Glossary

Glossary

Canonical terminology for the Flex Wiki. NC DR terms are preferred where the Network Code on Demand Response defines them — these will become binding EU-wide definitions. Swedish terms are included where they are standard usage.

A

Abonnemangsväxling (Swedish) “Subscription switching” — a coordination mechanism used in sthlmflex that enabled flexibility resources in any of the three Stockholm regional DSO areas to be used by any buying DSO. When a regional DSO purchased flexibility from a resource in another DSO’s network area, the resource’s DSO received a reduced subscription from Svenska kraftnät, while the buying DSO’s subscription was raised correspondingly — on an hour-by-hour basis. Financial settlements were handled by the market operator (NODES); subscription management was handled by Svenska kraftnät. Required specific bilateral and three-party agreements between Svk and the participating regionnätsbolag. Not applicable to E.ON Energidistribution’s lokalnät participation in sthlmflex. (Source - sthlmflex säsong 3 (2022-2023))

Acesso com restrições (Portuguese) “Restricted access” — Portugal’s structural equivalent of Swedish villkorade avtal. A distribution network connection where the customer or producer is granted access at a capacity level that the DSO (E-Redes) may curtail when the network is constrained. ERSE’s 2025 opinion on PDIRD-E 2024 explicitly recommends E-Redes actively publish available-but-not-firm capacity and offer restricted access — particularly to storage operators who can develop flexible business models around it. (Source - ERSE Parecer PDIRD-E 2024)

Active customer Final customer or group of customers who consume, store, or sell self-generated electricity, or participate in Flexibility schemes or energy communities. Amended by Directive 2024/1711 to explicitly include customers sharing electricity within other premises — covering energy sharing participants. (Directive 2019/944, Art. 2(8) as amended by Directive 2024/1711)

aFRR — Automatic Frequency Restoration Reserve Balancing product activated automatically within ~30 seconds to minutes to restore frequency to 50 Hz after FCR activation. Bidirectional. See Balancing Markets.

Aggregation / aggregator Combining multiple customer loads or generated electricity for sale, purchase, or auction in electricity markets. An independent aggregator operates without being affiliated with the customer’s supplier and cannot be required to obtain supplier consent. See Aggregation. (Directive Art. 2(18), Art. 13)

Anticipatory investments Grid investments sized for expected future needs rather than only current confirmed connection requests. Introduced as a concept in the revised EU Grid Action Plan and the amended Electricity Market Directive. The principle: distribution grids should not become bottlenecks in the energy transition; earlier investment can avoid costlier later upgrades and accelerate RES connection. DNDPs should flag which projects are “anticipatory” — enabling market participants to see where future grid capacity will be available ahead of actual requests. Requires a regulatory incentive framework that does not penalize anticipatory investment, which connects to the TOTEX/lösningsneutralitet reform at Ei. (Source - DSO Entity DNDP Good Practices (2024))

EC formal definition (June 2025): “investments into grid infrastructure assets that proactively address network development needs beyond the ones corresponding to reinforcements relating to currently existing grid connection requests, that are justified in network development plans.” (Source - EC Study Distribution Grid NDP Tariffs and Connections 2025)

Availability contract (fast bid agreement) A capacity-based payment to a flexibility service provider for being available to deliver flexibility, regardless of whether the DSO actually activates the resource. A key finding from CoordiNet: energy-only payment is insufficient for FSPs to make the investment in flexibility provision given the high variability (3×) in activation frequency between warm and cold winters. Availability contracts provide a predictable revenue floor that makes the FSP business case viable in thin, weather-dependent markets. Introduced in CoordiNet Skåne from winter 2020/2021, Uppland from 2021/2022. (Source - CoordiNet D4.7.2 Swedish Demonstration (2022))

B

Balance Responsible Party (BRP) Market participant financially responsible for imbalances between scheduled and actual electricity injection/withdrawal. Aggregator activations may trigger energy transfer between BRP portfolios. In the Swedish balancing market, each delivery point belongs to exactly one BRP; when an aggregator activates a resource, the resulting energy shift must be settled between BRPs. (Regulation Art. 5; Source - Svk Artikel 18 Villkor Balansering (2024))

Balance Service Provider (BSP) / leverantör av balanstjänster Entity providing balancing services (FCR, aFRR, mFRR) to a TSO. A BSP may aggregate units from multiple BRP portfolios — this is the mechanism intended to enable cross-BRP aggregation in balancing markets. Defined in Source - EB GL (Regulation 2017-2195) Art. 16; national terms under Art. 18 must include aggregation rules (Art. 18.5.c). In Sweden, Svenska kraftnät‘s consolidated 2024 terms (reference 2024/2011) define BSP objects (FCR-objekt, aFRR-objekt, mFRR-objekt) that may span multiple BRPs, but bid submission rules (Arts. 10a/10b/11a/11b) require same-BSP per bid — creating the “paper construction” where cross-BRP aggregation is defined but not operationally available. Full functional implementation deferred to 2028. See Aggregation › The “paper construction” — objects vs. bids.

Balanspunkt (Swedish) — balance point NordREG’s term for the network node at which an aggregator’s portfolio is measured and settled with the TSO balancing system. Distinguished from uttagspunkt (withdrawal point — the individual customer’s metering point). Under NordREG’s two-model framework for independent aggregation: Model 1 requires each aggregator resource to sit in its own BRP portfolio (solved with multiple BRPs); Model 2 uses a single BRP with a compensation mechanism between BRPs for imbalance effects. The balanspunkt concept underpins the compensation mechanism design — the aggregator’s deviation from baseline at the portfolio level triggers financial settlement at the balanspunkt. Sweden’s implementation uses the compensation mechanism model. See Aggregation. (Source - Ei R2021-03 Oberoende Aggregatorer)

Balancing markets Markets through which TSOs procure reserves and activate energy to maintain real-time generation-consumption balance. Nordic products: FCR-N, FCR-D, aFRR, mFRR. (Regulation Art. 6)

Baseline Calculator (IA DR role) The party responsible for calculating baselines for Controllable Units under NC DR Title II baseline methodology. One of the new functional roles introduced by the IA DR (Implementing Act on Demand Response) that are not present in the main NC DR or IR 2023/1162. The Baseline Calculator works with the Baseline Provider to determine the counterfactual consumption or generation that serves as the reference for flexibility quantification.

Baseline methodology Method for determining what a resource’s consumption or generation would have been without flexibility activation. Essential for verifying delivery and settlement. Contested in the NC DR — debate over whether smart meters suffice or dedicated metering is needed.

Berättigad part (Swedish — “entitled party”; also called energitjänsteföretag on Edielportalen) A recognized Swedish electricity market actor type holding the right to access a consumer’s metering data for the purpose of providing energy services — including flexibility, demand response, and automated optimization. Operational from 1 June 2025 (EU legal basis: Directive 2019/944 Art. 23, applicable from 5 January 2025; Swedish national rules in Mätföreskriften + Ediel-anvisning from 1 June 2025). Process: the berättigad part signs an Ediel-avtal with Svenska kraftnät and bilateral agreements with each DSO where its customers are located; sends PRODAT Z13 to request data access; consumer approves via Mina sidor within 21 days; DSO confirms via Z14 and begins delivering quarterly (15-minute resolution) meter data. Before this mechanism, data access required case-by-case power-of-attorney arrangements — the berättigad part mechanism replaces this with a standardized process. Historical data (up to 3 years) can be requested alongside ongoing access. DSOs charge per-transaction fees (rates vary and must be published). See Berättigad part. (Source - Svensk Elmarknadshandbok 26A (2026))

Bidding zone (preferred NC DR term) / bidding area (Swedish usage) Geographic area within which a single electricity price applies. Sweden has four: SE1–SE4. Structural congestion between zones is reflected in price differences. See Bidding Areas. (Regulation Art. 2(65), Art. 14)

C

CAES — Compressed Air Energy Storage Hours-timescale storage technology with limited deployment. See Energy Storage.

CAPEX bias Structural incentive in the Swedish revenue cap regulation (intäktsramsregleringen) that makes grid investment more attractive to DSOs than flexibility procurement, because capital investments earn regulated return while flexibility is treated as operating expenditure subject to efficiency requirements. Identified by Ei as a barrier to flexibility adoption (Source - Ei Flexibility in Distribution Grids (2023)). Being addressed from 2028 through the TOTEX reform introducing lösningsneutralitet — see Source - Ei Inriktning intäktsramar 2028-2031 (2025).

Cascade model (kaskadmodell) Market integration approach where bids not cleared on a local Flexibility Market are forwarded to another market (e.g., Svk’s mFRR market). Tested on CoordiNet and sthlmflex in Sweden. Enables value stacking across markets. (Source - Ei Flexibility in Distribution Grids (2023))

CEP — Clean Energy Package Set of eight EU legislative acts (2018–2019) rewriting rules for European electricity markets. The two most relevant to flexibility: Directive 2019/944 and Regulation 2019/943. See Clean Energy Package.

