1

TASK 2: “Consolidation of common

technical regulatory frameworks”

Activity 2: “Monitoring and Implementation

of the Guidelines for the Mediterranean
Grid Codes”

Interim report
2

Table of contents
List of abbreviations ........................................................................................................... 3
1 Purpose of the assignment ....................................................................................... 4
2 Purpose and structure of the document .................................................................. 4
3 Background on the work performed by Med-TSO since 2015 ................................. 4
4 Summary of work performed in task “TOWARDS A MEDITERRANEAN GRID CODE”
(MP1) .................................................................................................................................. 6
4.1 Starting Regulatory Framework (SRF) .................................................................. 7
4.1.1 Description .................................................................................................. 7
4.1.2 Main Outcomes......................................................................................... 10
4.2 Proposal of a Common Target Regulatory Framework (CTRF) .......................... 10
4.2.1 Description ................................................................................................ 10
4.2.2 Main Outcomes......................................................................................... 14
4.3 Proposal of a Common Tentative Road Map (CTRM) ........................................ 15
4.3.1 Description ................................................................................................ 15
4.3.2 Main Outcomes......................................................................................... 16
4.4 Models of Rules (Procedures/Contracts) ........................................................... 18
4.4.1 Description ................................................................................................ 18
4.4.2 Main Outcomes......................................................................................... 18
5 Summary of work performed in task “REGULATION AND RULES” (MP2) .............. 21
5.1 Proposal of Common Rules about the provision of system services ................. 21
5.1.1 Description ................................................................................................ 21
5.1.2 Main Outcomes......................................................................................... 22
5.2 Connection Procedure Proposal ........................................................................ 23
5.2.1 Description ................................................................................................ 23
5.2.2 Main Outcomes......................................................................................... 23
5.3 Candidates for Pilot Projects .............................................................................. 23
5.3.1 Description ................................................................................................ 23
5.3.2 Main Outcomes......................................................................................... 26
5.4 Proposal of tentative road map for a practical implementation of harmonised
rules in pilot project ..................................................................................................... 26
5.4.1 Description ................................................................................................ 26
5.4.2 Main Outcomes......................................................................................... 28
6 Conclusions and Next steps .................................................................................... 29
3

List of abbreviations
BRP Balance Responsible Party
BSP Balance Service Provider
CTRF Common Target Regulatory
Framework
CTRM Common Target Road Map
IEEZ Interconnected Electricity Exchanges
Zones
IME Interconnection Morocco-Spain
IMA Interconnection Morocco-Algeria
ITA Interconnection Tunisia-Algeria
GC RC Grid Code Requirement for
Connection
GC SO Grid Code for System Operation
MP 1 Mediterranean project 1
MP 2 Mediterranean project 2
SRF Starting Regulatory Framework
TEASIMED Towards an Efficient, Adequate,
Sustainable and Interconnected
MEDiterranean power system
COMELEC Comite Maghrebin De L’Electricite
EAPP East African Power Pool
EIJLLPST Egypt, Iraq, Jordan, Libya, Lebanon,
Palestine, Syria, and Turkey
IESOE Electricity Interconnection in South-
Western Europe
4

1 Purpose of the assignment

The assignment is associated to Task 2 “Consolidation of common technical regulatory
frameworks”, Activity 2 “Monitoring and Implementation of the Guidelines for the
Mediterranean Grid Codes” of the TEASIMED project. A call for tender ME/P2021/0081
has been issued and the work has been assigned to ENGIE Impact.
The final objective is to propose Grid Code Guidelines for the key areas of convergence
among the involved stakeholders of the Med-TSO Members’ power systems. Such
Guidelines should be focused on these key areas, which will be identified through a
dedicated survey, and will include a proposed structure for a potential future grid code.
An overall overview of the project is shown in Figure 1.

Figure 1: Overview of the project

2 Purpose and structure of the document

The document aims at summarizing the work already performed by the Technical
Committee Regulation and Institutions of Med-TSO during the projects “Mediterranean
Project 1 (2015-2018)” and “Mediterranean Project 2 (2018-2020).

This document provides a clear picture of the status of the national technical grid codes
and level of harmonization between the members of Med-TSO, as analysed by Med-TSO
during the previous projects. A survey accompanies this report and will allow to identify
the key priority areas for the next steps of Grid Code guidelines development.

The report is structured as follows; first a more general background on the Mediterranean
Project 1, Mediterranean Project 2 and TEASIMED project is presented, then summaries
of the main deliverables of Mediterranean Projects 1 and 2 are described in dedicated
sections. Finally, the next steps in the assignment are presented.

