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Q&As on REMIT – Question II.4.32.

Could you please clarify the registration/reporting obligation under Article 4(1) and (2) of Commission Implementing Regulation (EU) No 1348/2014 in relation to contracts for the physical delivery of electricity produced by wind turbines? Which contracts for the physical delivery of electricity remain below the threshold of 10MW?


Answer:

In line with Article 4(1)(b) of Commission Implementing Regulation (EU) No 1348/2014, contracts for the physical delivery of electricity produced by a single production unit with a capacity equal to or less than 10MW or by production units with a combined capacity equal to or less than 10MW shall be reportable only upon reasoned request of the Agency, unless concluded on organised market places. Thus, market participants who only complete such transactions do not have to register at the relevant NRA.

According to Article 2(13) of Commission Implementing Regulation (EU) No 1348/2014, production unit means a facility for generation of electricity made up of a single generation unit or of an aggregation of generation units. Thus, a production unit is not always a single production unit (e.g. one wind turbine) but it can also be a combination of units (e.g. several wind turbines). In defining a production unit the spatial proximity and the ownership structure are relevant. Thus, a production unit might be a part of a wind farm (e.g. 5 wind turbines) owned by one market participant.

That leads to the following specific examples for wind power plants (accordingly for other types of production):

– A) Contracts for the physical delivery of electricity of a wind farm (or parts of the wind farm) with a total production capacity of equal to or less than 10MW are reportable only upon reasoned request of the Agency and on an ad-hoc basis (diagram at the top left).

– B) Contracts for the physical delivery of electricity of a wind farm (or parts of the wind farm) larger than 10MW are reportable on a regular basis (diagram at the top right).

– C) If a market participant has more than one wind farm (or parts of a wind farm) at his disposal which are spatially separated and each of it has a production capacity of equal to or less than 10MW and which are marketed in different contracts, these contracts are not reportable (diagram at the bottom left).

– D) If a market participant has more than one wind farm (or parts of a wind farm) at his disposal which are spatially separated and each of it has a production capacity of equal to or less than 10MW and which are marketed in one common contract, this contract is reportable (diagram at the bottom right).

If the marketing of the production capacity is performed by a third-party – e.g. the operator of a wind farm – and the wind farm has got a total production capacity larger than 10MW, this third-party has to register as market participant and to report the corresponding contracts.

Q&As on REMIT - Question II.4.32_table

 

 

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