Citizen energy community Legal entity controlled by members located near renewable energy projects, whose primary purpose is to provide environmental, economic, or social community benefits rather than financial profits. Can collectively participate in Flexibility Markets. (Directive Art. 16)

CNEC — Critical Network Element and Contingency A specific combination of a network element (transmission line, transformer, or corridor) and a contingency scenario (N-0 normal state, or N-1 after a defined fault) that is monitored in Flow-Based Capacity Calculation. The flow on each CNEC must not exceed its thermal limit (Fmax). The RAM (remaining available margin) on a CNEC is the share of its capacity left for cross-zonal trade after subtracting reliability margins, already allocated flows, and flows in a zero-net-position scenario. CNECs whose maximum zone-to-zone PTDF (Power Transfer Distribution Factor) falls at or below 5% are excluded from the flow-based domain as not significantly influenced by cross-zonal trade (CACM Art. 29.3(b)). See also: CDC, RAM, PTDF, Flow-Based Capacity Calculation. (Source - Nordic CCM Third Amendment Package (2026))

CONDON — Coordination of the Nordic transmission system operators. The informal coordinating body of the four Nordic TSOs: Fingrid (Finland), Energinet (Denmark), Statnett (Norway), and Svenska kraftnät (Sweden). CONDON publishes joint positions, coordinates technical standards, and aligns requirements for connected technologies across the Nordic synchronous area. Notable output: the November 2025 joint position on grid-forming converter requirements — the first pan-Nordic GFM specification framework. (Source - CONDON Nordic Position on Grid-Forming (2025))

Co-design (DSO mechanism design principle) The principle that network tariffs, flexible connection agreements (FCAs), and local flexibility markets should be designed jointly rather than independently, because the three mechanisms interact. Since FCAs can pre-empt market resources, network tariff signals can crowd out market bidding incentives, and market clearing rules affect how FCA holders can participate, designing them in isolation risks redundancy, conflicting incentives, or — in the worst case — definite incompatibility (a “red condition”). The practical co-design implication for Swedish DSOs: sequence the mechanisms (market-based procurement first, FCAs as backstop) so that FCA activation displaces market activation rather than duplicating or contradicting it. See Flexible Connection Agreements, Flexibility Market › DSO mechanism co-design — the interaction challenge. (Source - DSO Service Acquisition Interaction Comillas (2024))

Congestion area (NODES platform term) The geographic unit of procurement in the NODES flexibility market platform. Each congestion area corresponds to an order book; the DSO defines which areas exist in its network. Areas can be linked vertically so that sell orders in a local area are visible to buyers at higher grid levels (regional DSO, TSO), and buy orders flow down to linked sub-areas — enabling cascade-model or common-market coordination without duplicating procurement infrastructure. Not to be confused with the general concept of congestion management; this is a NODES-specific platform architecture term. See NODES › Congestion area linking, Congestion Management. (Source - NODES FPM Presentation (2026))

Congestion management Actions taken by system operators when the grid cannot accommodate all requested power flows. Includes redispatching, countertrading, bidding zone price signals, local flexibility procurement, and curtailment. See Congestion Management. (Regulation Art. 13; Directive Art. 32)

Connecting system operator (NC DR term) The system operator to whose system a Controllable Unit is directly connected. Responsible for: CU module grid prequalification, setting temporary limits, and data exchange about CU characteristics. Distinct from the procuring system operator (who buys the service) and the impacted system operator (whose grid is affected by activation). (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

Controllable Unit (CU) (NC DR term) The atomic building block of flexibility market participation. A single demand facility, generation module, storage facility, or ensemble thereof behind one metering/connection point. Examples: a battery, heat pump, EV charger, industrial process. Every flexibility resource must be registered as a CU before market participation. Small CU: ≤50 kW — receives simplified qualification procedures and is exempt from CU-level near real-time data requirements. See Network Code on Demand Response. (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

Countertrading Cross-border variant of redispatching — a TSO buys energy in one direction and sells in another to relieve a constraint.

CPO — Charge Point Operator Operator of EV (electric vehicle) charging infrastructure. In the context of Villkorade Avtal and OpenADR, CPOs are the primary customer class driving standardization: CPOs with large charging depots want to connect ahead of grid reinforcement, accept conditional curtailment rights in return, and must integrate with the DSO’s OpenADR VTN to receive activation signals. A CPO operating in multiple grid territories was the strongest argument for a single industry protocol — otherwise each DSO would implement differently. The Energiföretagen Sverige working group that produced the 2023 recommendation included both DSO and CPO representatives. In some cases, an aggregator or payment service provider may act as agent for the CPO in the activation flow. See OpenADR, Villkorade Avtal. (Source - Energiföretagen Branschrekommendation Conditional Grid Connections (2023))

CU Module Operator (IA DR role) The party responsible for operating the CU-module of the FIS (Flexibility Information System). Manages CU registration data and data exchanges in the CU registration processes (Processes 1–8 in the IA DR Phase 1 scope). One of several new role types introduced by the IA DR that sit above the CU-level roles defined in the NC DR itself.

CU Operator (NC DR term) The party responsible for operating one or more Controllable Units. Can be the customer themselves or a delegated third party.

Curtailment Reducing generation or load output, typically as a last resort when other Congestion Management measures are insufficient.

D

Datahanteringsverktyg (Swedish: centralt datahanteringsverktyg) “Central data management tool” — the government’s 2025 replacement for the elmarknadshubb concept. Assigned to Ei (coordinating) and Svenska kraftnät on 2025-09-18; proposal including legislative proposals and cost/timeline analysis due 30 September 2026. Four stated purposes: (1) improve flexibility and grid use via better data access; (2) streamline actor data exchange; (3) improve statistics and policy analysis; (4) simplify EU/national legislation implementation. Explicitly named as Sweden’s vehicle for implementing the NC DR’s FIS requirement. See Elmarknadshubb. (Source - Uppdrag Centralt Datahanteringsverktyg (2025))

Debiteringsgrundande effekt (Swedish) The specific peak power value (kW) determined from timmedeleffekter measurements and used as the basis for calculating a customer’s effektavgift charge. The calculation method varies by DSO — Ei PM2026:07 documented four approaches among the five supervised companies: single highest timmedeleffekt of the month (BTEA); average of the three highest timmedeleffekter occurring in different calendar days (Ellevio, GENAB, SHK); average of the five highest timmedeleffekter in different days (TVL). The choice of method materially affects both the price signal (predictability for customers) and revenue stability (for DSOs). A core design variable in effektavgift model development. (Source - Ei PM2026-07 Effektavgift Supervision)

Dedicated measurement device (DMD) A device linked to or embedded in an asset that provides demand response or flexibility services on the electricity market or to system operators. Introduced by Regulation 2024/1747 Art. 2(78). Enables TSOs, DSOs, and aggregators to use device-level metering for observability and settlement of flexibility services even where smart meters are not installed — removing a key barrier for flexibility participation at distribution level. Subject to customer consent; member states establish validation rules. Art. 7b of Regulation 2024/1747 creates a customer right to install DMDs.

DMD data can serve two quality tiers: settlement-grade (calibrated, certified, usable for billing and market settlement) and indicative (sufficient for operational decisions, baseline calculations, and DSO observability, but not for direct billing). Most flexibility applications require only indicative-grade — treating all applications as requiring settlement-grade is identified as a deployment barrier. See Submetering. (Regulation 2019/943 Art. 2(78), as amended by Regulation 2024/1747 Arts. 2(78) and 7b; Source - Electricity Market Design Reform Regulation (EU 2024-1747), Source - Submetering for Flexibility Services Comillas (2024))

Demand response (DR) A change in electricity consumption patterns in response to price signals (implicit) or explicit requests/commands (explicit). See Demand Response. (Directive Art. 2(20))

DER — Distributed energy resources Small-scale generation, storage, and flexible loads connected at the distribution level. Examples: rooftop solar, batteries, EV chargers, heat pumps.

Derogation Regulatory exception allowing departure from default rules (e.g., non-market-based congestion management, DSO storage ownership) where justified and approved by the national regulatory authority. Subject to periodic review. (Directive Art. 32(1), Art. 36)

Direktordrar (DO) “Direct orders” — the spot product on SWITCH for procuring flexibility at short notice (up to 2 days before delivery). No availability fee; FSP is paid only for actual activation. Two variants: DA (day-ahead, clearing D-1 09:30–10:30) and ID (intraday, clearing H-3, activation H-2). Functions as the last market mechanism before villkorade avtal. See also: SWITCH › Products, Glossary › Säsongstillgänglighet, Glossary › Tillgänglighetsordrar. (Source - SWITCH User Documentation (2026))

DIS — Dynamiskt inköpssystem “Dynamic procurement system” — E.ON’s method for continuously recruiting flexibility service providers (FSPs) to SWITCH markets while complying with LUF (public procurement law for utilities). DIS allows ongoing open recruitment without triggering direct-procurement thresholds. An alternative to time-limited procurement rounds; new FSPs can be onboarded even during an active market season. SWITCH is adapted to the DIS workflow. (Source - SWITCH User Documentation (2026))

Distribution transformer Transformer stepping voltage down from medium voltage (10–20 kV) to utilization voltage (230/400 V) for end customers. A key capacity bottleneck in the distribution grid as electrification increases. See Distribution Transformer.

DNDP — Distribution Network Development Plan (Swedish: nätutvecklingsplan) Mandatory DSO planning document covering the next 5–10 years (at least 10 years recommended). Required biannually under Directive 2019/944 Art. 32(3). The NC DR (Arts. 43–44) specifies mandatory content: planning framework, scenarios (5–10 year, coordinated with transmission plans), investment plans for assets and metering, and — where local services are relevant and cost-effective — a local services assessment with forecasted needs, cost-effectiveness methodology, and medium/long-term estimates with locational granularity. Minimum 6-week public consultation. NRA may request amendments.

