ANNUAL WORK PROGRAMME 2022 - ENTSOG
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TABLE OF CONTENTS 1 INTRODUCTION������������������������������������������������������������������������������������������������������������������������������������� 5 1.1 Summary of ENTSOG’s activities in 2022����������������������������������������������������������������������������������������� 6 2 NETWORK CODES AND GUIDELINES����������������������������������������������������������������������������������������������� 11 2.1 Capacity Allocation Mechanisms Network Code ����������������������������������������������������������������������������11 2.2 Balancing Network Code�������������������������������������������������������������������������������������������������������������������13 2.3 Tariff Network Code����������������������������������������������������������������������������������������������������������������������������14 2.4 Interoperability and Data Exchange Network Code�������������������������������������������������������������������������16 2.5 Congestion Management Procedures Guidelines ���������������������������������������������������������������������������19 2.6 Transparency Guidelines��������������������������������������������������������������������������������������������������������������������20 2.7 Functionality Process�������������������������������������������������������������������������������������������������������������������������22 2.8 Supporting Activities��������������������������������������������������������������������������������������������������������������������������23 3 SCENARIOS AND INFRASTRUCTURE����������������������������������������������������������������������������������������������� 25 3.1 Objectives�������������������������������������������������������������������������������������������������������������������������������������������25 3.2 Key Deliverables and Activities����������������������������������������������������������������������������������������������������������26 3.3 Supporting Activities��������������������������������������������������������������������������������������������������������������������������28 3.4 Programme of Activities���������������������������������������������������������������������������������������������������������������������29 4 SECURITY OF SUPPLY������������������������������������������������������������������������������������������������������������������������ 31 4.1 Objectives�������������������������������������������������������������������������������������������������������������������������������������������31 4.2 Key Deliverables and Activities����������������������������������������������������������������������������������������������������������31 4.3 Supporting Activities��������������������������������������������������������������������������������������������������������������������������34 4.4 Programme of Activities���������������������������������������������������������������������������������������������������������������������35 5 ENERGY TRANSITION������������������������������������������������������������������������������������������������������������������������� 37 5.1 Objectives�������������������������������������������������������������������������������������������������������������������������������������������38 5.2 Key Activities and Deliverables ���������������������������������������������������������������������������������������������������������38 5.3 Programme of Activities���������������������������������������������������������������������������������������������������������������������39 6 RESEARCH & DEVELOPMENT����������������������������������������������������������������������������������������������������������� 41 6.1 Objectives�������������������������������������������������������������������������������������������������������������������������������������������41 6.2 Key Deliverables and Activities����������������������������������������������������������������������������������������������������������41 6.3 Programme of Activities���������������������������������������������������������������������������������������������������������������������43 7 ENTSOG SUPPORTING ACTIVITIES�������������������������������������������������������������������������������������������������� 45 7.1 Objectives�������������������������������������������������������������������������������������������������������������������������������������������45 7.2 Key Deliverables and Activities����������������������������������������������������������������������������������������������������������45 8 ANNEX: OVERVIEW OF ENTSOG’S REGULATORY FRAMEWORK FOR ITS TASKS����������������������� 49 9 ABBREVIATIONS��������������������������������������������������������������������������������������������������������������������������������� 53 10 ADDITIONAL NOTE����������������������������������������������������������������������������������������������������������������������������� 54 11 IMPRINT����������������������������������������������������������������������������������������������������������������������������������������������� 54
1 INTRODUCTION ENTSOG was created in December 2009 as part of the implementation of the European Union’s Third Energy Package. This document represents the 2022 edition of the Annual Work Programme (AWP), as required by Regulation (EC) 715 / 2009. An Annex has been included to provide an overview on the legal basis for ENTSOG’s primary tasks. ENTSOG’s main tasks include monitoring Network In 2022, ENTSOG will contribute to the Madrid Code implementation, development of its Ten-Year Forum and Copenhagen Energy Infrastructure Network Development Plans (TYNDP) – in coopera- Forum, both hosted by the EC. The Madrid Forum tion with ENTSO-E – and Summer and Winter Sup- addresses topics such as the implementation of the ply Outlook reports, transparency, and coordination network codes and the cross-border trade of gas, of network operations under normal and emergen- while the Copenhagen Energy Infrastructure Forum cy conditions. In addition, ENTSOG also addresses addresses the different aspects of infrastructure upcoming objectives resulting from EU energy and planning and development for both electricity and climate policy. The ENTSOG team will continue to gas. ENTSOG will also continue to participate in the work to strengthen the synergies between the gas EC’s Implementation and Monitoring Group, which and electricity sectors, and those between natural addresses high level issues in relation to implemen- gas and low carbon gases – including hydrogen – tation and monitoring of network codes effects for to facilitate energy flexibility, storage, international both gas and electricity. transportation capacity and security of supply. In the aftermath of Brexit, it has been agreed with ENTSOG and its Members will actively participate the EC that a special framework of cooperation in the discussions on, and the development of, the is established between ENTSOG and the UK gas upcoming energy and climate legislative proposals TSOs. It is proposed this takes the form of a ‘EU-UK as part of the European Green Deal, in particular the Gas TSOs Task Force’, and ad hoc