3 Background on the work performed by Med-

TSO since 2015
The work done by Med-TSO over the past years can be divided into two main projects,
Mediterranean Project 1 and Mediterranean Project 2. These two projects focused on
diverse power system aspects such as planning, operations, information exchange,
5

training, market studies or technical regulation/grid code. Since 2020, a third project
(called TEASIMED) is ongoing. This third project will continue the work already done with
a special focus on practical implementation, for example via pilot projects. Therefore, the
main challenge that Med-TSO will face in performing the new TEASIMED Project is to
move from the definition of guidelines, rules and methodologies, as it was in MP1 and
MP2, to the development of pilot projects and operational cooperation in the region, in
terms of:
• Starting the implementation of the harmonization of Technical Rules;
• Starting the coordination of the definition of the national Network Development
Plans and the Operation of the interconnected power systems;
• Supporting the involved members in implementing some of the key
Interconnection Projects assessed in the first and second Masterplans of the
Interconnections1
These three projects performed by Med-TSO are further detailed in the next paragraphs.

MEDITERRANEAN PROJECT 1 (2015-2018), the project pursued the objective to promote the
progressive integration of power systems of the Mediterranean shores. The following
actions were investigated during the project2:
• The development of a reference Euro Mediterranean Grid and the development of
a Mediterranean Master plan;
• the definition of a set of rules for a regional Grid Code;
• the optimization of the international electricity exchanges;
• the creation of a Mediterranean database;
• the implementation of knowledge sharing program;
• the adoption of proper visibility initiatives.

MEDITERRANEAN PROJECT 2 (2018-2020), the action plan in this second project can be
divided among six streams of activity3:
• Planning of infrastructure
• Regulation & power system rules: The progress in the harmonization of regulation
in the Mediterranean region for power system rules (in the perimeter of the
network codes) is carefully monitored. A “zonal approach” will be developed to
allow a faster harmonization of a subset of rules in selected zones of the
Mediterranean (pilot projects). To support these endeavors, expected results are:
• A proposal on harmonization of technical rules in the fields of management
and sharing of system services to complete the work accomplished in the
Mediterranean Project 1;
• A Zonal Target Regulatory Framework in selected priority areas;

1 https://www.med-
tso.com/teasimed.aspx?f=&title=TEASIMED+(in+progress%2c+2020+%e2%80%93+2022
)
2 https://www.med-
tso.com/mediterranean.aspx?f=&title=Mediterranean+Project+1+(2015+-+2018)
3 https://www.med-
tso.com/mediterranean2.aspx?f=&title=Mediterranean+Project+2+(2018+-+2020)
6

• A Transparency proposal on a set of data to be published by all the Med-TSO

Members.
• Scenarios adequacy and market studies
• Grid development & market integration
• Operation
• Training and knowledge sharing

TOWARDS EFFICIENT, ADEQUATE, SUSTAINABLE AND INTERCONNECTED MEDITERRANEAN

AN
POWER SYSTEM TEASIMED (2020-2022), aims at achieving significant improvements
towards a single electricity market between the two shores of the Mediterranean Sea4.
The project will follow four working streams:
• Update the Mediterranean Masterplan, the HV Transmission Network
Development plan, in close connection with ENTSO-E Ten Years National
Development Plan
• Consolidate the Common Target Regulatory Framework to let it become a real
Mediterranean Grid Code
• Identify and put into operation pilot projects on selected Interconnected Electricity
Exchange Zones (IEEZ), optimizing the calculation of interconnection capacities
and applying joint operational procedures
• Knowledge Sharing programme, also through the development of a digital web
platform

4 Summary of work performed in task

“TOWARDS A MEDITERRANEAN GRID
CODE” (MP1)

Compilation of relevant
D 1.1: Starting regulatory framework
regulatory framework

Elaboration of common
D 1.2.1: Proposal of a Common Target Regulatory
target regulatory Framework
framework D 1.2.2: Proposal of a Common Tentative Road

Elaboration of draft set

of Mediterranean D 1.3: Models of rules (Procedures Contracts)
network rules
Figure 2: Work breakdown of task “Towards a Mediterranean Grid Code”

4 https://www.med-
tso.com/teasimed.aspx?f=&title=TEASIMED+(in+progress%2c+2020+%e2%80%93+2022
)
7

The task “Towards a Mediterranean “Grid Code” is split into three tasks and four
deliverables as illustrated in Figure . The work has been performed by the technical
committee Regulation of Med-TSO.