The DNDP uses a three-pillar planning process: (1) scenario development, (2) grid capacity needs identification, and (3) project identification and selection. Solutions in pillar 3 may be grid reinforcement (new/upgraded lines, substations, transformers) or non-wire alternatives (flexibility procurement, villkorade avtal, storage).

ACER/CEER (2025) confirmed that DNDPs are “the primary source of DSOs’ data and analyses” for the FNA, and that DSOs should use the FNAM Tabell 15 format in the DNDP flexibility section. Submitted to the national regulatory authority (Ei in Sweden). In Sweden, Ei issues both a template and guidelines; DNDPs are published centrally on Ei’s website. Sweden is one of only 4 EU countries (with Denmark, Portugal, Slovenia) that quantify flexibility needs in DNDPs. See Distribution Network Development Plan. (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1), Source - ACER CEER DNDP Guidance (2025))

DSO — Distribution system operator Entity operating the medium- and low-voltage distribution grid. Must act as a neutral market facilitator. In Swedish: elnätsföretag. Examples: E.ON Energidistribution, Ellevio, Vattenfall Eldistribution. (Directive Art. 31–36)

Dubbelbeskattning (Swedish) “Double taxation” — a barrier to Vehicle-to-Grid deployment in Sweden. Electricity charged into an EV battery incurs energiskatt (energy tax) and moms (VAT). If that same electricity is subsequently discharged and sold via V2G, the receiving customer is taxed again on the same kWh. Skatteverket introduced a refund mechanism for energy tax on electricity fed back to the grid, but the refund applies only when discharging within the same concessionary network (koncessionsområde) where the electricity was originally charged. A consumer who charges in one area and discharges in another loses the refund right, constraining cross-area V2G and mobile use cases. (Source - KTH Thesis V2G Sweden 2024)

E

EAM — Energy Activation Market The cross-border mFRR activation market operated under ENTSO-E’s MARI platform. Svenska kraftnät launched the mFRR EAM on March 4, 2025, completing Sweden’s transition to pan-European mFRR activation following the 15-minute imbalance settlement period (EB GL Art. 53). Enables Nordic BSPs to submit mFRR energy bids that can be accepted by any TSO connected to the platform. See MARI, Balancing Markets. (Source - Svk Balancing Market Outlook 2030 (2024))

EB GL — Electricity Balancing Guideline Commission Regulation (EU) 2017/2195 establishing guidelines for electricity balancing. The primary EU regulation governing balancing markets. Key mandates: BSP/BRP role definitions (Arts. 16–17); TSO national terms obligation including cross-BRP aggregation rules (Art. 18); three European balancing platforms for FRR/RR exchange (Arts. 19–21); 15-minute imbalance settlement period (Art. 53); demand flexibility on equal terms with generation (Art. 3.1.f). Consolidated through 2022-06-19. See Source - EB GL (Regulation 2017-2195).

Ediel The Swedish electricity market’s standard for electronic information exchange between market actors, based on EDIFACT. All Swedish electricity market actors must pass Ediel tests and sign an Ediel-avtal with Svenska kraftnät before participating in the market; Svenska kraftnät operates Edielportalen as the test and registration system. Key message families: PRODAT (structural data — contracts, connections, customer info, meter data access requests Z01–Z18); UTILTS (meter value time series); DELFOR (plans and forecasts); APERAK (application-level acknowledgement); CONTRL (syntax-level acknowledgement). The Z-code series within PRODAT covers all process types; Z13–Z18 were added to support the Berättigad part meter data access mechanism (Z13 = request, Z14 = DSO confirm/deny, Z15 = termination notice from DSO, Z18 = berättigad part termination request). Contrast with the planned DHV/FIS — the future centralt datahanteringsverktyg that will complement or partially replace Ediel for flexibility-related data exchange. See Elmarknadshubb. (Source - Svensk Elmarknadshandbok 26A (2026))

Effektavgift / Effekttariff (Swedish) Capacity-based distribution tariff where part of a customer’s grid fee is determined by peak power consumption (kW or kWh during declared peak hours), not purely energy volume (kWh). Also called tidsindelad effektavgift when the applicable hours vary by time-of-day or season. Creates an implicit Demand Response incentive: customers who shift load away from peak hours reduce their capacity charge. As of 2024, only ~14% of Swedish DSOs use effektavgift and ~10% use time-differentiated variants (Ei Flexläget 2026). A known structural problem: when DSOs have incompatible effektavgift designs, standardized automated control signals from aggregators cannot reliably trigger the right behavior across multiple grid territories — this is the effekttariff integration gap identified by AFRY (2023). See Demand Response, Distribution System Operator. (Source - Ei Effektavgifter webb (2026), Source - AFRY Styr och Informationstjänster Konsumenter (2023))

Effektavgiftsgrundande mätvärde (Swedish) “Capacity-charge-basis meter value” — the one or more metered values a DSO uses to compute a customer’s effektavgift (e.g. the highest hourly mean power of the month, or the mean of the N highest hours/quarters). Defined in EIFS 2026:8 (2 kap.), which from 1 January 2027 requires DSOs that apply an effektavgift to display these values on mina sidor with date/time stamps and an explanation of how they feed the charge, and to show them (or a pointer) on the invoice — part of the effektavgift-transparency duty motivated by the surge in consumer confusion over how peak charges are calculated. Distinct from högsta mätvärde (the highest meter value in a series) — an effektavgiftsgrundande mätvärde is specifically the value(s) the charge is built on. See Demand Response, Source - EIFS 2026-8 Nätföretags Information till Elanvändare (2026).

Effekthandel Väst Local Flexibility Market in Gothenburg operated by Göteborg Energi Elnät and Mölndal Energi Elnät. Uses the NODES platform. Active from V2021/22 (now in its 4th+ season). One of three active Swedish flex markets as of 2025. See Effekthandel Väst. (Source - Sweco Kartläggning av lokala flexibilitetsmarknader (Ei, 2025))

Effektiviseringsincitament / effektiviseringskrav (Swedish) The cost efficiency incentive in Ei’s revenue cap regulation (intäktsramsreglering) for Swedish DSOs. Benchmarks each DSO’s costs against peers and translates the result into an adjustment to the next supervisory period’s revenue frame. For RP4 (2024–2027), only påverkbara (controllable operating) costs are benchmarked with a minimum 1% annual efficiency deduction. For RP5 (2028–2031), Ei is transitioning to a TOTEX framework covering both capex and opex — see Enstegsmetoden. Key confirmed RP5 design parameters: full cost coverage at the third quartile (Q3, relative threshold); no separate general efficiency requirement; 8-year realiseringstid. (Source - Ei Effektiviseringsincitament Webb (2026-05-12), Source - Ei Inriktning intäktsramar 2028-2031 (2025))

Effektprognoser.se Digital portal providing municipal-level power demand forecasts for Skåne municipalities, produced by Region Skåne as part of the Skånes Effektkommission programme. Data underlying Source - Effektprognoser Skåne Region Skåne (2025): sector-by-sector power (MW) and electricity (MWh) demand for 2022–2040 for all 33 Skåne municipalities. Useful for DSO DNDP planning, municipal spatial planning, and investor establishment analysis. Uses the Energiforsk lathund methodology (Energiforsk 2024:1006). (Source - Effektprognoser Skåne Region Skåne (2025), Skånes Effektkommission)

Ei — Energimarknadsinspektionen Swedish Energy Markets Inspectorate. The national regulatory authority (NRA) overseeing DSO flexibility procurement, network tariffs, and market design.

Elberedskap (Swedish) Emergency preparedness for electricity supply — Sweden’s policy framework for maintaining grid function during crises and war. Svenska kraftnät acts as elberedskapsmyndighet (grid preparedness authority). Relevant to Island Operation because ö-drift capability is explicitly funded through elberedskapsanslag (preparedness grants), providing an alternative revenue channel for microgrid/islanding projects alongside DSO cost recovery. Both the Arholma (Vattenfall Eldistribution) and Simris (E.ON Energidistribution) projects reference elberedskap as a motivation. The Skåne feasibility study (2023) found no suitable island object but assessed elberedskapsanslag + ancillary service revenue stacking as the viable funding model where a project does exist. See Island Operation. (Source - Svk Om Ö-drift (2025))

Ellagen Swedish Electricity Act (1997:857) — the primary legislation governing the Swedish electricity market. Subject to amendments for CEP transposition. Key provisions for flexibility: DSOs must procure non-frequency ancillary services market-based (3 kap. 4 §), DSOs cannot conduct non-network business (3 kap. 12 §), pilot tariffs allowed (4 kap. 31 §), network development plans required (3 kap. 16–17 §§).

Elmarknadshubb (Swedish) The original name for Sweden’s planned central electricity market data hub. Svenska kraftnät was assigned to build it in 2015 (M2015/2635/Ee); the project paused in 2020 waiting for legislation. In September 2025, the government cancelled the old mandate entirely and issued a new assignment — a centralt datahanteringsverktyg — jointly to Ei (coordinating) and Svk, with a proposal due 30 September 2026. The new tool starts from the current market model, not a supplier-centric redesign. See Elmarknadshubb for full history. (Source - Projektstatus Elmarknadshubben (2021), Source - Uppdrag Centralt Datahanteringsverktyg (2025))

Elnätsföretag (Swedish) Grid company / distribution system operator (DSO). See DSO.