participation by ‘Fit for 55’ regulatory package. ENTSOG will work UK TSOs at ENTSOG Working Group meetings, on strategic topics, specifically those required to as required. The areas for cooperation between facilitate gas grids’ constructive role in the energy ENTSOG and UK TSOs in 2022 include topics such transition, e. g., the repurposing, retrofitting and as gas markets, access to networks, security of gas refurbishment of the gas grids for the transport supply, infrastructure planning, offshore energy, of hydrogen. ENTSOG will continue to contribute and efficient use of gas interconnectors. to the development of new legislation that follows And finally, ENTSOG will continue its work as a Pro- the EU Energy System Integration and Hydrogen active, Trusted Adviser on gas transmission related Strategy, the reopening of the TEN-E framework, topics on a European level in 2022 and beyond, to and the upcoming Hydrogen and Gas Markets support the achievement of the EU goals of com- Decarbonisation package. ENTSOG will continue petitiveness, security of supply and sustainability. to work on the principles outlined in the ENTSOG ENTSOG also recognises the role it can play in the 2050 Roadmap for Gas Grids and in its Roadmap EU’s recovery plan, post the COVID-19 pandemic, Action Plan, promoting gas TSOs’ cooperation and in securing the uninterrupted energy delivery, but providing contributions to the EU decarbonisation also by integrating TSOs’ activities related to Ener- and energy system integration agenda. gy Transition and grids readiness for renewable As for previous years, and to continuously improve and low carbon gases. The structure of ENTSOG its way of working and developing its relations with with the embedded expertise of its members, as key stakeholders, ENTSOG will continue with reg- well as of its Brussels office, will continue to play a ular engagement with European Commission (EC), pivotal role in the further development of the Euro- ACER, stakeholders and ENTSOG’s members to pean gas markets, hydrogen agenda, and the future ensure a constructive and effective mutual dialogue. of gas grids. ENTSOG Annual Work Programme 2022 | 5
1.1 SUMMARY OF ENTSOG’S ACTIVITIES IN 2022 ENTSOG’s main activities can be described using Data Exchange Network Code (INT NC) – these the following four headings: are addressed in Section 2 of this document. The \ Networks Codes and Guidelines (Section 2) joint activity of managing the Functionality Process with ACER and Transparency Guidelines (including \ Scenarios and Infrastructure (Section 3) REMIT) are also included in Section 2. A summary \ Security of Supply (Section 4) of regulatory references for these are included in \ Energy Transition (Section 5) the Annex – Section 8. The AWP had previously focused on the develop- The activities associated with the other topics listed ment process of the Third Energy Package network above are described in Sections 3 to 5. Research codes, a cornerstone of the organisation’s activities, and Development activities undertaken by ENTSOG and this will continue with support to processes are described in Section 6. Details on ENTSOG’s associated with the implementation activities. internal supporting organisation are provided in Sections 7 of this document. Going forward, ENTSOG’s efforts will be on contin- ued monitoring of the implementation and effects Each topic in Section 2 – 6 includes objectives, key of the Congestion Management Procedure (CMP) deliverables and activities and a programme of Guidelines, Capacity Allocation Mechanisms activities for 2021. ENTSOG’s key work areas and Network Code (CAM NC), Tariff Network Code deliverables are highlighted in Sections 1.1.1 to 1.1.6 (TAR NC), Balancing Network Code (BAL NC) below and summarised in the ‘Programme of Activ- and implementation of the Interoperability and ities’ tables in each section. 1.1.1 NETWORK CODES AND GUIDELINES ENTSOG will continue in 2022 to provide help and management of the transparency and reporting support to its Members and other interested parties obligations including TSOs’ publications on their on Network Code and Guideline related topics and websites, on the ENTSOG Transparency Platform will continue with monitoring activities. ENTSOG will (TP) and data reporting to ACER REMIT Information work with ACER in providing joint solutions to issues System (ARIS). From a TP perspective, work will be posted by the stakeholders on the Gas Network undertaken to analyse stakeholder feedback and Codes Functionality Platform. implement new functionalities on the Platform that Interoperability work in 2022 includes the devel- will improve the usability and user-friendliness of opment, support, and maintenance of Common the published data. ENTSOG and its TSO members N etwork Operation Tools (CNOTs) for data will continue their efforts to improve data quality exchange. ENTSOG will continue to work in close and completeness and delivering on their REMIT cooperation with ACER, EC, Energy Community, obligations. Additional support will be provided to EASEE-gas and other stakeholders on all matters the TSOs from Energy Community Contracting relating to Network Code and Guidelines. Parties as they advance their efforts on transparen- cy publications, including potential publication on Activities undertaken for the Transparency ENTSOG’s TP. Guidelines and REMIT topics relate mainly to the 6 | ENTSOG Annual Work Programme 2022
Picture courtesy of Enagás 1.1.2 SCENARIOS AND INFRASTRUCTURE For the first time, in TYNDP 2020, ENTSOG has col- the Infrastructure Report, System Assessment and lected ETR (Energy Transition) projects, represent- Project Specific Cost Benefit Analysis (PS-CBA), ing approximately 28 % of the projects submitted to among other supporting documentation, as part TYDNP. ENTSOG has already started working, which of the draft TYNDP 2022. The draft TYNDP will be will continue in 2022, on a more detailed and refined publicly consulted and presented during a public project categorisation to be applied to all TYNDP workshop aimed at collecting feedback, to facilitate 2022 projects relevant for the energy transition improved involvement and transparency. ENTSOG and to meet the decarbonisation targets. ENTSOG will submit the draft TYNDP 2022 to ACER in the will also adapt the TYNDP assessment approach to second half of 2022. The timing of the final publi- the new project categories, with particular focus on cation will depend on the engagement with external renewable / low-carbon-related infrastructures and stakeholders (ENTSO-E, ACER and European Com- hydrogen-related infrastructures. mission and others). ENTSOG and ENTSO-E plan to publish their joint Depending on the date of the final publication of final TYNDP 2022 Scenario Report in Q1 2022, and the TYNDP 2022 scenario report, ENTSOG and both will work further on the adapted version of the ENTSO-E plan to start the scenario building process Interlinked Model. In 2022, ENTSOG will work on for the TYNDP 2024 in Q1 2022. 