4.1 Starting Regulatory Framework (SRF)

4.1.1 Description
OBJECTIVE
The target of this task was to provide an overview of the regulatory framework in the
Med-TSO countries. In particular, the focus was on the TSOs roles and responsibilities on
the following technical topics:
• Operation of the Interconnected Systems;
• Connection of users to the grid;
o Generation units;
o Distribution units;
o Consumption units.
• Market regulation

CONTEXT
While these topics are relevant for each power system, it is important to consider the
non-homogenous situation in each Med-TSO member and therefore to evaluate the level
of harmonization of each topic. Another important particularity of the Mediterranean
Region is that some members are also members of another association of TSOs. For
example, the European countries are also part of ENTSO-e while on the other side of the
Mediterranean Sea, countries are members of COMELEC, EAPP or EIJLLPST. It is worth
mentioning that there are also other regional initiatives such as Energy Communities or
IESOE aiming at facilitating electricity exchanges.

Also, the type of regulatory instrument can differ from one member to another. “For this
purpose a classification of the different types of regulations has been adopted:
• Internal regulation for agreements or contracts adopted between TSOs or with
other stakeholders that do not need an external approval (i.e. the regulator)
• External regulation for Grid Codes or other type of regulation approved by other
entities rather than the TSO. This regulation could be national or regional when it
applies to more than one country.”

METHODOLOGY FOR IDENTIFYING THE REGULATORY FRAMEWORK

The methodology used first a cooperative approach among TSOs. This approach consisted
of frequent interactions and working meetings in order to come with a first draft of the
regulatory and technical aspects.
In a second step, a set of questionnaires has been prepared to evaluate the level of
harmonization on the identified regulatory framework. The main goal of these
questionnaires was to identify common requirements and issues having a common
regulatory treatment.
8

In the next step of the project (see section 4.2), these identifies issues are ranked
according to their priorities.

LIST OF ISSUES IDENTIFIED

From the analysis, a set of issues (or key areas) have been identified and group in the
three following categories (“Connection”, “Operation” and “Market”). The list of these
issues can be seen in Table 1.

SRF KEY AREAS

Connection Operation
Market
Area Area
Connection
System states Legal Issues
procedure
Frequency Technical Capacity
requirements requirements Calculation
Voltage Information Capacity
Requirements Exchange allocation
Reactive
Contingency Dispatching &
power
Analysis Balancing
requirements
Short Circuit Dynamic Settlement &
requirements Stability Metering
Management
of
Protection
international Transparency
requirements
exchange
programs
Control HVDC
-
requirements technologies
Outage
Power quality -
Coordination
Demand Load
Disconnection Frequency -
Scheme Control
System
Reserve
Restoration -
Management
Capability
Demand Side
Response Defense Plan -
services
HVDC Restoration
-
requirements Plan
Compliance &
Training -
Monitoring
9

Dispatch
-
Priority
Table 1: Summary Table on TSOs’ key aspects investigated for Mediterranean countries which are vital for
interconnected system operation and market coupling

ESTIMATED LEVEL OF HARMONIZATION

The level of regulatory harmonization of each topic, regarding the different areas of
interest (connection, operation, and system markets), is analysed.

In terms of interconnected system operation, the analysis revealed that issues related
to real time operation of interconnected systems have a higher degree of
harmonization, especially technical requirements. This does not mean that there is a full
harmonization on these aspects but rather than the same issues are listed by different
members. There is also low harmonization in other operational issues such as reserves
management and load frequency control shows that many differences appear between
different power systems.

As far as the user connection to the grid is concerned, there are aspects being seen in a
different way from the several TSOs comprising the future Mediterranean Electricity
Market. There is therefore still room for improvement to harmonise those issues.

Regarding market aspects, there are two distinct areas among Mediterranean countries.
The first area refers to Middle East & North African electricity systems where there is no
electricity market and the second one refers to the European systems adhering to
ENTSO-E perimeter. Additionally, there is a need for (regional) harmonisation on the
methodology regarding capacity calculation & allocation.

The estimated level of harmonization on these aspects is illustrated in Table 2.

Grid Code
High Medium Low
Category
Connection
procedure,
frequency
requirements,
Control voltage
Requirements, requirements,
Reactive power
Connection Demand Side short circuit
requirements
Response (DSR) requirements,
services power quality,
restoration
capabilities,
compliance and
monitoring
Information Load frequency
Operation System states,
exchange, control, reserves
10

technical contingency management,

requirements, analysis, dynamic HVDC Operation
outage stability,
coordination, management
dispatch priority exchange
programs,
system defense
and restoration,
training and
certification
Legal issues,
capacity
calculation,
System Settlement &
capacity
Markets metering
allocation,
dispatching &
balancing
Table 2::Level of harmonization

The SRF is the platform that compiles the different Mediterranean TSO grid code
regulations & perspectives related to interconnected system operation and market
coupling. Moreover, the level of harmonisation between the different TSO regulations is
identified.

