P344 ‘Project TERRE’
Formal title: ‘Project TERRE implementation into GB market arrangements’
P344 was raised to align the Balancing and Settlement Code (BSC) with the European Balancing Project TERRE (Trans European Replacement Reserves Exchange) requirements. This is in order to allow the implementation of the TERRE balancing product at national level and hence ensure compliance with the European Electricity Balancing Guideline (EB GL).
The implementation of P344 is split between Wider Access, which went live in December 2019 and TERRE, which is now expected in late 2020.
The first part of P344’s implementation was on 28 February 2019 as part of the February 2019 BSC Release. Whilst the documentation was implemented, only the provisions relating to market entry and registrations were active. The first half of P344 functionality, Wider Market Access (increasing GB access to the market) subsequently went live on 11 December 2019. The remaining part of P344, the European TERRE part, will go live later in 2020 (not expected before October 2020).
Ofgem determined on 24 August 2018 that the P344 Proposed Modification (customer consent required for the sharing of HH delivered volumes with the customer’s Supplier) be approved. This was contrary to the Panel’s view that the Alternative Modification (mandatory sharing of HH delivered volumes with the customer’s Supplier) should be approved.
Subsequently, five industry working groups (IWGs) were formed to discuss and develop the processes that support TERRE in the BSC Code Subsidiary Documents (CSDs). These IWGs can be found on the ELEXON website under Committees & Groups – Industry Working Groups
Delays to TERRE go-live
On 28 November 2019 Ofgem granted National Grid ESO’s request for a derogation from participation in Project TERRE until June 2020. Read full details and the ELEXON response on the Project TERRE derogation decision.
Further, on Friday 24 April 2020, National Grid ESO announced a delay to implementing the necessary changes that will enable industry parties in Great Britain to participate in TERRE so that:
- tore colleagues can focus operational roles during COVID-19; and
- the French TSO, Réseau de Transport d’Électricité (RTE), has already taken the decision to delay implementation to later in the year and GB cannot deploy access to the European RR market using the Libra platform until it is also deployed in France.
We are working closely with National Grid ESO to assess the impact of the further delay and devise a new plan, which we will share once devised. You can read the full details of ELEXON’s response to the delay here.
We will continue to work with NGESO to ensure we are ready for TERRE go-live, expected towards the end of 2020.