1.1.3 SECURITY OF SUPPLY ENTSOG continues its assessment of the European work is also expected in assisting the Energy Com- security of supply, through preparation of deliver- munity Secretariat and Contracting Parties in Net- ables Summer Supply Outlook 2022 and Sum- work Code implementation workshops and queries. mer 2021 Review and the Winter Supply Outlook ENTSOG will monitor the use of the CNOTs for 2022 – 2023 and Winter 2021 – 2022 Review. emergency conditions, as adopted by ACER in ENTSOG will undertake work on facilitating the 2019 – along with the evolution of operational pro- existing Regional Coordination System for Gas cesses and needs – and will revise them if needed. (ReCo System for Gas) as a CNOT for emergency Finally, taking into account that most EU Member conditions and the common incidents classification States import natural gas from non-EU countries scale. ENTSOG will continue to support the EC and and that a very large share of those imports orig- the Gas Coordination Group (GCG) in implementing inates from or crosses third countries to the EU, the revised Security of Supply Regulation, in par- ENTSOG will further strengthen the cooperation ticular by assisting, if requested, in preparing and between EU TSOs and third-country TSOs that play implementing solidarity principles, regional emer- an important role in EU gas supplies and contribute gency plans, and preventative action plans. Further to the preparedness for emergencies. ENTSOG Annual Work Programme 2022 | 7
Picture courtesy of Enagás 1.1.4 ENERGY TRANSITION ENTSOG will in 2022 continue to participate in and the principles developed under its 2050 Roadmap contribute to the realisation of European Green for Gas Grids and its Action Plan, specifically and Deal, including legislative initiatives within the ‘Fit actively communicating through the channels for 55‘ package. ENTSOG will in particular focus on established therein. identified strategic topics such as Energy System ENTSOG will continue to engage with stakeholders Integration, development of the Hydrogen and Gas along the whole value-chain via: Market Decarbonisation package, revision of the Renewable Energy Directive (RED II), the future role \ Advisory Panel for Future Gas Grids of the gas TSOs, guarantees of origin / certificates, \ Prime Mover Group on Gas Quality and Hydro- TENE Regulation reopening, gas quality and hydro- gen Handling 1 gen transport and handling, methane emissions, \ Prime Mover Group on Guarantees of Origin cybersecurity and regional cooperation. \ European Clean Hydrogen Alliance Round- On these topics, ENTSOG will consider any appli- table on Clean Hydrogen Transmission and cable initiatives and proposals published by the Distribution EC, ACER or other relevant stakeholders, as well as liaise internally with different working groups \ Participate in Strategic Energy Technology and task forces. ENTSOG will continue working on (SET) Plan, Action 6 IWG on Energy Efficiency in Industry. 1 Depending on topic-related developments, the engagement could take place either via the continuation of the dedicated Prime Movers’ Group on Gas Quality and Hydrogen Handling or stakeholder workshops. 8 | ENTSOG Annual Work Programme 2022
1.1.5 MANAGEMENT SUPPORT In 2022, the ENTSOG Management Support team laboration with the Energy Community. Additionally, will continue to work with the Business Areas and the Management Support team will facilitate the management in Brussels, and with ENTSOG mem- new framework for cooperation between ENTSOG bers. Support will be through the Admin, Legal and and the UK TSOs in 2022. The Management Sup- Corporate Affairs, HR, Finance, and IT functions, to port team also, along with ENTSOG Business Area ensure there is a robust platform for ENTSOG activ- Directors, prepare ENTSOG’s contribution to the ities and deliverables. EC’s Network Codes Implementation and Monitor- The Management Support team is responsible for ing Group meetings. the meetings of the General Assembly and the Man- The Annual Report and AWP are the result of com- agement Board as well as coordinating ENTSOG bined efforts from the entire ENTSOG team – the publications, e. g., Annual Report and Annual Work Annual Report assesses ENTSOG’s work and Programme (AWP). In addition, the activities of the achievements retrospectively for each given year. Liaison Group, the Legal Advisory Group and the The ENTSOG AWP contains the expected activi- Financial Committee are organised by the Man- ties for ENTSOG in the upcoming year, taking into agement Support team along with the activities of account ACER’s opinions on ENTSOG’s work and the External Contact Platform (open to non-EU Gas allowing the interested stakeholders to prepare their transmission companies), which was created in col- activities vis-à-vis ENTSOG. ENTSOG Annual Work Programme 2022 | 9
2 NETWORK CODES AND GUIDELINES EC Regulation 715 / 2009 requires European-wide Network Codes and Guide- lines to be developed by ENTSOG to harmonise the applicable rules aimed at facilitating market integration. The currently foreseen codes and guidelines have cific legislative developments arising from the Euro- been developed. ENTSOG is required to monitor pean Commission’s ‘Fit for 55’ legislative package. the implementation of the Network Codes and the In relation to transparency, specific obligations for Guidelines and their effect on the harmonisation of gas TSOs have been introduced through Regulation applicable rules aimed at facilitating market inte- (EC) No 715 / 2009, defining the basic transparency gration, which will continue in 2022 and beyond. rules further specified in Chapter 3 of Annex I (and ENTSOG will also continue to actively participate in its amendments). Reporting obligations have been the further development of the Network Codes and added following the REMIT regulation including its the Guidelines through the Functionality Process as Implementing Acts. ENTSOG will also continue to well as the formal regulatory amendment process, as deliver on these requirements and implement nec- required. Additionally, ENTSOG will consider any spe- essary updates. 2.1 CAPACITY ALLOCATION MECHANISMS NETWORK CODE The CAM NC sets up capacity allocation mecha- anteeing a European-wide harmonised procedure. nisms for existing and incremental capacity and It contains provisions for a capacity conversion how adjacent TSOs cooperate to facilitate capacity service of unbundled capacity products as well as sales, having regard to general commercial as well for harmonising the main terms and conditions as technical rules related to capacity allocation for bundled capacity products. New requirements mechanisms. for offering interruptible capacity and new auction The amended CAM NC entered into force as Regu- dates and rules for long-term capacity products are lation (EC) 2017 / 459 on 6 April 2017 and repealed also introduced. the previous Regulation (EC) 984 / 2013. In 2022, ENTSOG will continue to support the The amended CAM NC includes rules for deter- implementation of the CAM NC by providing mining and marketing incremental capacity guar- members and stakeholders advice and guidance throughout the implementation process. 2.1.1 OBJECTIVES \ To support the implementation and applica- \ To facilitate activities and provide expert knowl- tion of CAM NC. edge and guidance to stakeholders related \ To monitor and analyse the implementation of to capacity. the CAM NC and its effect on the harmonisation \ To respond to CAM NC-related issues raised of applicable rules aimed at facilitating market on the Functionality Platform, working in close integration. dialogue with stakeholders. \ To monitor the incremental capacity process \ To support and assist in the implementation initiated in 2021 according to Chapter V of the of the CAM NC in terms of Regulation inter- CAM NC and provide support to members pretation by relevant EU bodies as well as via throughout the different steps of this pro- knowledge sharing and good practices dis- cess, as well as the one that will be initiated semination, including assistance to the Energy in 2023 immediately following the annual Community in implementing the CAM NC. yearly auctions. \ To develop documents / solutions stemming from obligations on ENTSOG outlined in the CAM NC (including the auction calendar). ENTSOG Annual Work Programme 2022 | 11