4.1.2 Main Outcomes

The SRF states the list of technical issues that will be the basis for the rest of the work
during MP1 and MP2. From that list, the level of harmonization has been estimated and
the next step is to give priority on each issue that would require harmonization with the
final goal to reach a coupled and single electricity market..
As expected, there is still a certain gap between the different TSOs’ grid codes when it
comes to operational, connection and market aspects. Moreover, the SRF demonstrates
the main differences which currently exist. As a result, it opens the way to move
towards the next step where a common set of rules is recommended.
It is important to note that the document mentions that prioritization could be done by
Interconnected Electricity Exchanges Zones (IEEZ).

4.2 Proposal of a Common Target Regulatory

Framework (CTRF)
4.2.1 Description
OBJECTIVE
11

The objective of this task is to advance towards harmonisation of the development of a

common set of basic rules in the Med-TSO region. A proposal regarding common set of
basic rules for the entire region, with focus on TSOs responsibilities and functions, is the
deliverable target of this task

Such efforts pave the way for a future common Mediterranean electricity market. A
common market will enable sharing resources through cross border exchanges and
therefore increasing the reliability of energy supply across the region.

METHODOLOGY

The technical committee of Med-TSO performed a series of surveys to consider the

feedback of each TSO member.

The first survey started from the 33 key areas identified in Table 1. These key areas
were further split into 135 issues, and it was requested to TSOs to provide their opinion
on the required degree of harmonization (from “no need” to harmonized to “High
Priority”). A second analysis included the rule format, which could either be internal (i.e.
between TSOs, or between TSOs and other stakeholders) or external (i.e. regulation
approved by a non-TSO national or regional entity).

Finally, high-level proposals were provided for a subset of the 135 issues.

PROPOSALS

Based on the survey results, Med-TSO TC Regulation members have agreed on a degree
of prioritization and rule format for a future target Mediterranean regulatory
framework.

From legal perspective, the high priority topic for harmonisation has been identified as
the need to pursue coordinated regulation for international interconnections.
Moreover, the need of a responsible authority with neutral & transparent dispute
settlement procedure between stakeholders has been marked as high priority.

From connection area perspective, there were 15 issues (listed in Table 3), majority of
them referring to frequency, voltage & control requirements, which were prioritised.

Key area Technical issues selected

Connection Studies performed for Access & Connection
Procedure Criteria used for access capacity calculation
Frequency/Time range limits for users to withstand without
damage
Frequency
Rate of change of frequency withstand capability
requirements
Limited frequency sensitive mode - overfrequency &
underfrequency schemes
12

Voltage/time range limits for users to

Voltage withstand without damage
Requirements Requirements for compliance with fault ride through capability
(per technology)
Reactive Power
Limits of reactive power contribution
requirements
Protection Redundancy required for telecommunication and protection
requirements schemes
Global architecture and schemes required for controllability and
observability of non-transmission facilities connected to the
transmission grid?
Control Observability of non-transmission facilities by TSO control
requirements systems (real time monitoring)
Controllability of non-transmission facilities by TSO control
systems
Magnitudes provided in real time from non-transmission
facilities to TSO control centre
Demand
Existence of demand disconnection schemes (low frequency
Disconnection
and/or low voltage) in the system
schemes
HVDC
Existence of specific HVDC requirements or criteria in the system
requirements
Table 3: List of issues to be prioritised for Connection to the grid

Regarding the operation area, 32 issues were selected. Majority of them refer to
technical requirements, information exchange, contingency analysis, load frequency
control, exchanges of reserve and system defence plan (these issues are listed in Table
4).

Key area Technical issues selected

System States Classification of System States
Frequency Ranges (quality parameters) in the different system
states
Voltage Ranges (for unlimited operation) in normal condition
Voltage Ranges (for unlimited operation) in extraordinary
Technical
conditions
Requirements
Specific reactive power management measures in the
international interconnections
System protection coordination criteria on interconnection
lines
List of real time data to exchange with other TSOs
Information
List of scheduled data to exchange with other TSOs
Exchange
List of structural data to exchange with other TSOs
Contingencies considered
13

Contingency List
Operational Security Limits
Operational Security Limits in
Contingency
the interconnection lines
Analysis
List of joint remedial actions
agreed between TSOs following a contingency
Periodicity of state estimation calculations
Management of
Management of international exchange programs between
International
TSOs
Exchanges
Outage Criteria & Procedure for outage coordination when affects
Coordination NTC?
Frequency Containment Reserve Criteria (FCR)
used for establishing the FCR
FCR compliance scheme and economic penalties
for FCR?
Frequency Restoration Reserve (FRR),
Load Frequency Provision of FRR
Control Frequency Restoration Reserve (FRR).
Criteria used for establishing the quantity of
FRR
Frequency Restoration Reserve (FRR)
Compliance scheme and economic penalties
for FRR?
Reserves
Mechanisms of reserves management (exchange and sharing)
Management
Frequency deviation management procedure (Automatic
Under/Over-Frequency control scheme)
Setting of demand disconnection schemes (low frequency
System Defense and/or low voltage)
Plan Voltage deviation management procedure
Power flow management procedure
Manual demand disconnection procedure
Inter-TSO assistance and coordination in emergency state
Restoration Plan Rules and types of restoration plans
Training & Certification of the operators in charge of real time
Certification
Language Requirements
Table 4: List of issues to be prioritised for System Operations
From market perspective, there were 16 issues that were prioritised. Those issues were
correlated to capacity calculation & allocation as well as dispatching and balancing
transparency (these issues are listed in Table 5).