EMDO — Electricity Market Data Ontology Svk‘s published RDF/Turtle ontology for electricity-market data — a machine-readable vocabulary defining reserve products and directions, bidding zones and interconnectors, production types, auction rounds, forecast horizons, units of measure, country codes, and trade-action directions. Paired with the BASE ontology (general concepts); both published openly at data.svk.se and used to describe Svk’s open datasets. A semantic data model — it defines what market data means, distinct from the device-communication protocols in Flexibility Communication Protocols; same family as the IEC CIM but narrower (market data) and Svk-authored. Relevant to the structured, machine-readable data the NC DR FIS and the DHV require. See Source - Svk EMDO BASE Ontologier (2026).

Energitjänsteföretag (Swedish) The Edielportalen label for a Berättigad part — the same actor type but as registered in Svenska kraftnät‘s test and registration system. Used interchangeably with berättigad part in practice. The distinction is purely administrative: berättigad part is the legal/handbook term; energitjänsteföretag is the technical identifier on Edielportalen.

Energy sharing The self-consumption by active customers of renewable energy either (a) generated or stored offsite or on sites between them by a facility they own, lease or rent; or (b) the right to which has been transferred to them by another active customer. Introduced as a new consumer right by Art. 15a of Directive 2024/1711, with a transposition deadline of 17 July 2026. Key parameters: eligible for households, SMEs, and public bodies; facility capacity up to 6 MW; within the same bidding zone or a more limited geographical area; shared electricity deducted from total metered consumption within the imbalance settlement period. Distinguished from collective self-consumption (Directive 2019/944, Art. 15) and renewable energy communities (RED III, Art. 22) but complementary. (Directive 2019/944, Art. 2(10a) and Art. 15a, as inserted by Directive 2024/1711; Source - Electricity Market Design Reform Directive (EU 2024-1711))

Energy storage Technologies that absorb electricity and release it later. Includes batteries, pumped hydro, thermal storage, hydrogen, flywheels. See Energy Storage. (Directive Art. 2(59), Art. 36)

Enstegsmetoden (Swedish) “The one-step method” — Ei’s chosen TOTEX application method for the RP5 (2028–2031) efficiency incentive, confirmed December 2025. Process: (1) before the supervisory period, benchmarking compares companies’ historical TOTEX efficiency and produces an individual efficiency percentage for each DSO; (2) after the period, this percentage is applied to the company’s actual total cost outturn during the period; (3) the result adjusts the next period’s revenue frame. The company knows in advance how its revenue frame will be affected as a share of costs, but the absolute amount depends on actual costs incurred. Distinguished from Tvåstegsmetoden (two-step, where a pre-period requirement is set and then measured against actual post-period costs) and Norsksvenska metoden (pre-period score applied to actual post-period TOTEX, zero-sum within the industry). (Source - Ei Effektiviseringsincitament Webb (2026-05-12))

ENTSO-E — European Network of Transmission System Operators for Electricity TSO coordination body. Joint author (with EU DSO Entity) of the NC DR proposal. Develops network codes and system adequacy assessments.

ERAA — European Resource Adequacy Assessment ENTSO-E’s biennial pan-European study assessing whether the electricity system will have sufficient generation to meet demand. Uses probabilistic scenarios (National Trends / Central Reference as the base case). Svk uses ERAA scenarios as input to the system-flexibility component of Sweden’s Flexibility Need Assessment. ERAA 2025 is the source for Svk’s 2030/2035 capacity and DSR projections used in FNA 2026. (Source - FNA Webinar 7 (2026-03-16))

E-Redes Portugal’s sole distribution system operator (DSO), formerly EDP Distribuição (renamed 2021). Operates ~100% of Portugal’s distribution network. Produces the PDIRD-E and operates the FIRMe local flexibility market via the Piclo platform. Equivalent role to the six large Swedish DSOs combined (Vattenfall, E.ON, Ellevio, etc.), but as a single national operator. See Flexibility Market › FIRMe, Source - ERSE Parecer PDIRD-E 2024.

ERSE — Entidade Reguladora dos Serviços Energéticos Portugal’s energy markets NRA (National Regulatory Authority). Issues binding opinions on E-Redes’ PDIRD-E, runs mandatory public consultations, and can require amendments to the plan. ERSE’s role is stronger than Sweden’s Ei: Ei is ex-post (tillsyn) only and cannot compel DSO plan changes; ERSE issues a binding opinion that must be addressed before the plan receives government approval. (Source - ERSE Parecer PDIRD-E 2024)

eSett (eSett Oy) — Nordic imbalance settlement company The TSO-owned (Svenska kraftnät, Fingrid, Statnett, Energinet) entity that performs imbalance settlement, invoicing, and collateral management for every BRP and BSP in SE/FI/NO/DK — the region’s Imbalance Settlement Responsible (ISR) under the EB GL, operating the Nordic Balance Settlement (NBS) model on a 15-minute ISP (Sweden since March 2025). Defines the VoAA (Value of Avoided Activation) + Incentivizing Component compensation architecture for cross-BRP independent aggregation. Sweden is the only Nordic country with no national datahub, feeding eSett bilaterally via Ediel; the planned DHV will become Sweden’s MDA (Metered Data Aggregator) and absorb eSett’s Sweden-specific reconciliation/profiling. See eSett, eSett’s Swedish Role Through NC DR Implementation. (Source - Nordic Imbalance Settlement Handbook v5.2 (2025))

EU DSO Entity European association of distribution system operators. Joint author (with ENTSO-E) of the NC DR proposal. Coordinates DSO positions on network codes.

Explicit flexibility / explicit demand response Flexibility activated through direct dispatch signals — the resource owner pre-commits and an aggregator or system operator activates. Corresponds to market-based flexibility. Contrast with implicit flexibility.

F

FCR-D — Frequency Containment Reserve – Disturbance Balancing product activated automatically within seconds to arrest frequency after a large disturbance (e.g., generator trip). Upward only. See Balancing Markets.

FCR-N — Frequency Containment Reserve – Normal Balancing product activated automatically to maintain continuous frequency regulation around 50 Hz. Symmetric (up and down). See Balancing Markets.

FFR — Fast Frequency Reserve Ultra-fast frequency containment reserve responding within 0.7–1.3 seconds — faster than FCR — designed for grids with high inverter-based generation and low rotational inertia. Provided primarily by batteries and fast-responding hydro. In Sweden, FFR costs are currently recovered through the grid tariff (subscribers pay a fixed fee). Svenska kraftnät plans to transition FFR to a D-1 market in 2027, enabling competitive price discovery. See Balancing Markets. (Source - Svk Balancing Market Outlook 2030 (2024))

FIRMe — Flexibilidade Integrada em Regime de Mercado (Portuguese) “Integrated Flexibility in a Market Regime” — E-Redes’ local distribution flexibility procurement programme in Portugal. Operates on the Piclo platform. Three products: Dynamic (planned maintenance windows), Secure (congestion management estimates), Restore (post-fault network restoration). One of only 7 fully operational live local flexibility markets in Europe as of late 2025. Second auction (Nov 2025): 23 providers, 163 qualified assets, 82.9 MW, ~7× bid growth vs first auction. See Flexibility Market › FIRMe, Source - E-Redes FIRMe Programme.

FIS — Flexibility Information System (NC DR term) Mandatory national information system for all flexibility market participation, comprising a CU module (resource registration) and an SP module (provider qualification). Requires a single common access point with both GUI and API (ETSI-CEN-CENELEC standards). Data portability is required — all data must be exportable in structured, machine-readable format to prevent vendor lock-in. Register-once principle: SPs and system users enter data once; all SOs see it. Must reach full interoperability within 4 years of NC DR entry into force. Existing platforms (SWITCH, NODES) may continue as transitional IT solutions until the national FIS is implemented; must be updated or replaced within 2 years of FIS T&C approval. Also called flexibility register in earlier NC DR drafts. See Network Code on Demand Response. (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

Flaskhalsinkomster (Swedish) — Congestion revenues Revenues collected by transmission system operators when electricity prices differ between bidding zones — a direct result of transmission congestion between areas. Under EU rules (CACM Regulation and EMD Reform), these revenues must be used for specific purposes: reducing grid tariffs, maintaining or increasing cross-zonal capacity, or funding investment in interconnectors and grid reinforcement. The EU nätpaketet (network package, Commission proposal December 2025) proposes to restrict how member states can apply these revenues beyond these categories. Sweden has objected strongly, arguing that countries with internal price zones (SE1–SE4) should be able to direct the revenues to fossil-free dispatchable electricity production and grid support. See Congestion Management, Svenska kraftnät. (Source - Svk Utlandskablar Uppdrag Reviderad Investeringsplan (2026))

Flexible connection agreement (FCA) / villkorat avtal EU legal definition (Directive 2024/1711, Art. 2(24c)): “A set of agreed conditions for connecting electrical capacity to the grid that includes conditions to limit and control the electricity injection to and withdrawal from the transmission network or distribution network.” Directive 2024/1711 Art. 6a requires national regulatory authorities to develop mandatory frameworks for TSOs and DSOs to offer flexible connection agreements in areas with limited/no network capacity; transposition deadline 17 July 2026. The NC DR (Art. 31) adds three binding operational requirements: (1) treated as firm connections in needs assessments; (2) activation must coordinate with market-based procurement; (3) system users holding flexible CAs retain full rights to participate in local services and balancing markets.