2.1.2 KEY ACTIVITIES AND DELIVERABLES \ Commence work on the CAM NC Implemen- \ Update of Business Requirements Specification tation and Effect Monitoring Report to be (BRS) CAM if requested by TSO / Stakeholders. published in 2023. \ Monitor the progress of the third incremental \ CAM NC Auction Calendar. capacity process and support members \ Issue solutions delivery from the joint ACER throughout the different steps of this process. and ENTSOG functionality process involving \ Developing ENTSOG positions on capacity stakeholders. related issues including responses to public consultations and ACER reports. 2.1.3 PROGRAMME OF ACTIVITIES The following table shows the expected timeline and key activities on CAM NC related issues: 2022 CAM NC J F M A M J J A S O N D CAM NC auction calendar Prepare for CAM NC monitoring report 2021 – 2022 (implementation & e ffect) to be delivered in 2023 Incremental Capacity Process – support of TSOs with the incremental capacity process and analysis and elaboration of a report covering the process initiated in 2021 Analyses of ACER reports and other capacity relevant reports Monitor the activities and develop ENTSOG positions on capacity relevant issues incl. responses on public consultations Support of Energy community in implementing CAM NC and CMP GL Functionality Process for CAM NC CAM BRS update (if requested by TSO / Stakeholders) Activity periods Key deliverables available to external stakeholders Undetermined workload * The CAM NC does not stipulate a fix date for which ENTSOG should produce and publish a report on the analysis of the implementation and effect of the CAM NC in 2023. Article 38 (1) of the CAM NC only refers to the first date in which ENTSOG had to submit information to ACER “In particular, ENTSOG shall ensure the completeness and correctness of all relevant information from transmission system operators. ENTSOG shall submit to the Agency that information by 31 March 2019”. Therefore, the publication date in 2023 may change subject to the draft process and discussions within ENTSOG’s competent decision-making bodies. 12 | ENTSOG Annual Work Programme 2022
2.2 BALANCING NETWORK CODE The BAL NC applies to balancing zones within the NRA and provided that no interim measures were borders of the EU. It establishes rules for natural applied. As a third option, the BAL NC allowed TSOs gas balancing, including network-related rules on to apply interim measures according to Articles nomination procedures, imbalance charges, set- 45 – 50 in the absence of sufficient liquidity on the tlement processes associated with daily imbalance short-term wholesale market and upon approval by charges and provisions on operational balancing. the NRA. Article 45(4) set April 2019 as the deadline The BAL NC was published in the Official Journal of for the termination of interim measures. the European Union on 26 March 2014. The code In 2022, ENTSOG will continue to support the entered into force on 16 April 2014 with a first imple- implementation of the BAL NC by providing mentation deadline of 1 October 2015. However, members and stakeholders advice and guidance according to Article 52(1), the application could be throughout the implementation process and any postponed until 1 October 2016, if approved by the other related topics. 2.2.1 OBJECTIVES \ To support the implementation and application \ To support and assist in the implementation of the BAL NC. of the BAL NC in terms of Regulation inter- \ To publish the 2021 BAL NC Implementation pretation by relevant EU bodies as well as via and Effect Monitoring Report, giving particular knowledge sharing and good practices dis- focus on the countries where the implementa- semination, including assistance to the Energy tion of the BAL NC is still ongoing. Community in implementing the BAL NC. \ To facilitate activities and provide expert knowl- \ To coordinate with ACER on data exchange and edge and guidance to stakeholders related information sharing to monitor the effective to balancing. implementation of the BAL NC. \ To respond to BAL NC-related issues raised on the Functionality Platform, working in close dialogue with stakeholders. 2.2.2 KEY ACTIVITIES AND DELIVERABLES \ Publish the 2021 BAL NC Implementation and \ Update of Business Requirements Specifica- Effect Monitoring Report. tion (BRS) for Balancing processes if requested \ Issue solutions delivery from the joint ACER by TSO / Stakeholders. and ENTSOG functionality process involving \ Developing ENTSOG positions on balancing stakeholders. related issues including responses to public consultations and ACER reports. ENTSOG Annual Work Programme 2022 | 13
2.2.3 PROGRAMME OF ACTIVITIES The following table shows the expected timeline and key activities on BAL NC related issues: 2022 Balancing NC J F M A M J J A S O N D Publication of 2021 BAL NC monitoring report (implementation & effect) Support and assistance of TSOs in the implementation of the BAL NC Analyses of ACER reports (implementation / effect monitoring, market moni- toring) and other BAL relevant reports Monitor activities and develop ENTSOG positions on balancing relevant issues incl. responses on public consultations and ACER reports Support of Energy Community in implementing BAL NC Functionality Process for BAL NC Activity periods Key deliverables available to external stakeholders Undetermined workload 2.3 TARIFF NETWORK CODE The TAR NC on rules regarding harmonised trans- and its improvement, reflect the actual cost mission tariff structures for gas was published in the incurred, are non-discriminatory, facilitate efficient Official Journal of the European Union on 17 March gas trade and competition, avoid cross-subsidies 2017 and entered into force on the 6 April 2017. The between network users, and provide incentives application of the TAR NC was over three dates: 6 for investment. April 2017 (chapters I, V, VII, IX, X); 1 October 2017 In 2022, ENTSOG will continue to support the (chapters VI, VIII); 31 May 2019 (chapters II, III, IV). ongoing implementation and monitoring of the TAR The TAR NC contributes to achieving tariffs, or NC by providing members and stakeholders with methodologies used to calculate them, which are advice and guidance throughout the implementa- transparent, consider the need for system integrity tion process. 2.3.1 OBJECTIVES \ To support the implementation and application \ To support and assist in the implementation of the TAR NC. of the TAR NC in terms of Regulation inter- \ To publish the 2021 TAR NC Implementation pretation by relevant EU bodies as well as via and Effect Monitoring Report, in order to assess knowledge sharing and good practices dis- the ongoing application of the TAR NC in the EU. semination, including assistance to the Energy Community in implementing the TAR NC. \ To facilitate activities and provide expert knowledge and guidance to stakeholders relat- \ To develop documents / solutions stemming ed to tariffs. from obligations on ENTSOG outlined in the TAR NC (for example regarding transparency \ To respond to TAR NC-related issues raised requirements). on the Functionality Platform, working in close dialogue with stakeholders. 14 | ENTSOG Annual Work Programme 2022