Key area Technical issues selected

14

Contractual requirements for participation on the cross-border

electricity trade in each individual system.
Rules for export/import of cross-border electricity (including
agents enabled for import/export activities)
System Service Categories of operators enabled for import/export activities.
Market Issues Presence of a Market Operator.
Requirements to satisfy for using the interconnections (e.g.
demand/offer equilibrium, congestion management at
national, and if possible, at international level, balancing of the
exchange program in real time, coordinated dispatching).
Security criteria used for calculating the Net Transfer Capacity
(NTC).
Capacity
Characteristic process for finalization of Net Transfer Capacity.
Calculation
Reference time horizons used for capacity calculation and
process for calculating capacity in the different time horizons.
Obligation regarding the use of the capacity allocated - Use it
or sell (or loose) it mechanism
Kind of capacity products allocated (duration and time
profiling)
Methods and procedures applied for transmission capacity
allocation (e.g. public auction or tender procedures) including
Capacity Allocation
Physical transmission Rights (PTR) allocation.
System of liabilities, guarantees and penalties (technical and
commercial) applied for each subject (Market Players) involved
in the allocation procedure
Subject responsible for the management of the allocation
procedure.
Actions foreseen in order to guarantee the exchange programs.

Dispatching & Management of unintentional deviations on international

Balancing interconnections (e.g. compensation mechanisms, pay in kind
methods, etc.).

Presence and modalities of publications (public information) on

the Electricity Markets data in each country.
Transparency
Presence and modalities of publications (public information) on
international interconnections data in each country.
Table 5: List of issues to be prioritised for Market

4.2.2 Main Outcomes

The Common Target Regulatory Framework (CTRF) recommends common rules following
the results of individual surveys from each TSO member.

From legal and regulation perspective, the CTRF makes a proposal regarding three key
issues that were ranked as high priority for harmonisation.
15

From connection area perspective, the original survey included 41 different issues.
However, only 15 issues were selected for proposals.

From operation of the interconnected system perspective, the original survey included
57 different issues. However, 32 issues were identified as high priority.

Regarding system services market considerations, 26 issues were originally identified by

the survey, and 16 issues were selected as high priority. from the survey regarding system
services market requirements.

As the high priority subjects were selected and the relevant proposals were submitted,
the next step is to move towards a tentative roadmap that will propose a timing of the
different phases for the implementation of the proposals.

4.3 Proposal of a Common Tentative Road Map (CTRM)

4.3.1 Description
OBJECTIVE

The “Proposal of a Common Tentative Road Map (CTRM)“ is the third task of project MP1
(subtask 1.2.2 as per Med-TSO). The objective of the previous task (CTRF) was to prioritize
the 135 issues identified into 66 key issues. Starting from these key findings, the CTRM
aims at proposing a tentative roadmap for implementation of the 66 grid code regulation
issues that were previously prioritised for harmonisation. In other words, this subtask
adds a temporal dimension on top of the prioritization dimension achieved with the
previous subtask.

METHODOLOGY

The starting point of this work is the 66 key issues identified previously, grouped in 4
different aspects: regulatory, connection, operation and market system services. The
vision of the participating TSOs on each issue was captured through a survey where they
were asked to place each issue in one of the following time horizon for implementation:

Figure 3: Different time horizons for compliance implementation (Regulatory phase) with the CTRF

The results of the survey are summed up for each issue and it has been identified that the
priority is given first to operation requirements, followed by market services and finally
connection issues.
16

PRIORITIES

Finally, the 66 issues were clustered from the previous results into categories based on
their topic, level of prioritization (CTRF) and temporal prioritization. These so-called
“general categories” are listed here under, per order of temporal priority
1. Transparency and Information exchange platform
2. Management of International Interconnections
3. Frequency/voltage management and control in different system states
4. Criteria for connection
5. Legal and Regulatory
6. Training and Certification

REGIONAL GROUPING

The previous results have been further analysed to group the different countries
according to the number of their common responses against the vital topics of CTRM.
From the conducted analysis & comparison, two groups of countries were highlighted.
The first group that has the highest number of common responses against the 66 priority
topics and a second group with lower degree of response commonality.