FCA design spans 10 dimensions across four meta-categories: temporal (advance notice, duration), locational/product (DER types, trigger conditions), network connection criteria (guaranteed capacity, access priority — first-come-first-served vs. LIFO vs. pro-rata), and activation/commercial (compensation, activation method). Key incompatibility risks with local markets: ex-post curtailment notification blocks day-ahead market participation; emergency activation with no advance notice makes combined use infeasible; LIFO priority undermines bid reliability. See Flexible Connection Agreements, Villkorade Avtal. (Source - Electricity Market Design Reform Directive (EU 2024-1711), Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1), Source - DSO Service Acquisition Interaction Comillas (2024))

Flexible customer (NC DR term) A customer contributing to service provision via a service provider, whether through demand response, storage, or generation.

Flexibility EU legal definition (Regulation 2024/1747, Art. 2(79)): “The ability of an electricity system to adjust to the variability of generation and consumption patterns and to grid availability, across relevant market timeframes.” — The first codified EU legal definition of flexibility, introduced by the Electricity Market Design Reform 2024 in force from 16 July 2024. Working definition for this wiki: the ability to adjust electricity generation, consumption, or storage in response to grid needs — whether for balancing, congestion management, or power quality. The central concept of this wiki. See Flexibility. (Source - Electricity Market Design Reform Regulation (EU 2024-1747))

Flexibility market A market where system operators (typically DSOs) procure flexibility from distributed resources to manage local grid constraints. The CEP requires market-based procurement as the default (Directive Art. 32). See Flexibility Market.

Flow-based capacity calculation Method for determining available cross-zonal transmission capacity based on actual physical power flows (Kirchhoff’s laws), rather than simplified bilateral exchanges (NTC). Adopted in the Nordics October 2024. See Flow-Based Capacity Calculation. (Regulation Art. 14–16)

FNA — Flexibility Needs Assessment (Swedish: Flexibilitetsbehovsbedömning / Flexibilitetsbehovsanalys) Mandatory biennial national assessment of electricity system flexibility needs. Primary EU legal basis: Art. 19e of Regulation (EU) 2019/943 as amended by Regulation 2024/1747 (Electricity Market Design Reform 2024). Methodology established by ACER Decision 05-2025 (FNAM — FNA Methodology, published 25 July 2025). Two dimensions: system flexibility (balancing) and network flexibility (congestion/voltage). Reporting chain: lokalnät → regionnät → Svenska kraftnät → ACER + Commission. FNA is a needs description only — it does not determine who procures flexibility or how costs are allocated. Sweden’s first FNA is due July 2026. See Flexibility Need Assessment. (Source - Electricity Market Design Reform Regulation (EU 2024-1747))

FNAM — FNA Methodology The FNA Methodology established by ACER Decision 05-2025 (Annex I). Defines data types, formats, analytical methods, target years, geographic granularity, and coordination requirements for the Flexibility Need Assessment process. Applicable as national law in all EU Member States from 25 July 2025.

Förmögenhetsbevarande princip (Swedish) “Wealth-preserving principle” for capital asset valuation: assets are valued at original acquisition cost (historiska anskaffningsvärden), adjusted for general inflation (KPI). Replaces the kapacitetsbevarande principen in Ei’s revenue regulation from RP5 (2028–2031) onward. Achieves net present value neutrality — DSO return matches the allowed WACC by construction. See intäktsramsreglering, Source - Ei Inriktning intäktsramar 2028-2031 (2025).

FSP — Flexibility Service Provider (also: flexibilitetsleverantör in Swedish) An entity offering flexibility to a system operator (DSO or TSO) through a flexibility market. In CoordiNet and Swedish market practice, FSPs include district heating companies, industrial loads, aggregators (of heat pumps, EV chargers, batteries), individual large consumers, and reserve power generators. Equivalent to the NC DR’s Service Provider (SP) role. (Source - CoordiNet D4.7.2 Swedish Demonstration (2022))

In Svk’s kompensationsmodell proposal (submitted September 2, 2024), FSP was proposed as a new statutory role — deliberately broader than “aggregator” to encompass all flexible resources (consumption, production, storage). Svk recommended renaming the existing “leverantör av aggregeringstjänster” to FSP/flexibilitetsleverantör. The FSP concept requires a central information system (estimated 4–6 years). See Aggregation › Svk’s compensation model proposal (2024). (Source - Elmarknadsrådet Meetings 3 and 4 2024 (Sep-Nov))

G

Garanterad överföringskapacitet (Swedish) Guaranteed transfer capacity — the power level always available to a customer under a villkorat avtal, regardless of grid conditions.

Grid prequalification (NC DR term) Process where connecting and impacted system operators verify that activating an SPU or SPG won’t compromise grid safety in their systems. Runs before or parallel to product prequalification; must not delay product prequalification. Results in one of three statuses (Art. 49): (1) “grid prequalification approved” — activation respects operational security limits; (2) “grid prequalification conditionally approved” — only under specified time and/or quantity conditions; (3) “grid prequalification not approved” — requires full justification including explanation of why temporary limits cannot address the issue. If a system operator does not communicate results before prequalification completes, grid prequalification is automatically approved. Annual reporting to NRA on non-approved and conditional cases. (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

H

HHI — Herfindahl-Hirschman Index A measure of market concentration calculated by summing the squared market shares of all participants. Used to assess competition levels; higher HHI indicates a more dominant firm (or few firms). Sweco (2025) recommends applying HHI to local flex markets to measure FSP concentration risk — given that a few large energy companies dominate activated volumes. (Source - Sweco Kartläggning av lokala flexibilitetsmarknader (Ei, 2025))

HVO — Hydrogenated Vegetable Oil Renewable drop-in fuel produced by hydrogenating vegetable or animal fats. Used as a substitute for diesel in combustion engines and industrial burners (elpannor). In the context of local flexibility markets, HVO enables fuel switching flex: an industrial elpanna can switch from consuming electricity to burning HVO for heat production, instantly reducing grid demand. Provides effectively unlimited flexibility endurance as long as the HVO supply can be replenished. At Kinnekulle Energi’s Götene market, Dafgårds operates a 5 MW elpanna on HVO fuel switching — the primary anchor FSP resource. (Source - Flexsäsongen i Götene 2024-2025 Sweco)

HVDC — High-voltage direct current Transmission technology used for long distances, submarine cables, and interconnecting asynchronous grids. Key Nordic interconnectors include Baltic Cable, Fenno-Skan 1–2, Konti-Skan 1–2, NordBalt, SwePol. Planned expansions (Konti-Skan Connect, Aurora Line 2, Fenno-Skan 3) were paused by the Swedish government in May 2026 as leverage in EU nätpaketet negotiations. See Electric Power Transmission, Svenska kraftnät.

I

IA DR — Implementing Act on Demand Response Companion EU implementing regulation to the Network Code on Demand Response, developed jointly by ENTSO-E and EU DSO Entity under Arts. 23–24 of Directive 2019/944. Specifies the data exchange processes, information model, and role definitions for how CU and SP registration, baseline calculation, and flexibility quantification are handled in the FIS. The IA DR is structured in two phases: Phase 1 (15 processes; submitted to EC Q2 2025) and Phase 2 (3 additional processes; submitted Q4 2025); entry into force estimated 2027. Introduces new role types not present in the NC DR text: CU Module Operator, SP Module Operator, Baseline Calculator, Baseline Provider, Quantification Aggregator. Based on a 5-layer EU reference model (business, function, information, communication, component). See Network Code on Demand Response. (Source - Svk IA DR Webinar Part 1 (2025))

IA compensation model The commercial arrangement governing how an independent aggregator (IA) compensates the customer’s incumbent supplier or BRP for imbalances caused by DR activations. Three models identified in EU practice: pass-through — the IA shares activation revenues with the supplier per a pre-agreed formula (dominant where BRPs have market leverage; aligns incentives but requires negotiation); flat fee — supplier receives a fixed payment per activation regardless of market outcome (simpler; IA retains upside/downside risk); hybrid — combines pass-through and flat-fee elements (emerging as balancing compromise). Choice of model shapes FSP incentives and the practical accessibility of independent aggregation. Governed by Art. 4 of Regulation 2019/943 (as amended) and national T&Cs developed under the Network Code on Demand Response. See Aggregation › IA compensation models and balance responsibility — EU typology. (Source - Aggregators DR Relationships Comillas (2025))

Impact factor (PTDF — Power Transfer Distribution Factor; Swedish: påverkansfaktor) The fraction of a resource’s power change that affects flow at a specific constrained substation. Used in SWITCH and CoordiNet to create geographically weighted merit-order lists: a bid price is divided by the impact factor to calculate cost per MW of congestion relief at the target substation. Enables the DSO to procure flexibility from resources with the highest electrical impact on the specific bottleneck, not just the lowest bid price. Defined as time series (can be updated hourly; CoordiNet used static values for peak consumption patterns). (Source - CoordiNet D4.7.2 Swedish Demonstration (2022))

IEC 60870-5-104 Communication protocol for telecontrol, used for real-time data exchange between DSO systems and customer equipment in Villkorade Avtal implementation.

IEC 61850 International standard for communication in electrical substations and grid automation.