Picture courtesy of Gasgrid Finland 2.3.2 KEY ACTIVITIES AND DELIVERABLES \ Publish the 2021 TAR NC Implementation and \ Develop ENTSOG positions on tariff-related Effect Monitoring Report. issues including responses to public consulta- \ Issue solutions delivery from the joint ACER tions and ACER reports. and ENTSOG functionality process involving stakeholders. 2.3.3 PROGRAMME OF ACTIVITIES The following table shows the expected timeline and key activities on Tariff NC related issues: 2022 Tariff NC J F M A M J J A S O N D Publication of 2021 TAR NC monitoring report (implementation & effect) Support and assistance of TSOs in the implementation of the TAR NC Analyses of ACER reports (implementation / effect monitoring, allowed / target revenue, market monitoring) and other TAR relevant reports Monitor the activities and develop ENTSOG positions on tariff-relevant issues incl. responses on public consultations Support of Energy Community in implementing TAR NC Functionality Process for TAR NC Activity periods Key deliverables available to external stakeholders Undetermined workload ENTSOG Annual Work Programme 2022 | 15
2.4 INTEROPERABILITY AND DATA EXCHANGE NETWORK CODE Commission Regulation (EU) 2015 / 703 estab- sary harmonisation in those areas, therefore lead- lished a network code on interoperability and data ing to effective market integration. For that purpose exchange rules in 2015. and for facilitating cooperation between adjacent An appropriate degree of harmonisation in techni- transmission system operators, ENTSOG provides cal, operational and communication areas is key to assistance for the harmonised implementation of overcome potential barriers to the free flow of gas in the INT NC and develops and maintains CNOTs for the European Union. The INT NC enables the neces- the technical implementation of Network Codes and Guidelines. 2.4.1 OBJECTIVES \ To support the implementation and application \ To facilitate and support coordination of techni- of the Network Code on Interoperability and cal cooperation between Member States, Ener- Data Exchange rules (INT NC). gy Community and third-country transmission \ To investigate the further steps of har- system operators (Art 8(3)c) Regulation (EC) monisation regarding common data No. 715 / 2009). exchange solutions. 2.4.2 KEY ACTIVITIES AND DELIVERABLES 2.4.2.1 Monitoring of the implementation and functioning of the Network Code on Interoperability and Data Exchange Rule: \ Publish the 2021 INT NC Implementation and \ Analyse any proposals arising from the Effect Monitoring Report. Functionality Process including validation, \ Review of selected Interconnection Points categorisation and prioritisation of the issues by ACER, to document detailed evidence of and develop proposals for improvement or Interconnection Agreements’ (IAs’) compli- amendment of the network codes or guidelines ance with the INT NC as a complementary together with other ENTSOG business areas as part of the Implementation Monitoring Report. well as with ACER and relevant stakeholders. The results of the IMR will be considered as an \ Possible amendment of the INT NC in order to input for a dialogue on a possible amendment implement the agreed solution for the reported of the INT NC. FUNC issue (e. g. reported FUNC issue “Com- munication Protocol and encryption”) 2.4.2.2 Development, support and maintenance of common network operation tools (CNOTs) for data exchange: \ Monitor the implementation and functionality \ Organisation of a public stakeholder work- of published CNOTs for CAM / CMP and Nomi- shop related to the implementation of nations and matching procedures, including the CNOTs, if needed. related Business Requirement Specifications, \ Cooperation with EASEE-gas, CEF, ACER and Implementation Guidelines, and the technical other relevant stakeholders in the field of communication profiles for the selected com- data exchange. mon solutions for Data Exchange. \ Analyse any potential requests concerning Data Exchange harmonisation. 16 | ENTSOG Annual Work Programme 2022
2.4.2.3 Technical cooperation between Member States, Energy Community and third-country transmission system operators \ If required, update of recommendations transiting gas to EU (e. g., North African coun- relating to the coordination of technical tries, Russia, Turkey). The workshop is now cooperation between Member States, Energy planned for 2022. The goal of the workshop is Community and third-country transmission to discuss future steps for strengthening tech- system operators. nical cooperation. \ Support the TSOs of Member States, Energy \ Operate the Local Issuing Office for Energy Community and third countries in the imple- Identification Coding scheme mentation of the INT NC rules and expanding \ Management of EIC Codes requests and regional cooperation. updates from / to the Central Issuing Office \ Due to the COVID-19 pandemic situation (CIO / ENTSOE) and ENTSOG website ENTSOG could not launch the planned 2021 \ Cooperation with ENTSOE to further stream- workshop between EU TSOs and relevant line and standardise the implementation of the adjacent non-EU TSOs (parties acting as TSOs) scheme in the gas sector. from third countries which are supplying or 2.4.2.4 Gas Quality and Hydrogen handling \ Publish the fourth edition of the Gas Quality \ Monitoring standardisation activities regarding Outlook report for the TYNDP 2022. the injection of hydrogen into the gas grid \ Cooperation with CEN, particularly: through the CEN Sector Forum Energy Man- agement Working Group Hydrogen. − In the revision of the standard EN16726, including the normative work for including \ Cooperation with EASEE-gas, GERG, GIE, recommendations and considerations on Marcogaz, DSOs associations (CEDEC, Wobbe index aspects related to H-gas in the Eurogas, GEODE, GD4S) and other industry revision of the standard. organisations in the field of gas quality and hydrogen handling − Work related to the gas transmission net- work readiness to integrate hydrogen and \ Informing and engaging with stakeholders other renewable and decarbonised gases. either via the continuation of the dedicated Prime Movers’ Group on gas quality and hydro- − CEN SFGas GQS TF3 Oxygen2 and the devel- gen handling or stakeholder workshops. opment of the CEN standard on hydrogen specifications (Gas infrastructure – Quality of gas –Hydrogen used in converted / reded- icated gas systems)3. 2 CEN SFGas GQS TF3 Oxygen = CEN Sector Forum Gas, Gas Quality Study, Task Force 3 focused on Oxygen parameter. 3 The standard will define the quality of hydrogen, i. e., its parameters and limiting values, used within converted / rededicated European natural gas systems at the exit point to the end-user. ENTSOG Annual Work Programme 2022 | 17