The first group consists of Tunisia, France, Morocco, Portugal, Spain, Greece, Italy,
Albania and Algeria. Countries like Libya, Cyprus and Montenegro belong to the second
group.

4.3.2 Main Outcomes

The CTRM allowed to build a tentative roadmap for harmonization which characterises
the priority given to each technical issue (categorized in the six aforementioned
categories) as well as a specific estimated calendar for implementation and entry into
force. For the sake of illustration, Figure 4 shows the technical issues identified to be
harmonized in the short-term.
17

Figure 4 – Common Tentative Road Map, list of technical issues with highest priority5

5 Med-TSO, Deliverable 1.2.2 Proposal of a Common Tentative Road Map (CTRM) for adoption and compliance with the proposed Common
Target Regulatory Framework
4.4 Models of Rules (Procedures/Contracts)
4.4.1 Description
OBJECTIVE

The “Models of Rules” is the last deliverable of project MP1 (labelled as 1.3 as per Med-TSO).
Building on the findings of the previous tasks – and mainly from the CTRM – this task assesses
the current harmonization level of the legal framework of the Med-TSO countries, then
suggests recommendations to improve it. The final objective is to propose models of bilateral
contracts between the following parties:
• Connection Contract TSO-User for users to connect to the grid;
• Operation Agreement TSO-TSO between neighbouring TSOs;
• Grid Code with the chapters about requirements for connection (GC RC) and about
system operation (GC SO).

METHODOLOGY

For each of the three previously analysed documents, the level of harmonization (for the
countries where such documents are already in force) is assessed through a survey.
Following this gap analysis, the report details guidelines and recommended content to be
included for each contract, under the form of a model, detailed per chapter.

4.4.2 Main Outcomes

CONNECTION CONTRACT TSO-USER

The survey results identify important discrepancies between countries regarding the types
of connection contract, technical areas covered by the contract, validity in time,
identification of connection point, etc.

The objective of the contract model (see Annex A of the document6) is then to harmonize
the connection procedure throughout the whole Med-TSO area.

OPERATION AGREEMENT TSO-TSO

6 https://www.med-
tso.com/publications/Deliverable_1.3_Models_of_rules_(Procedures_Contracts).pdf
 19

The survey which focussed mainly on operation topics, also emphasizes a lack of
harmonization regarding interconnected TSOs, and more specifically on the following topics:
capacity calculation, outage scheduling, information exchange, balancing, unintentional
deviations, market coupling, capacity allocation, etc.

The objective of the contract model (see Annex B of the document) is then to harmonize the
TSO-TSO Operation Agreement procedure throughout the whole Med-TSO area.

GRID CODE

For Grid Code harmonization, the report uses the surveys that were presented to the TSO
during phases 1.2.1 and 1.2.2 (CTRF and CTRM – see sections 4.2 and 4.3). The suggested
grid code requirements focus on the 66 issues classified as priority, and more specifically on
the 15 relevant for connection and on the 32 relevant for operation. They are summarized
in Table 4 and Table 5.

Table 6 – 7 issues selected to be included in the proposal for Grid Code on Requirements for Connection (GC RC)
 20

Table 7 - 12 issues selected to be included in the proposal for Grid Code on System Operation (GC SO)7

7 Med-TSO, Deliverable 1.3 Models of Rules (Procedures/Contracts)

 21

5 Summary of work performed in task

“REGULATION AND RULES” (MP2)
5.1 Proposal of Common Rules about the provision of
system services
5.1.1 Description
OBJECTIVES

This task (deliverable 2.1 of MP2) aims at completing the work performed during MP1 by a
proposal on system services. Therefore, a complete proposal of the Mediterranean Grid Code
has been developed covering 3 main technical areas:
• Connections of users to the grid (developed in Mediterranean Project I);
• Operation of the interconnected systems (partially developed in Mediterranean
Project I and completed now with the load frequency control aspects);
• System services.

METHODOLOGY

Similarly to the previous tasks, the methodology used various surveys and discussions
between TSOs. Specific tasks within this deliverable focused on:
• Capacity calculation
• Capacity allocation
• Legal issues
• Load Frequency Control and definition of reserves
• Activation of reserves and management of unintended deviations

CAPACITY CALCULATION

The capacity calculation section outlines some important aspects to consider when
calculating transfer capacity. The first one is the timeframe used for capacity calculation (e.g.
daily, monthly). Secondly, the model used for the calculation is important and in particular
how to merge grid model. Third, the methodology for calculating transfer capacity should be
agreed between neighbouring TSOs using the same security criteria and security limits.

