Common use of Sharing of reserve capacity Clause in Contracts

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure 1). Without the sharing of reserve capacity, the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 shows references to the limits for sharing FCR and FRR. Table 4: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 See section 9.4.6 RR currently not applied in Nordic SA

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on d by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure Figure 1). Without the sharing of reserve capacity, capacity the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, result the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 6 shows references to the limits for sharing FCR and FRR. Table 46: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 9.4.2 See section 9.4.6 9.4.3 RR currently not applied in Nordic SASA 9.3 Roles & Responsibilities

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure 1). Without the sharing of reserve capacity, the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 shows references to the limits for sharing FCR and FRR. Table 4: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 See section 9.4.6 RR currently not applied in Nordic SASA 9.3 Roles & Responsibilities

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure Figure 1). Without the sharing of reserve capacity, capacity the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, result the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 6 shows references to the limits for sharing FCR and FRR. Table 46: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 9.4.2 See section 9.4.6 9.4.3 RR currently not applied in Nordic SASA 9.3 Roles & Responsibilities

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure 1). Without the sharing of reserve capacity, capacity the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, result the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 shows references to the limits for sharing FCR and FRR. Table 4: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 9.4.2 See section 9.4.6 9.4.3 RR currently not applied in Nordic SA

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure 1). Without the sharing of reserve capacity, the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 shows references to the limits for sharing FCR and FRR. Table 4: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 9.4.2 See section 9.4.6 9.4.3 RR currently not applied in Nordic SA

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on d by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure Figure 1). Without the sharing of reserve capacity, capacity the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, result the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 6 shows references to the limits for sharing FCR and FRR. Table 46: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 9.4.2 See section 9.4.6 9.4.3 RR currently not applied in Nordic SASA 9.3 Roles & Responsibilities 9.3.1 53BIntroduction Sharing of reserve capacity is a concept which allows a TSO to take a cross- border activation process into account while organising the availability of the required active power reserves. This means that sharing of reserve capacity cannot be technically linked to a specific reserve providing unit or a reserve providing group. Generally speaking, sharing of reserve capacity provides a control capability offered by one TSO to another without ensuring the availability of additional corresponding reserve capacity. The exchange of reserves provides a control capability and additional corresponding reserve capacity at the same time. In order to define clear and consistent responsibilities for TSOs involved in exchange of reserves or sharing of reserves, the SOGL introduces the respective roles for the involved TSOs. These roles and their responsibilities are explained in this section. Note to this section: Since the Nordic synchronous area equals the Nordic LFC block (see section 4.2.2), exchange of FRR between a TSO within the Nordic LFC block and a TSO of another LFC block, implicitly means an exchange of FRR between TSOs of different synchronous areas. Similarly, the exchange of FRR between TSOs of different LFC blocks implicitly results in an exchange of FRR between TSOs of different synchronous areas. Furthermore, the roles and responsibilities of the TSOs are the same for exchanges of FRR between TSOs within the Nordic synchronous area / LFC block and for exchanges between one or more TSOs within the Nordic synchronous area and one or more TSOs in other synchronous areas / LFC blocks. Consequently, sections 9.3.1 to 9.3.6 below cover several SOGL articles at the same time.

Sharing of reserve capacity. The sharing of reserve capacity allows the TSOs to organise and to ensure the availability of reserve capacity resulting from FCR dimensioning (see chapter 6) and FRR dimensioning (see chapter 7), by relying on the same reserve capacity as relied on by a different TSO. Figure 2 illustrates the sharing of 100 MW of reserve capacity between the TSOs of Area A and the TSOs of Area B. Figure 2: Sharing of reserve capacity – simple example Suppose that the Dimensioning Rules for Area A and Area B result in the need of 300 MW FRR for Area A and 200 MW for Area B (same amounts as in Figure 1). Without the sharing of reserve capacity, the TSOs of Area A and Area B have to ensure the availability of respectively 300 MW and 200 MW. However, assuming that in some cases it might be very unlikely that both TSOs need to activate the full amount reserve capacity at the same time, the TSOs of Area A and Area B can ‘share’ part of their reserve capacity. In practice this means that the TSOs of Area B can make use of e.g. 100 MW of the reserve capacity of the TSOs in Area A. Such an arrangement can be unilateral (TSOs of Area B can make use of 100 MW of the reserve capacity of the TSOs in Area A but not vice versa) or bilateral (in which case the TSOs of Area A can also access 100 MW of the reserve capacity of the TSOs in Area B). As a result, the TSOs of Area A and Area B now need to ensure the availability of 300 MW and 100 MW. The TSOs of Area A now make 100 MW of their own reserve capacity also available to the TSOs of Area B. The total amount of the reserve capacity within the system is now 400 MW, whereas it was 500 MW without the sharing agreement (leading in this example to reduction of 100 MW of reserve capacity in the total system). In contrast to the exchange of reserve capacity which only changes the geographical distribution of reserve capacity, the sharing of reserve capacity changes the total amount of active power reserves in the synchronous area, with an impact on the geographical distribution as an additional implicit effect. The sharing agreement defines priority rights to the shared reserve capacity in the situation where both TSOs have a simultaneous need. Table 4 shows references to the limits for sharing FCR and FRR. Table 4: Sharing limits FCR FRR RR Within Nordic Synchronous areas Not allowed by SOGL No limits defined RR currently not applied in Nordic SA Between Synchronous areas See section 9.4.5 9.4.2 See section 9.4.6 9.4.3 RR currently not applied in Nordic SASA 9.3 Roles & Responsibilities