2.4.3 PROGRAMME OF ACTIVITIES The following table shows the expected timeline and key activities on INT NC related issues: 2022 Interoperability and Data Exchange NC J F M A M J J A S O N D Prepare for the INT NC monitoring report update, to be delivered in 2022 considering the agreed main aspects agreed with ACER. Analyse ACER’s reports and opinions regarding the INT NC and relevant CNOTs Respond to queries and provide advice to TSOs and stakeholders on the INT NC and relevant CNOTs Support and assistance of TSOs and Energy Community in the implementa- tion of the INT NC and relevant CNOTs Update of CNOTs Functionality Process for the INT NC Data Exchange workshop CAM / CMP BRS update (if requested by TSO / Stakeholders) Nomination & Matching BRS update (if requested by TSO / Stakeholders) Workshop between EU TSOs and adjacent non-EU TSOs Management of EIC codes ENTSOG – GIE cooperation on EC’s Methane Emissions initiative. Cooperation with ENTSOE in terms of Cyber Security Continuation of the dialogue with stakeholders on European and national level in order to establish a common encryption method for AS4 Analysis of interoperability topics in relation to ENTSOG 2050 roadmap for Gas Grids Cooperation with stakeholders on Gas Quality and hydrogen handling (e. g., via prime movers’ group, stakeholder workshops) Cooperation with CEN in standardisation activities Organise a Workshop on Gas Quality & hydrogen handling Gas Quality Outlook 2022 Activity periods Key deliverables available to external stakeholders Undetermined workload 18 | ENTSOG Annual Work Programme 2022
2.5 CONGESTION MANAGEMENT PROCEDURES GUIDELINES The CMP GLs were developed by the European congestion and saturation points. They facilitate Commission in 2010 and 2011 and approved by the cross-border exchanges in natural gas on a non-dis- EU Gas Committee on 24 August 2012. The imple- criminatory basis. mentation date was 1 October 2013. In 2022, ENTSOG will continue to support the The CMP GLs help free up unused capacity with implementation of the CMP GLs by providing a view to optimal and maximum use of the tech- members and stakeholders advice and guidance nical capacity and the timely detection of future throughout the implementation process. 2.5.1 OBJECTIVES \ To support the implementation and application \ To respond to CMP GLs-related issues raised of the Congestion Management Procedures on the Functionality Platform, working in close Guidelines. dialogue with stakeholders. \ To monitor and analyse the implementation \ To support and assist in the implementation of the CMP GLs and its effect on the harmoni- of the CMP GLs in terms of Regulation inter- sation of applicable rules aimed at facilitating pretation by relevant EU bodies as well as via market integration. knowledge sharing and good practices dis- \ To facilitate activities and provide expert knowl- semination, including assistance to the Energy edge and guidance to stakeholders related to Community in implementing the CMP GLs. congestion management. 2.5.2 KEY ACTIVITIES AND DELIVERABLES \ Commence work on the CMP GL Implemen- \ Update of Business Requirements Specification tation and Effect Monitoring Report to be (BRS) CMP if requested by TSO / Stakeholders. published in 2023. \ Developing ENTSOG positions on congestion \ Issue solutions delivery from the joint ACER management related issues including respons- and ENTSOG Functionality Process involving es to public consultations and ACER reports. stakeholders. 2.5.3 PROGRAMME OF ACTIVITIES The following table shows the expected timeline and key activities on CMP related issues: 2022 CMP Guidelines J F M A M J J A S O N D Prepare for 2021 – 2022 CMP GL monitoring report (implementation & effect) to be delivered in 2023* Support and assistance of TSOs in the implementation of the CMP GL Analyses of ACER reports (Congestion at interconnection points, implementa- tion) and other contractual congestion relevant reports Monitor the activities and develop ENTSOG positions on contractual conges- tion relevant issues incl. responses on public consultations Functionality Process for CMP Activity periods Undetermined workload * The CMP GLs do not stipulate a date for which ENTSOG should produce and publish a report on the analysis of the implementation and effect of the CMP GLs in 2023. Therefore, the publication date in 2023 may change subject to the draft process and discussions within ENTSOG’s competent decision- making bodies. ENTSOG Annual Work Programme 2022 | 19
2.6 TRANSPARENCY GUIDELINES The energy market liberalisation process, aimed at ENTSOG activities on the Transparency topic relate securing a well-functioning, open and efficient inter- to management of the transparency obligations nal market in gas, has significantly changed the gas including TSOs’ publications on their websites transmission business and increased the need for and the Transparency Platform and Regulation on transparency. In this respect, specific obligations Energy Market Integrity and Transparency (REMIT). for gas TSOs have been introduced through Regu- Regulation (EU) No 1227 / 2011 (REMIT) and its lation (EC) No 715 / 2009, which defines the basic Commission Implementing Regulation (EU) No transparency rules, further specified in Chapter 3 1348 / 2014 introduced additional publication and of Annex I (and its amendments). reporting obligations to the market participants, The Network Codes have been developed to provide aimed at supporting market monitoring, fostering rules and procedures to reach an appropriate level open and fair competition in wholesale energy mar- of harmonisation towards efficient gas trading and kets. The REMIT obligations are also handled by the transport across gas transmission systems in the Transparency Team in ENTSOG. EU, increasing data publication requirements. 2.6.1 OBJECTIVES The objective of the Transparency activities in − Regulation (EC) No 715 / 2009 ENTSOG is to enhance the transparency of gas − Regulation (EU) No 1227 / 2011 TSOs’ activities in the European Union. This is realised by the data published on the Transpar- − Regulation (EU) No 1348 / 2014 ency Platform (TP) and the TSOs’ websites. The − Regulation (EU) 2015 / 703 requirements for the transparency publications are − Regulation (EU) 2017 / 459 specified in Regulation (EC) No 715 / 2009, REMIT and the Network Codes. The main objectives are to: − Regulation (EU) 2017 / 460 \ Further enhance ENTSOG Transparency Plat- − Regulation (EU) 2019 / 942 form with functionalities improving the usability \ Cooperate with other ENTSOG business areas and user-friendliness of the published data. to fulfil transparency requirements coming \ Monitor, analyse and apply the legal transpar- from relevant network codes and liaise with ency and reporting requirements coming from relevant ENTSOG WG to identify synergies in EU legislation such as fulfilling these obligations. Picture courtesy of Gasgrid Finland 20 | ENTSOG Annual Work Programme 2022
