoccurs under normal electricity system conditions;

‘market operator’ means an entity that provides a service whereby the offers to sell electricity are matched with bids to buy electricity;

‘nominated electricity market operator’ or ‘NEMO’ means a market operator designated by the competent authority to carry out tasks related to single day-ahead or single intraday coupling;

‘value of lost load’ means an estimation in euro/MWh, of the maximum electricity price that customers are willing to pay to avoid an outage;

‘balancing’ means all actions and processes, in all timelines, through which transmission system operators ensure, in an ongoing manner, maintenance of the system frequency within a predefined stability range and compliance with the amount of reserves needed with respect to the required quality;

‘balancing energy’ means energy used by transmission system operators to carry out balancing;

‘balancing service provider’ means a market participant providing either or both balancing energy and balancing capacity to transmission system operators;

‘balancing capacity’ means a volume of capacity that a balancing service provider has agreed to hold and in respect to which the balancing service provider has agreed to submit bids for a corresponding volume of balancing energy to the transmission system operator for the duration of the contract;

‘balance responsible party’ means a market participant or its chosen representative responsible for its imbalances in the electricity market;

‘imbalance settlement period’ means the time unit for which the imbalance of the balance responsible parties is calculated;

‘imbalance price’ means the price, be it positive, zero or negative, in each imbalance settlement period for an imbalance in each direction;

‘imbalance price area’ means the area in which an imbalance price is calculated;

‘prequalification process’ means the process to verify the compliance of a provider of balancing capacity with the requirements set by the transmission system operators;

‘reserve capacity’ means the amount of frequency containment reserves, frequency restoration reserves or replacement reserves that needs to be available to the transmission system operator;

‘priority dispatch’ means, with regard to the self-dispatch model, the dispatch of power plants on the basis of criteria which are different from the economic order of bids and, with regard to the central dispatch model, the dispatch of power plants on the basis of criteria which are different from the economic order of bids and from network constraints, giving priority to the dispatch of particular generation technologies;

‘capacity calculation region’ means the geographic area in which the coordinated capacity calculation is applied;

‘capacity mechanism’ means a temporary measure to ensure the achievement of the necessary level of resource adequacy by remunerating resources for their availability, excluding measures relating to ancillary services or congestion management;

‘high-efficiency cogeneration’ means cogeneration which meets the criteria laid down in Annex II to Directive 2012/27/EU of the European Parliament and of the Council ( 16 ) ;

‘demonstration project’ means a project which demonstrates a technology as a first of its kind in the Union and represents a significant innovation that goes well beyond the state of the art;

‘market participant’ means a natural or legal person who buys, sells or generates electricity, who is engaged in aggregation or who is an operator of demand response or energy storage services, including through the placing of orders to trade, in one or more electricity markets, including in balancing energy markets;

‘redispatching’ means a measure, including curtailment, that is activated by one or more transmission system operators or distribution system operators by altering the generation, load pattern, or both, in order to change physical flows in the electricity system and relieve a physical congestion or otherwise ensure system security;

‘countertrading’ means a cross-zonal exchange initiated by system operators between two bidding zones to relieve physical congestion;

‘power-generating facility’ means a facility that converts primary energy into electrical energy and which consists of one or more power-generating modules connected to a network;

‘central dispatching model’ means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power-generating facilities and demand facilities, in reference to dispatchable facilities, are determined by a transmission system operator within an integrated scheduling process;

‘self-dispatch model’ means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power-generating facilities and demand facilities are determined by the scheduling agents of those facilities;

‘standard balancing product’ means a harmonised balancing product defined by all transmission system operators for the exchange of balancing services;

‘specific balancing product’ means a balancing product different from a standard balancing product;

‘delegated operator’ means an entity to whom specific tasks or obligations entrusted to a transmission system operator or nominated electricity market operator under this Regulation or other Union legal acts have been delegated by that transmission system operator or NEMO or have been assigned by a Member State or regulatory authority;

‘customer’ means a customer as defined in point (1) of Article 2 of Directive (EU) 2019/944;

‘final customer’ means final customer as defined in point (3) of Article 2 of Directive (EU) 2019/944;