Impacted system operator (NC DR term) A system operator whose grid may be affected by the delivery of a flexibility service, but who is not the party procuring it. For example, a regional DSO (regionnät) whose cable becomes loaded when a local DSO (lokalnät) activates flexibility in its own area. Impacted SOs have the right to perform grid prequalification on SPUs/SPGs connected to other SOs’ systems that could affect their grid. Distinct from connecting system operator (where the CU is connected) and procuring system operator (who buys the service). (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

Implicit flexibility / implicit demand response Flexibility achieved through price signals — the consumer voluntarily adjusts behavior in response to tariffs or real-time prices. Corresponds to rules-based flexibility. Contrast with explicit flexibility.

Independent aggregator See aggregation.

Inmatningsabonnemang (Swedish) “Grid injection subscription” — a contract with the DSO that permits electricity to be exported (injected) into the grid from the customer’s connection point. Required for any Vehicle-to-Grid deployment: without an inmatningsabonnemang, an EV can only draw power from the grid (G2V), not discharge into it (V2G). Also required for solar PV microproducers. The need to establish an inmatningsabonnemang for each V2G installation is one source of administrative friction, particularly for mobile resources. (Source - Power Circle V2X Synthesis 2024)

ISO 15118-20 International standard for communication between an electric vehicle and the charging equipment (EVSE). Version 20 (published 2022) extends the standard to cover bidirectional charging (ISO 15118-20 = the enabling standard for V2G at the charging interface). Defines Plug & Charge authentication and the protocol layer that conveys vehicle state-of-charge and charging/discharging commands between car and wallbox. The DC variant of ISO 15118-20 is more mature than the AC variant — the AC standard lacks a standardized layer for state-of-charge data, which limits smart-charging optimization over AC connections. See Vehicle-to-Grid. (Source - Power Circle V2X Synthesis 2024)

Intäktsramsreglering (Swedish) Revenue cap regulation — the regulatory framework that sets the maximum revenue each DSO can collect from customers over a four-year period. Determined by Ei. Creates a CAPEX bias because capital investments earn regulated return while flexibility is OPEX. See CAPEX bias. (Source - Ei Flexibility in Distribution Grids (2023))

Intersection (Swedish: snitt) A transmission bottleneck boundary between Bidding Areas. Sweden has three: Intersection 1 (SE1↔SE2), Intersection 2 (SE2↔SE3), Intersection 4 (SE3↔SE4). Note: Intersection 3 is an internal east-west boundary within SE3.

K

Kapacitetsåtgärd (Swedish) A temporary flexibility procurement instrument developed by Svenska kraftnät (announced November 2024) to bridge grid connection delays. When a new connection request cannot be accommodated within the current network, Svk procures a flexible resource to provide the system capability that the missing network investment would have provided. The resource contracts are time-limited (~10 years) until the network is built; financed through the anslutningsavgift (connection fee); open to both new and existing flexible resources; resources may participate in other markets (intraday, local flexibility) when Svk has no active need. The instrument is not a substitute for network expansion but a bridge tool. A pilot was announced for Västra Götaland (decision around year-end 2025). (Source - Elmarknadsrådet Meetings 3 and 4 2024 (Sep-Nov))

Kapacitetzon / intressentpool (Swedish) “Capacity zone / interest pool” — new connection process concepts from Svenska kraftnät‘s April 2026 anslutningsprocess review. A kapacitetzon is a defined geographic area with an associated available transmission/connection capacity; Svk targets opening the first zone autumn 2026. An intressentpool allows potential customers to formally signal connection demand before the application queue opens, including PPA-matching for co-locating producers and consumers. Both concepts require legislation for the formal anvisningssystem (allocation system). The introduction of kapacitetszoner replaces the current first-come-first-served application logic with a capacity-zone framework for queue management. (Source - Elmarknadsrådet Meeting 2 May 2026)

Kinnekulle Energi Swedish DSO operating Götene Flex — one of Sweden’s active local flex markets (from V2023/24). No public market data available. (Source - Sweco Kartläggning av lokala flexibilitetsmarknader (Ei, 2025))

Kalkylränta (Swedish) The allowed rate of return (discount rate) on capital that Ei sets for each DSO as part of the intäktsramsreglering. Calculated using real WACC and CAPM. From RP5 (2028), Ei moves to an 8-year historical lookback for all parameters, replaces KPIF with KPI as the inflation index, and fixes the debt ratio at 50%. See Source - Ei Inriktning intäktsramar 2028-2031 (2025).

Kapacitetsbevarande princip (Swedish) “Capacity-preserving principle” for capital asset valuation: assets are marked to market using a normvärdes list and sector-specific price index (BKI). Current approach in Swedish DSO revenue regulation (until RP4/2027). Being replaced by förmögenhetsbevarande principen from RP5 (2028) to eliminate systematic over/under-return risk caused by index divergence.

Kirchhoff’s laws Physical laws governing current and voltage in electrical circuits. The basis for Flow-Based Capacity Calculation — power follows physical paths, not contracted paths.

L

LFC area — Load-Frequency Control area (SO GL term) A geographic subdivision of a synchronous area in which a TSO implements the frequency restoration process. In the Nordics, each TSO typically operates its own LFC area. (SO GL Art. 3(11), Art. 141)

LFC block — Load-Frequency Control block (SO GL term) One or more LFC areas for which FRR and RR are dimensioned and managed. The Nordic synchronous area typically operates as a single LFC block. (SO GL Art. 3(12), Art. 141)

Limited energy reservoir (SO GL term) An energy storage device (e.g., battery, flywheel) whose capacity limits the duration of FCR provision. In the Nordic synchronous area, FCR providers with limited energy reservoirs must sustain full activation for 15-30 minutes during alert state, and recover within 2 hours. Critical provision for battery participation in Balancing Markets. (SO GL Art. 156(8-13))

Local services (NC DR term) Flexibility services procured by DSOs (or TSOs at distribution level) for congestion management, voltage control, or other local grid needs. The NC DR uses product verification (lower-barrier, ex-post) as the default qualification process for local services, rather than full prequalification.

Local services market See flexibility market. The NC DR uses “local services” as the preferred term for distribution-level flexibility procurement.

LFM-h / LFM-p / LFM-e (NC DR terms) The three product types for local flexibility markets defined in the Network Code on Demand Response, distinguished by procurement horizon:

• LFM-h (hour-ahead): spot product for urgent real-time needs; activated up to 1 hour before delivery; energy-only payment (no availability fee).
• LFM-p (period-ahead): medium-horizon product; activated 1 day to several days ahead based on planned maintenance or forecast congestion; availability payment optional.
• LFM-e (extended): long-horizon availability product; procured weeks to months in advance for structural, predictable congestion; seasonal availability payment required. Swedish market equivalents: SWITCH products map roughly as Direktordrar ≈ LFM-h, Tillgänglighetsordrar ≈ LFM-p, Säsongstillgänglighet ≈ LFM-e. The NC DR allows two procurement models per product type: Model A (DSO sets availability rate, FSPs bid activation price only) and Model B (FSPs bid both availability and activation prices competitively). See LFM Standard Product Design — Model A vs B Recommendations for DSOs, Flexibility Market, Network Code on Demand Response.

Lösningsneutralitet (Swedish) “Solution neutrality” — the principle that the regulatory framework creates no systematic preference between grid investment (CAPEX) and flexibility procurement (OPEX) as means of managing congestion or meeting grid needs. Achieved under the TOTEX approach in Ei’s RP5 (2028–2031) revenue regulation reform: a DSO that handles congestion by buying flexibility services (opex) scores identically in the benchmarking framework to one that builds new grid (capex). Directly addresses the CAPEX bias identified as a structural barrier to flexibility market development. (Source - Ei Inriktning intäktsramar 2028-2031 (2025))

M

MARI — Manually Activated Reserves Initiative ENTSO-E platform for cross-border exchange of manually activated frequency restoration reserves (mFRR). Enables participating TSOs to import and export mFRR energy bids pan-European. The Nordic TSOs (Svk + Statnett + Fingrid + Energinet) announced on November 17, 2025 a joint connection target of Q1 2027. Connection will increase mFRR market depth and liquidity. See EAM, Balancing Markets, Nordic Balancing Model. (Source - Svk Balancing Market Outlook 2030 (2024))

Market-based flexibility Flexibility procured through competitive markets with price discovery. The CEP default for both DSO procurement (Directive Art. 32) and TSO redispatching (Regulation Art. 13). Contrast with rules-based flexibility.