2.6.2 KEY ACTIVITIES AND DELIVERABLES In line with the Annual Work Programme 2021, \ Support TSOs in improving data completeness ENTSOG continues to update and improve the and consistency in line with legal obligations. ENTSOG Transparency Platform to the benefit \ As Registered Reporting Mechanism, continue of all users and stakeholders. The TP provides to provide aggregated fundamental data to the technical and commercial data on the TSOs’ trans- ARIS as defined in Article 9 (1) of Regulation mission-relevant points, showing all of them on an (EU) 1348 / 2014. interactive map, in charts, in tables, in downloads, as ‘Application Programming Interfaces’ (APIs). \ Follow-up on reporting and REMIT fees’ provi- Part of this information is also available via ‘Really sions as well as on data collection processes for Simple Syndication’ (RSS) web-feeds. The informa- TSOs and ENTSOG under REMIT obligations. In tion is available free of charge, provided by the TSOs. 2022, this could include activities to implement the updated electronic formats for REMIT ENTSOG continues to work closely with the TSOs to reporting, but this is subject to announcement apply the regulation provisions, including the trans- of timeline and readiness from ACER. parency requirements coming from the Network Codes and Guidelines, and REMIT \ Maintain, together with the gas TSOs, a close working relationship with ACER’s Market Integ- The following is a list of key activities and rity and Transparency department and support deliverables: bilateral effort in improving REMIT application. \ Strive to continue improving the user experi- This includes participation in ACER public ence with TP based on feedback from public consultations and surveys on REMIT as well workshops, the Functionality Platform, satis- as various stakeholder user groups managed faction surveys, and the TP Help Section. by the Agency, e. g., REMIT Expert Group, RRM \ Organise the workshop on transparency to User Group, and Roundtable for inside informa- receive feedback from stakeholders. tion disclosure. \ Evaluate the communication between ENTSOG \ Provide input on ENTSOG’s position about the and the TP users in terms of newsletters and publication provisions of the new regulatory announcements on the Platform. package, Smart Sector Integration, and prepa- ration to implement. 2.6.3 SUPPORTING ACTIVITIES \ Facilitate required data collection processes \ Continuous dialogue with other ENTSOG when required by the legislation, e. g., the working and kernel groups to provide support information for ACER’s 2022 Congestion Mon- for any ad hoc data requests for possible itoring Report. ACER monitoring or for research studies \ Support TSOs from Energy Community Con- within ENTSOG. tracting Parties on their ENTSOG TP transpar- \ Support the other ENTSOG working and kernel ency publications. groups on projects related to the usage of \ Support the Agency’s REMIT teams and ACER information provided by the TSOs in ENTSOG’s stakeholder user groups, e. g., REMIT Expert Professional Data Warehouse (PDWS). Group, RRM User Group, Roundtable for inside \ Support the Regional Coordination System for information disclosure etc., with input on the Gas (ReCo System for Gas). processes and practices on the EU gas market relevant for the REMIT implementation and developments. ENTSOG Annual Work Programme 2022 | 21
2.6.4 PROGRAMME OF ACTIVITIES The following table shows the expected timeline and key activities on Transparency Guidelines related issues: 2022 Transparency Guidelines J F M A M J J A S O N D Continuous Platform improvements. Activities on application of the transparency requirements coming from EU legislation Functionality Process for Transparency Guidelines Facilitate required data collection processes Support the TSOs from Energy Community CPs on REMIT and transparency topics Support ACER’s REMIT department Support to TSOs on data completeness Follow-up on REMIT requirements Cooperate with ENTSOG business areas on transparency requirements and support with projects concerning TP Stakeholder satisfaction survey Public workshop on Transparency Activity periods Key deliverables available to external stakeholders Undetermined workload 2.7 FUNCTIONALITY PROCESS The established Functionality Process, co-managed The central tool of the process is the Gas Network by ENTSOG and ACER and supported by the Euro- Codes Functionality Platform (www.gasncfunc.eu) pean Commission, is aimed at reaching commonly which was launched in February 2016. recommended solution(s) on implementation After an issue has been reported, ACER and and operational issues within the existing Gas ENTSOG will jointly validate, categorise, and prior- Network Codes and Guidelines which already itise the raised issues and produce solutions taking entered into force. into account stakeholders’ views.4 The process includes data collection, launch of public consulta- tions and analysis of results. 4 21 issues have been reported on the FUNC Platform, 18 out of these issues have been solved, closed, or withdrawn by the issue poster, 3 issues are currently open for joint assessment (Q3 2021). 22 | ENTSOG Annual Work Programme 2022
2.7.1 OBJECTIVES ACER and ENTSOG provide stakeholders a platform provide an opportunity to be involved in developing to raise and discuss implementation and opera- solutions, which, at the end of the process, will aim tional Network Codes and Guidelines issues and at commonly recommended non-binding guidance. 2.7.2 KEY ACTIVITIES AND DELIVERABLES In 2022, it is anticipated that ENTSOG will provide In July 2020 an updated version of the FUNC further joint ACER and ENTSOG solutions to issues Platform was launched, aimed at making the Func- posted by the stakeholders on the Functional- tionality Process more efficient, transparent, and ity Platform. easier to use for the involved stakeholders. Some follow-up tasks to this update are anticipated to take place also in 2022, as well as improvements to the Cooperation Guidelines between ACER and ENTSOG. 2.7.3 PROGRAMME OF ACTIVITIES The following table shows expected timeline and key activities on the Functionality Process: 2022 Functionality Process J F M A M J J A S O N D Develop and publish issue solutions Process improvement Activity periods 2.8 SUPPORTING ACTIVITIES 2.8.1 IMPLEMENTATION AND MONITORING NETWORK CODE GROUP The Network Code Implementation and Monitoring ENTSOG has been among the founding members Group (NC IMG) is a forum for high level strategic of the group and is represented at every meeting coordination between the European Commission, to report the progress made in NC implementation the Agency for the Cooperation of Energy Regula- as well as to discuss the strategic issues related to tors (ACER), the European Network of Transmission codes and guidelines effects. It is also the forum at System Operators for Electricity (ENTSO-E), and which the issues related to codes and guidelines the European Network of Transmission System can be effectively discussed and solved in a coordi- Operators for Gas (ENTSOG). nated manner between the ENTSOs, the Regulators The NC IMG oversees the implementation and and the Commission. implementation monitoring of electricity network ENTSOG reports also on the stakeholders’ dialogue codes and gas network codes in the EU. framed by the Functionality Process. ENTSOG also The IMG for Network Codes was launched by the present the progress made in Transparency Plat- European Commission on 3 May 2017 at the event form development. celebrating the legal endorsement of the last Network Code that both ENTSOG and ENTSO-E were tasked to deliver, as required by the Third Energy Package. ENTSOG Annual Work Programme 2022 | 23