CAPACITY ALLOCATION

This section discusses four design features of cross-border capacity allocation. First, the
capacity allocation timeframe which could include long-term forward market, day-ahead,
 22

intraday market timeframes. Second, the allocation mechanism which is expected to be

market based in order to foster competition and market integration. In this case,
harmonization could be required in terms of the auction design (implicitly or explicit
auctions). Third, the procedure for splitting capacity between timeframes and defining
bidding zone which should be guided by the principles of overall market efficiency and should
properly reflect cross-border as well as internal grid congestions. Finally, the procedure for
the use and nomination of capacity in the long term forward market, day ahead and intraday
market are explained and proposals are put forward.

LEGAL ISSUES

The legal issues focus mainly on the definition of the role and responsibilities of the following
actors: TSO, market participant, balance responsible party, balance service provider. It also
clarifies rules for allocation and use cross-border capacity, and for balancing. A section also
outlines the role of BRP and TSO in case of imbalance.

LOAD FREQUENCY CONTROL & DEFINITION OF RESERVES

This section outlines that in an interconnected system, each TSO needs to maintain sufficient
reserve to cope with unplanned contingencies or slower imbalances (e.g. caused by load or
generation forecast errors).
The need to harmonize the definition and sizing of reserves is important to maintain system
security but also to limit the time error in each frequency control area.

ACTIVATION OF RESERVES AND MANAGEMENT OF UNINTENDED DEVIATIONS

This section proposed guidelines for the activation of reserve via the development of common
platforms.

5.1.2 Main Outcomes

This deliverable completed the work performed in MP1 by including the following additional
important aspects of an interconnected systems.
• Capacity calculation
• Capacity allocation
• Legal Issues
• Load Frequency Control and definition of reserves
• Activation of Reserves
High-level proposals for each of these aspects were made.
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5.2 Connection Procedure Proposal

5.2.1 Description
OBJECTIVES

The objective of this deliverable is to develop a proposal for connection of generation facilities
to the grid. This includes procedure and technical requirements.

METHODOLOGY

The deliverable is split into different sections and each section is supported by a dedicated
survey. The sections are the following:
• Generation expansion planning
• Access and Connection technical procedure
• Studies and criteria for access and connection assessment

5.2.2 Main Outcomes

The document describes wide variety of aspects covering generation expansion planning,
type of studies to be performed, technical requirements for generating units and grid costs.
Four main issues are detailed in the proposal regarding different aspects to be considered
within connection procedure.

The generation expansion approach is explained. Moreover, the procedure itself, including
administrative implications, is explained.

The set of studies that need to be performed by a TSO to assess the spare capacity in the
transmission grid are also clarified.

Finally, the economic aspect regarding transmission grid related costs, needed for generation
facilities connection, is analysed.

5.3 Candidates for Pilot Projects

5.3.1 Description
Objectives
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During this task, the implementation of a zonal approach regarding the harmonisation for a
sub-set of technical rules within a selected priority sub-region is explained. In such a way, the
overall harmonisation process across Mediterranean can proceed faster.

Methodology

An initial list of potential zones where Pilot Projects may be launched has been developed
according to a two-dimensional analysis (geographical and regulatory based). Moreover, the
details of the several proposals for the definition of zones among Mediterranean members
are given.
From this list of potential pilot projects, one is chosen based on discussion with TSOs.

Propositions of pilot projects

Considering the geographical dimension, four zones (set of power systems) within MED-TSO
perimeter were considered as potential candidates to be analysed.

Pilot project proposition 1:

Zone: Morocco, Algeria, Tunisia, Libya

Focus on the following technical issues: operations, interconnection management and
commercial exchanges.

Pilot project proposition 2 :

Zone: Morocco, Algeria, Tunisia, Libya, France, Spain, Portugal, Italy

Focus on the following technical issues: capacity calculation and allocation.

Pilot project proposition 3:

Zone Libya, Egypt, Jordan

Focus on the following technical issues: Interconnection management

Pilot project proposition 4:

Zone: Libya, Egypt, Jordan, Israel, Palestine, Cyprus, Turkey and Greece
Focus on the following technical issues: HVDC connection.
Following a discussion on technical and practical aspects and considering the short-term
horizon for the project implementation, Maghreb area (Morocco, Algeria, and Tunisia) was
selected as the first pilot zone.

Common set of regulatory issues in selected zone

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The selected area is clarified in detail, from regulatory framework & High Voltage
Infrastructure point of view till aspects of energy exchanges and consistency of the
interconnection.
Then, the possible common set of regulatory issues relevant to the harmonization project are
identified. This is done based on a mini survey that was distributed with the members of
concerned TSOs (STEG, SONELGAZ/OS and ONEE). The main common issues identified by the
three TSOs are shown in Figure 5 and Figure 6.