MaxUsage (NODES MaxUsage™, “virtual fuse contract”) A NODES-trademarked local flex market product where the FSP and DSO jointly set a ceiling on the FSP’s power demand during specified high-load hours; the FSP is paid for keeping below it, with minimal administration. Validated by counting the proportion of measurement values below the threshold — compensation is for the consistent behavioural change, not a specific activation event. Developed to widen participation, above all for EV charging. Used in Effekthandel Väst (ShortFlex/LongFlex/MaxUsage product family) and in early seasons of Kinnekulle Flex. The value reference is set by analysing historical consumption before contracting; the difference between the reference value and the max value defines the contracted flexibility quantum. Limitation: energy-efficiency or behavioural change between seasons erodes that historical reference (the “normal” drops below the reference value, confounding validation). Mixed record: scaled successfully at Effekthandel Väst (dominant activation product by volume from Dec 2024), but removed from Kinnekulle Flex from 2026–27 — both for reference drift and because time-differentiated power tariffs (EIFS 2022:1) deliver the same implicit load-shifting signal to all users at scale. The fix for the drift is to anchor the cap to a firm contractual level rather than historical consumption (see B5). (Source - Effekthandel Väst Produkter och MaxUsage (NODES, 2024), Source - Flexsäsongen i Götene 2024-2025 Sweco, Source - Effekthandel Väst Onboarding Info (2025-26))

MBMA — Meter Before, Meter After A baseline method used in SWITCH where the platform calculates the baseline automatically from the resource’s own metering data, without requiring the FSP to upload a reference plan. One of three approved baseline methods in SWITCH (alongside FSP-provided plan and zero-reference). Removes a key operational burden for FSPs who have reliable metering. (Source - SWITCH User Documentation (2026))

MCP — Market Communication Platform NODES‘s real-time TSO-DSO trade coordination interface. When a buy order is submitted in the flexibility market tool (FMT), the MCP routes a trade approval request to affected system operators before activation. The SO responds with a traffic light signal: Green (no grid impact — proceed), Yellow (impact possible — accepted with conversation; cancellable under strict rules), or Red (critical impact — rejected; negotiation phase opens). Pre-configured node limits can trigger the MCP flow automatically above a threshold. Operationalizes the Network Code on Demand Response‘s temporary limits concept in a real-time platform layer. See NODES › MCP traffic light — TSO-DSO coordination, TSO-DSO Coordination — The Central Design Problem. (Source - NODES FPM Presentation (2026))

Metering point The location where electricity flow is measured. CU registration in the NC DR is tied to metering/connection points.

mFRR — Manual Frequency Restoration Reserve Balancing product activated manually within ~15 minutes. Replaces aFRR for longer imbalances. Bidirectional. See Balancing Markets.

Minimum bid size The smallest quantity a resource can offer in a flexibility or balancing market. A key NC DR debate: 0.1 MW (enables household-scale DER participation) vs 1 MW (favors industrial/aggregated resources). No consensus as of ACER’s 2025 recommendation.

Modbus Communication protocol for real-time metering and device communication. Used in Villkorade Avtal technical requirements.

N

Nätpaketet (Swedish) — EU network package Informal name for the European Commission’s legislative proposal on electricity network planning and investment, published December 2025. Under Council negotiation from December 2025 onward. Key elements as understood from Swedish political debate: (1) proposed restrictions on how member states may use flaskhalsinkomster (congestion revenues); (2) proposed centralization of electricity system planning at EU level. Sweden has been strongly critical on both counts. As of May 2026, Sweden’s government ordered Svk to pause three planned HVDC interconnector projects (Konti-Skan Connect, Aurora Line 2, Fenno-Skan 3) as leverage in the negotiations. See Svenska kraftnät, flaskhalsinkomster. (Source - Svk Utlandskablar Uppdrag Reviderad Investeringsplan (2026))

Nationella villkor (Swedish — “national terms and conditions”) The binding national rules that Sweden’s ~170 DSOs and Svenska kraftnät must jointly develop under the Network Code on Demand Response (NC DR). Once adopted, nationella villkor have the same legal status as national föreskrifter (regulatory provisions). The NC DR requires all DSOs and Svk to submit a joint proposal for a national development process to Ei within 3 months of the regulation entering into force; Ei then has 2 months to approve the process proposal. Subject areas span approximately 7 domains, including SP qualification, baselines, FIS implementation, TSO-DSO coordination, local market rules, DNDPs, and energy storage. The development of nationella villkor is unprecedented in Sweden — DSOs have never previously had a statutory role in drafting binding sector regulation. Energiföretagen Sverige‘s Eldistributionsrådet proposed a hybrid governance model (open to all DSOs, not just Energiföretagen members) in April 2024. See Network Code on Demand Response, Energiföretagen Sverige. (Source - Energiföretagen NC DR National Conditions Webinar (2024))

Natural monopoly An industry where single-provider operation is most efficient due to infrastructure costs. Both transmission and distribution are natural monopolies, which is why they are regulated and unbundled from competitive activities. See Natural Monopoly.

NC DR — Network Code on Demand Response Forthcoming EU regulation establishing binding rules for demand response, energy storage, distributed generation, and demand curtailment market participation. See Network Code on Demand Response.

NODES Flexibility market platform developed by NODES AS (Norwegian company, Lysaker). One of two active platforms in the Swedish flexibility market — the other being SWITCH. Used by sthlmflex (closed), JämtFlex (closed), and Effekthandel Väst (active). As an independent third-party platform, NODES is the natural choice for multi-DSO markets requiring a neutral operator. See NODES. (Source - Sweco Kartläggning av lokala flexibilitetsmarknader (Ei, 2025))

Non-fossil flexibility Flexibility provided by demand response, energy storage, and dispatchable renewable generation — as distinguished from fossil-fuel-based flexibility (gas peakers, diesel backup). The EMD Reform 2024 introduces an indicative national objective for non-fossil flexibility: each member state must define this objective within 6 months of completing their first FNA (Art. 19f, Regulation 2024/1747). Where investment is insufficient, member states may apply capacity payment support schemes for non-fossil flexibility resources (Arts. 19g–h). For Sweden, the national objective would be due January 2027 (assuming first FNA approved July 2026). (Regulation 2019/943, Arts. 19f–19h as inserted by Regulation 2024/1747; Source - Electricity Market Design Reform Regulation (EU 2024-1747))

NordSyd Svenska kraftnät‘s flagship initiative to increase north-south transmission capacity through four parallel reinforcement branches (Uppsala, Västerås, Karlstad, Hallsberg). See NordSyd.

Norrmodellen A working method and collaboration model for municipal-level mapping of current and future power and energy needs (both withdrawal/uttag and injection/inmatning) in Norrbotten. Administered by Länsstyrelsen Norrbotten under the AGON (Accelererad Grön Omställning) umbrella. Participants: regional DSOs (Luleå Energi, Piteå Energi, Boden Energi, Vattenfall Eldistribution) and large industrial customers (LKAB, SSAB, Stegra, Boliden, etc.) and Svenska kraftnät. Data is aggregated at municipality and county level. Updated on a regular frequency; high precision for the nearest 5–8 years. The model emerged from the need to create a common factual picture of the enormous industrial electrification investments planned for SE1 — a prerequisite for coherent grid planning and financing decisions. (Source - Nationell Dialog Flexibilitet Nätkapacitet 12 Maj 2026)

NTC — Net Transfer Capacity Previous method for cross-zonal capacity calculation based on simplified bilateral exchange limits. Replaced by Flow-Based Capacity Calculation in the Nordics (October 2024).

O

Obalansanalys (Swedish) An analysis of imbalances in the electricity system — specifically the volume and pattern of BRP (balansansvarig) imbalances compared to their notified production and consumption plans. Svenska kraftnät presented a multi-year obalansanalys at the November 2024 Elmarknadsrådet showing that imbalances in Sweden and the Nordics have increased significantly over the past ten years, driven primarily by the 800% increase in average hourly wind production. SE2 shows the largest growth. Key structural factors: 90% of electricity trading occurs 12–36 hours before delivery (day-ahead); the balancing window closes 45 minutes before the delivery hour, leaving BRPs limited time to correct positions. (Source - Elmarknadsrådet Meetings 3 and 4 2024 (Sep-Nov))

Observability area (NC DR term) The geographical scope a DSO defines for monitoring grid conditions — its own network plus relevant adjacent segments. Used for congestion forecasting and coordination with TSOs and neighboring DSOs.

OCPP — Open Charge Point Protocol Communication protocol for EV charging infrastructure — governs communication between an EV charger (charge point) and its backend management system. OCPP 2.1 is the version required for Vehicle-to-Grid: it adds bidirectional charging support, enabling aggregation platforms to control and monitor V2G discharge sessions. Relevant for EV-based Aggregation and Demand Response. Compare with ISO 15118-20 (vehicle↔charger communication) — OCPP covers the charger↔backend layer. (Source - Power Circle V2X Synthesis 2024)

Ö-drift (Swedish) / Island operation Operating a grid section disconnected from the main transmission or distribution network, sustained by local generation and storage. Relevant as both a technical reliability tool (automatically triggered by cable faults) and a crisis preparedness instrument (intentional ö-drift planning for severe outages). Svenska kraftnät defines four levels: (1) elberedskapsö-drift — planned, crisis/war preparedness; (2) planerad ö-drift — planned maintenance isolation; (3) oplanerad ö-drift — fault-triggered, reconnect when fault cleared; (4) oavsiktlig ö-drift — unintentional, requires immediate detection and reconnection (islanding protection). The binding technical constraint is black start capability: the ability to re-energize a de-energized network segment without external power. Swedish operational examples: Arholma (Vattenfall Eldistribution) and Simris (E.ON Energidistribution). See Island Operation for full taxonomy, protection engineering, cybersecurity, case studies. (Source - Svk Om Ö-drift (2025))

Ombud (Swedish) — aFRR intermediary A licensed intermediary that submits aFRR bids to Svenska kraftnät‘s aFRR market on behalf of an aggregator or other market participant that is not itself a qualified BSP. The ombud mechanism allows entities like CheckWatt to access the Nordic aFRR market without holding full BSP qualification. Svk opened ombud access to third-party aggregators on January 15, 2025 as part of the aFRR cross-BRP aggregation rollout. Distinct from the BSP/BRP split — ombud is a transitional mechanism, not full BSP status. See Aggregation, Balancing Markets. (Source - CheckWatt Website (2025-2026))

OpenADR — Open Automated Demand Response Communication protocol for automated Demand Response signal exchange between utilities/DSOs and customer energy management systems. Standardized as IEC 62746-10-1; maintained by the OpenADR Alliance. DSO = VTN (Virtual Top Node, server); customer/CPO = VEN (Virtual End Node, client). Version 3.0.1 recommended for new Swedish implementations (REST/JSON; more modern than the older SOAP/XML 2.0b). Industry-recommended for Swedish Villkorade Avtal communication by Energiföretagen Sverige since October 2023 (voluntary). Two live production variants exist as of April 2025: E.ON’s (CONSUMPTION_POWER_LIMIT, PT15M, dynamic KW limits, real-time metering) and Ellevio’s (SIMPLE Curtail/Restore, PT20M, pre-agreed static limits). See OpenADR.