Picture courtesy of Gaz-System
3 SCENARIOS AND INFRASTRUCTURE The deliverables and activities outlined in this Section reflect ENTSOG obliga- tions under Regulations (EC) 715 / 2009 (3rd Energy Package), (EU) 2017 / 1938 (Security of Supply), (EU) 347 / 2013 (Energy Infrastructure Guidelines) and EU 2015 / 703 (Interoperability & Data Exchange Network Code) and relate to scenario development, investment and infrastructure assessment for the EU energy system. One of ENTSOG’s main deliverables are short and medium to long-term assessments such as the Ten-Year Network Development Plan (TYNDP), the Union-wide network development plan. In addition, the ENTSOG maps show commitment to transparency and to providing stakeholders with easily accessible and high added value information. All these deliverables aim at developing a vision to two parallel subsequent processes, to which of the integrated European energy market and in ENTSOG provides its support: the development of particular its infrastructure component. This vision the Gas Regional Investment Plans (GRIPs) and is of particular importance in view of completing the Projects of Common Interest (PCI) selection the pillars of the European Energy Policy in the process. The overall TYNDP and subsequent pro- perspective of achieving the European energy and cesses take a total of four years and are repeated climate targets and European commitments to the every second year. Paris Agreement. It is important to note that in the context of the revi- The TYNDP development is a three-year process sion of the TEN-E regulation expected at the end of (even though published every second year), with 2021, the content and the timeline of the deliver- scenario development taking two years, and the ables are highly dependent on the new objectives infrastructure and project assessment taking an and the governance process to be set out in the additional year. The TYNDP Scenarios are jointly revised regulation. At the draft phase of the AWP developed by ENTSOG and ENTSO-E following an 2022, it is not possible with certainty to plan for the extensive engagement and cooperation with exter- regulatory tasks under TEN-E. nal stakeholders. This process is the entry point 3.1 OBJECTIVES \ To meet expectations of market participants \ To support the Regional Groups, established by regarding the assessment of infrastructure-re- the EC, in the process of selection of PCIs by lated market integration and its contribution providing the technical background and meth- to meeting the pillars of the European Energy odologies with regard to cost-benefit analysis Policy (sustainability, competition and security of projects. of supply), as well as the assessment of the \ To provide support to institutions and European supply adequacy outlook through stakeholders in the understanding of gas modelling of the integrated network and devel- infrastructure. opment of supply and demand scenarios. \ To develop ENTSOG skills, methodologies and \ To support the investment process starting tools to sustain the achievement of the above from gap identification through to the coming objectives. on-stream of the respective infrastruc- ture solutions. ENTSOG Annual Work Programme 2022 | 25
3.2 KEY DELIVERABLES AND ACTIVITIES \ Publish final TYNDP 2022 Scenarios. \ Publish draft TYNDP 2022. \ Adaptation of Practical Implementation Docu- \ Adaptation of the current CBA Methodol- ment and Project Portal for TYNDP 2022. ogy application to TYNDP2022, and of the \ Support to PCI Project Collection and PCI internal network model, to include hydrogen Selection Process. infrastructure. \ System Development map 2021, to be pub- \ Adapting ENTSO-E / ENTSOG Consistent lished in 2022. and Interlinked Model for TYNDP 2022 and future editions. 3.2.1 METHODOLOGIES AND MODELLING: ENTSO-E / ENTSOG CONSISTENT AND INTERLINKED MODEL In line with Regulation (EU) 347 / 2013, the ENTSOs Building on the outcomes of the study, in 2020, have submitted the draft version of their consistent ENTSOG and ENTSO-E have started adapting their and interlinked electricity and gas network and Interlinked Model. A progress report on screening market model (the Interlinked Model) to the Com- and dual assessment was published in May 20216. mission and ACER on 21 December 2016, and ACER In 2021 and 2022, ENTSOG and ENTSO-E will fur- has issued its opinion on 20 March 2017. ther work on the adapted version of the Interlinked ENTSOG and ENTSO-E will continue their joint Model in view of its implementation in future TYNDP scenario building process with TYNDP 2022 and editions. ENTSO-E and ENTSOG will consider that subsequent TYNDP editions. The ENTSOs aim at any future improvements on the interlinked model further development of their methodologies to will require alignment with a revised TEN-E regu- build full-energy scenarios taking into account dif- lation, the draft regulation requiring ENTSO-E and ferent direct and indirect interlinkages such as gas ENTSOG to jointly submit by 31 December 2023 fired power generation, Power-to-Gas and hybrid to the EC and ACER a consistent and interlinked demand solutions. energy market and network model. This model The ENTSOs acknowledge that ACER Opinion5 would include electricity, gas and hydrogen trans- points at additional potential interlinkages that are mission infrastructure as well as storage, LNG and not part of the draft Interlinked Model as submitted electrolysers, covering the energy infrastructure in December 2016. In line with ACER suggestions, priority corridors and the areas defined in line with the ENTSOs launched on 17 May 2018 a focus study the principles outlined in Annex V of the revised on the interlinkages between gas and electricity TEN-E regulation. scenarios and projects assessment. 3.2.2 SCENARIOS FOR TYNDP 2022 The TYNDP 2022 Scenarios development process By the beginning of 2022, ENTSOG and ENTSO-E takes two years in total, starting in 2020. As part plan to have drafted, consulted and published the of the Interlinked Model, it will build on continu- drafted TYNDP 2022 Scenario report. These tasks ous cooperation between ENTSOG and ENTSO-E, include the quantification of demand and supply allowing for the evolution of policy and technology patterns for their scenarios: to be considered, and for the experience gained \ A joint data collection for bottom-up gas and from TYNDP 2020 and the joint focus study on the electricity data, interlinkages between gas and electricity sectors. In this regard, the ENTSOs will further develop \ Electricity market simulations, including major their methodology regarding the construction of improvements regarding sector coupling (such full-energy scenarios including aspects of sector as market integrated P2G) coupling such as hybrid demand solutions and Power-to-Gas. 5 https://documents.acer.europa.eu/Official_documents/Acts_of_the_Agency/Opinions/Opinions/ACER%20Opinion%2007-2017.pdf 6 https://www.entsog.eu/sites/default/files/2021-05/ILM%20Investigation%20Document.pdf 26 | ENTSOG Annual Work Programme 2022
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