Figure 5: Common presentation of commercial and economic aspects for pilot project
 26

Figure 6: Common presentation of Technical aspects for pilot project

Moreover, the individual concerned TSO perspective is described and explained.

Finally, a joint proposal is presented.

5.3.2 Main Outcomes

A pilot project has been selected in order to “fast-track” the harmonization of the regulatory
framework in a specific zone of the Mediterranean region. Based on the survey conducted
with the involved TSOs, a trading platform for commercial exchanges seems to be their
common issues ranked as the highest priority.

5.4 Proposal of tentative road map for a practical

implementation of harmonised rules in pilot project
5.4.1 Description
Objectives
The objective of this subsection is to elaborate on the practical implementation plan for
harmonising a subset of rules needed to move towards a coupled electricity market
establishment between the countries of Maghreb. A tentative road map for practical
 27

implementation of harmonised rules in Pilot Project is presented. The required activities to

achieve a timely harmonisation implementation are also described.

Methodology

Stakeholder engagement

The feasibility of the Pilot Project depends on the approval from the relevant regional
stakeholders like:
• Ministries;
• National Regulator Authorities;
• TSOs;
• Regional Institutions like COMELEC and MEDREG;
• Others
Therefore, stakeholder engagement is a key step in order to allow harmonization.

Benchmarking

During this step, similar experiences from other regions will be analysed, in particular the
integration models and arrangements for cross-border trading in the international arena.
Then, the identification and evaluation of the different features of each model shall be carried
out.
Globally, there are several examples of multi-national interconnected power systems that
enable multilateral power trading. These international examples will be investigated and
then, the project team will focus on selected cases that present higher degree of similarity in
terms of context and objective.
As long as the list of selected cases is finalised, then the next target shall be the selection of a
model that suits in the best way for Maghreb TSOs. This model will be the base for the
Maghreb Electricity Zone proposal.

Analysis of the status of regulatory framework in Maghreb countries

The project team shall specify the existing barriers that block the energy exchange increment
via the ITA, IMA & IME transmission interconnections.
The revision and consolidation of the existing bilateral procedures will be also a duty of the
project team during this step.
Finally, at the end of this step, a deliverable shall be submitted that will cover the following
aspects:
• Benchmarking on similar cases of electricity market and trade platforms;
• Specification of Cooperation Principles;
• Benchmarking on electricity generation and price bidding mechanisms;
• Analysis of the status of the regulatory framework among Maghreb countries.
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Minimum requirements for a functionable coupled electricity market

The project team will identify the minimum requirements for a power trading model that
will consider technical, commercial and communication aspects.
During this step, the project team will identify the issues needing an intervention by the
relevant TSO to become compliant with the determined minimum requirements conditions.
The concerned TSOs will develop their best effort to ensure that the necessary actions are
put in place.
Finally, a deliverable shall be submitted describing the minimum requirements necessary for
a functionable coupled electricity market as well as an action plan for filling the gap.

5.4.2 Main Outcomes

The benefits derived from a multilateral power trade agreements among Mediterranean
countries are presented. In that context, the Maghreb TSOs have chosen to develop a zonal
platform for power trading.
The required activities to reach the target of a common power trading platform
establishment are detailed. Finally, a tentative timeline of the different activities is listed.
 29

6 Conclusions and Next steps

This report summarized the work performed by Med-TSO in Mediterranean Projects 1 and 2.
During the review of the documents, it has been observed that a significant amount of work
has been performed by Med-TSO. Four main categories of regulatory aspects were identified
(Legal&Regulatory, Connection, Operations, Market) and key areas in each of these
categories were selected.
There are some important take-aways from these reports:
1. All regulatory aspects do not need to be harmonized, but some have higher priorities
and should be analysed first.
2. Zonal harmonization could be a good solution to take into consideration the
specificities of each member of Med-TSO
3. Technical but also regulatory and institutional barriers exist
4. Med-TSO do not aim to provide binding rules but rather a set of guidelines facilitating
cost-efficient energy exchange between its members.
It is noted that the previous study has been made mainly performed by TSOs. While it is clear
the TSOs are key actors for many of the identified aspects, the next step is to engage more
with stakeholders. From the pilot project, it has been shown that stakeholders involve a wide
variety of actors, such as ministries, regulators, customers, producers, regional institutions,
etc.
Therefore the key question that needs to be answered next is: “Are the key priority areas the
same for all stakeholders?”

In particular, the ideal target would be to determine:

1. The minimum set of rules (or key priority areas) to ensure interconnected operation?
2. The minimum set of rules (or key priority areas) to ensure energy exchange?
3. The minimum set of rules (or key priority areas) for a single market?

For this reason, the next step is to launch a survey to stakeholders in the Mediterranean
Region in order to validate, adjust or complement the work performed in MP1 and MP2.