European Network of Transmission System Operators for Electricity

Creation of ENTSO-E was initiated by the adoption of the European Union third legislative package on the gas and electricity markets. In 2003, the European Commission conducted a sector inquiry concerning the competition of electricity market in six European countries. Examining competition in these countries, the final report stated serious issues to be solved. It was noticed that the integration between member state's markets is still insufficient. Additionally, the absence of transparently available market information was assessed. As a result, the third legislative package on the EU gas and electricity markets was adopted by the European Commission in September 2007.

On 27 June 2008, 36 European electricity transmission system operators (TSOs) signed a declaration of intent in Prague to create the ENTSO-E. ENTSO-E was established on 19 December 2008 in Brussels by 42 TSOs as a successor of six regional associations of the electricity transmission system operators. ENTSO-E became operational on 1 July 2009. The former associations ETSO, ATSOI, UKTSOA, NORDEL, UCTE and BALTSO became a part of the ENTSO-E, while still offering data by their predecessors for public interest. Until then, the Union for the Coordination of Transmission of Electricity (UCTE) was the main organization managing what is now the Continental Europe Synchronous Area.

Pan-European Transmission Network plans and cost–benefit analysis

The ten-year network development plan (TYNDP) is drafted by ENTSO-E, in close cooperation with stakeholders, under scrutiny of ACER and is finally adopted by the European Commission. It is the only existing pan-European network development plan. It is the basis for the selection of EU projects of common interest (PCIs). The list of PCIs is not fixed by ENTSO-E and is subject to a different process led by the European Commission and EU Member States.

The TYNDP is updated every two years. For inclusion in the TYNDP, each project, whether transmission or storage, has to go through a cost–benefit analysis. The benefit analysis methodology is developed by ENTSO-E in consultation with stakeholders and adopted by the European Commission. It assesses projects against socio-economic and environmental criteria.

Network codes

ENTSO-E's network codes are binding pan-European rules drafted by ENTSO-E in consultation with stakeholders, with guidance from ACER. Network codes are grouped in three areas:

connection codes connecting electricity generators, demand, and direct current lines to the transmission grids;

Legal basis

The Third Energy Package and Regulation (EC) No 714/2009: on conditions for access to the network for cross-border exchanges in electricity regulation stipulate ENTSO-E's tasks and responsibilities.

Regulation (EU) 838/2010: on guidelines relating to the inter-TSO compensation mechanism sets out the methodology by which TSOs receive compensation for the costs incurred in hosting cross-border flows of electricity.

Regulation (EU) 347/2013: on guidelines for trans-European energy infrastructure defines European Projects of Common Interest (PCIs) identifies ENTSO-E's ten-year network development plan (TYNDP) as the basis for the selection of PCIs. ENTSO-E is also mandated to develop a corresponding cost–benefit methodology for the assessment of transmission infrastructure projects.

The Transparency Regulation (EU) No. 543/2013 : on submission and publication of data in electricity markets makes it mandatory for European Member State data providers and owners to submit fundamental information related to electricity generation, load, transmission, balancing, outages, and congestion management for publication through the ENTSO-E Transparency Platform.

ENTSO‑E does not class as a "public sector body" under the meaning provided in the 2019 Open Data Directive.