‘wholesale customer’ means a wholesale customer as defined in point (2) of Article 2 of Directive (EU) 2019/944;

‘household customer’ means household customer as defined in point (4) of Article 2 of Directive (EU) 2019/944;

‘small enterprise’ means small enterprise as defined in point (7) of Article 2 of Directive (EU) 2019/944;

‘active customer’ means active customer as defined in point (8) of Article 2 of Directive (EU) 2019/944;

‘electricity markets’ means electricity markets as defined in point (9) of Article 2 of Directive (EU) 2019/944;

‘supply’ means supply as defined in point (12) of Article 2 of Directive (EU) 2019/944;

‘electricity supply contract’ means electricity supply contract as defined in point (13) of Article 2 of Directive (EU) 2019/944;

‘aggregation’ means aggregation as defined in point (18) of Article 2 of Directive (EU) 2019/944;

‘demand response’ means demand response as defined in point (20) of Article 2 of Directive (EU) 2019/944;

‘smart metering system’ means smart metering system as defined in point (23) of Article 2 of Directive (EU) 2019/944;

‘interoperability’ means interoperability as defined in point (24) of Article 2 of Directive (EU) 2019/944;

‘distribution’ means distribution as defined in point (28) of Article 2 of Directive (EU) 2019/944;

‘distribution system operator’ means distribution system operator as defined in point (29) of Article 2 of Directive (EU) 2019/944;

‘energy efficiency’ means energy efficiency as defined in point (30) of Article 2 of Directive (EU) 2019/944;

‘energy from renewable sources’ or ‘renewable energy’ means energy from renewable sources as defined in point (31) of Article 2 of Directive (EU) 2019/944;

‘distributed generation’ means distributed generation as defined in point (32) of Article 2 of Directive (EU) 2019/944;

‘transmission’ means transmission as defined in point (34) of Article 2 of Directive (EU) 2019/944;

‘transmission system operator’ means transmission system operator as defined in point (35) of Article 2 of Directive (EU) 2019/944;

‘system user’ means system user as defined in point (36) of Article 2 of Directive (EU) 2019/944;

‘generation’ means generation as defined in point (37) of Article 2 of Directive (EU) 2019/944;

‘producer’ means producer as defined in point (38) of Article 2 of Directive (EU) 2019/944;

‘interconnected system’ means interconnected system as defined in point (40) of Article 2 of Directive (EU) 2019/944;

‘small isolated system’ means small isolated system as defined in point (42) of Article 2 of Directive (EU) 2019/944;

‘small connected system’ means small connected system as defined in point (43) of Article 2 of Directive (EU) 2019/944;

‘ancillary service’ means ancillary service as defined in point (48) of Article 2 of Directive (EU) 2019/944;

‘non-frequency ancillary service’ means non-frequency ancillary service as defined in point (49) of Article 2 of Directive (EU) 2019/944;

‘energy storage’ means energy storage as defined in point (59) of Article 2 of Directive (EU) 2019/944;

‘regional coordination centre’ means regional coordination centre established pursuant to Article 35 of this Regulation;

‘wholesale energy market’ means wholesale energy market as defined in point (6) of Article 2 of Regulation (EU) No 1227/2011 of the European Parliament and of the Council ( 17 ) ;

‘bidding zone’ means the largest geographical area within which market participants are able to exchange energy without capacity allocation;

‘capacity allocation’ means the attribution of cross-zonal capacity;

‘control area’ means a coherent part of the interconnected system, operated by a single system operator and shall include connected physical loads and/or generation units if any;

‘coordinated net transmission capacity’ means a capacity calculation method based on the principle of assessing and defining ex ante a maximum energy exchange between adjacent bidding zones;

‘critical network element’ means a network element either within a bidding zone or between bidding zones taken into account in the capacity calculation process, limiting the amount of power that can be exchanged;

‘cross-zonal capacity’ means the capability of the interconnected system to accommodate energy transfer between bidding zones;

‘generation unit’ means a single electricity generator belonging to a production unit.

CHAPTER II

GENERAL RULES FOR THE ELECTRICITY MARKET

REGULATION (EU) 2019/943 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 5 June 2019 on the internal market for electricity (recast) ANNEX I ANNEX II ANNEX III