Öppet kundgränssnitt (Swedish) — open customer interface The standardised interface on a Swedish smart meter (HAN-port type, based on a relevant European standard) through which a customer can access their own meter values in near real time — enabling third-party realtidsmätare, in-home displays, and automated steering services to read consumption directly. Required by förordning (1999:716) and the mätföreskrifterna (EIFS 2025:1). From 1 January 2027, EIFS 2026:8 (4 kap. 4 §) requires every DSO to publish information about this interface and which dataprotokoll it supports, explain its use, and show on mina sidor whether a customer’s interface is active — a duty that followed Ei’s spring-2025 riktad tillsyn finding that missing protocol information was limiting consumer choice and undermining the open-standard requirement. Publishing supported protocols (rather than naming brands) preserves DSO neutrality. Distinct from a behind-the-meter DMD (Art. 7b): the öppet kundgränssnitt reads the connection-point meter, not an individual circuit/appliance. See Submetering, Source - EIFS 2026-8 Nätföretags Information till Elanvändare (2026).

Överbelastningsreserv (Swedish) A reserve instrument procured by Svenska kraftnät (procured November 2024, contracts from January 2025) to replace the störningsreserv (disturbance reserve) when its contracts expired. Unlike the störningsreserv, which covered mainly production-side emergency capacity, the överbelastningsreserv was procured through an open competition accepting both production resources and consumption resources, and also included the capability systemdriftskompensation. It is a grid-level instrument aimed at handling local overload situations rather than system-wide scarcity (which is the role of the Strategisk Reserv). (Source - Elmarknadsrådet Meetings 3 and 4 2024 (Sep-Nov))

P

PDIRD-E — Plano de Desenvolvimento e Investimento das Redes de Distribuição de Energia Elétrica (Portuguese) “Distribution Network Development and Investment Plan for Electricity” — Portugal’s equivalent of Sweden’s DNDP (nätutvecklingsplan). Produced by E-Redes every 5 years (quinquennial), with biennial updates. Reviewed by ERSE (NRA) via binding opinion; approved by Council of Ministers resolution. Legal basis: Decreto-Lei 15/2022 (transposing Directive 2019/944). PDIRD-E 2024 covers 2026–2030; total investment €1,607.6M. Portugal is identified as the most advanced EU country for DNDP flexibility quantification by ACER/CEER. (Source - ERSE Parecer PDIRD-E 2024, Distribution Network Development Plan)

PCI — Project of Common Interest Cross-border energy infrastructure project selected under the EU TEN-E Regulation as qualifying for streamlined permitting, accelerated review, and potential CEF (Connecting Europe Facility) co-funding. PCIs are identified through the TYNDP (Ten-Year Network Development Plan) process and listed in a Union list updated every two years. Since 2022, the TEN-E framework also covers PMIs (Projects of Mutual Interest — with third countries), offshore grid projects, smart grids, hydrogen, and electrolysers. The 2023 Union list contains 166 PCIs/PMIs including 68 electricity projects. The European Grids Package (COM/2025/1005) proposes to expand PCI eligibility to internal reinforcements (not only cross-border) and non-wire solutions, and to simplify the reapplication process for mature PCIs. (Source - EU Grid Action Plan COM2023-757, Source - European Grids Package COM2025-1005)

Peak-shaving product A market-based demand response product activated during declared EU/regional electricity price crises (Art. 7a, Regulation 2024/1747). Member states may instruct system operators to procure peak-shaving from demand-side resources during a Council-declared crisis; minimum bid size ≤100 kW (including aggregation); procurement via competitive bidding; activation in or before the day-ahead timeframe; no fossil generation behind the meter. Defined in Regulation 2019/943 Art. 2(73–74) as amended. (Regulation 2024/1747, Art. 7a; Source - Electricity Market Design Reform Regulation (EU 2024-1747))

Peak shaving Reducing peak demand through storage discharge or load reduction. Reduces congestion and defers grid reinforcement.

PICASSO — Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation ENTSO-E platform for cross-border exchange of automatically activated frequency restoration reserves (aFRR). Enables participating TSOs to import and export aFRR energy bids pan-European. Nordic connection timeline: Energinet (Denmark) connected October 2024, Fingrid (Finland) January 2025. Svenska kraftnät (Sweden) and Statnett (Norway) plan to connect in 2027/2028. Connection is expected to import Norwegian aFRR upward capacity into Sweden, potentially reducing the structural aFRR price asymmetry (up prices lower than down prices due to Norwegian imports). See Balancing Markets, Nordic Balancing Model. (Source - Svk Balancing Market Outlook 2030 (2024))

PPA — Power Purchase Agreement EU legal definition (Regulation 2024/1747, Art. 2(77)): “A contract under which a natural or legal person agrees to purchase electricity from an electricity producer on a market basis.” Long-term bilateral electricity supply contract between a renewable generator and a buyer (consumer, trader, or other entity), fixing price, quantity, duration, and risk allocation outside the standard spot market. Main types: on-site PPA (direct delivery behind meter), off-site PPA (via public grid, balance group settlement), sleeved PPA (off-site with energy service provider intermediary), and virtual/synthetic PPA (financial only, using a Contract for Difference structure). Typical duration 10–15 years. EU member states must promote PPAs and ensure buyer-default guarantee schemes under Art. 19a of Regulation 2024/1747. See Power Purchase Agreement. (Source - Electricity Market Design Reform Regulation (EU 2024-1747), Source - PPAs Explained (Next Kraftwerke))

Procuring system operator (NC DR term) The system operator that actively procures balancing or local services from a service provider. Responsible for: running the market or tendering process, bid selection, activation, settlement, and publication of market results. Must act non-discriminatorily and maintain IT solutions for the full procurement process. Must not share preferential or commercially sensitive information with affiliated companies. Distinct from the connecting system operator (where the resource is connected) and the impacted system operator (whose grid may be affected). (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

Prequalification (NC DR term) Standard ex-ante verification that a resource meets the technical requirements for a specific balancing or flexibility product. Distinguished from product verification (lighter, ex-post) used as the default for local services.

Product verification (NC DR term) Lower-barrier, ex-post process for confirming a resource meets product requirements. The default for local services in the NC DR (Art. 19); full product prequalification (ex-ante) applies only when SPU/SPG capacity exceeds a voltage-level threshold defined in national T&C. From application confirmation, the resource receives temporary qualification allowing immediate market participation pending the verification result. Where the SPU/SPG consists entirely of small CUs (≤50 kW) or identical already-prequalified CUs, the process is simplified. (Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

Punktlast (Swedish — “point load” or “point connection”) A large individual consumer, producer, or mixed installation that connects at a single point in the distribution network and creates concentrated demand or supply. In DNDP planning, punktlaster are distinguished from the organic, distributed growth of residential and small-commercial load. Key characteristics: (1) individually significant MW scale that can stress a feeder or substation; (2) high uncertainty — feasibility of connection is often unclear at plan publication time, so many DSOs exclude them from forecasts; (3) short lead time relative to grid investment — a punktlast can materialize faster than grid reinforcement can be built. Common examples in Swedish NUPs: large battery storage, EV fleet charging depots, data centers, hydrogen electrolysers, industrial electrification projects, and solar parks. Because punktlaster often exceed available grid capacity, they are the primary driver of villkorade avtal (conditional connections) and the main source of uncertainty in DNDP aggregate figures. See Distribution Network Development Plan, Villkorade Avtal, Source - Nätutvecklingsplaner i Skåne 2025-2034 Region Skåne (2025).

Q

Quantification Aggregator (IA DR role) The party responsible for aggregating metering data from multiple Controllable Units to produce consolidated flexibility quantification figures for settlement purposes. One of the new roles introduced by the IA DR (Implementing Act on Demand Response) in Phase 2. Works alongside the Quantification Responsible (who holds accountability for the final quantification) and the Baseline Calculator. Handles the data aggregation layer in the baseline/quantification process chain. (Source - Svk IA DR Webinar Part 1 (2025))

R

Restore product (FIRMe term) A local flexibility market product in E-Redes’ FIRMe programme (Portugal) for post-fault network restoration — activated in extraordinary situations associated with restoring the network after unexpected events. One of FIRMe’s three products alongside Dynamic (planned maintenance) and Secure (congestion management). The Restore product addresses the grid restoration use case that no Swedish local flexibility market product currently covers; it may be relevant as a product extension for Swedish DSOs facing complex fault scenarios. (Source - E-Redes FIRMe Programme)

Reserve connecting DSO (SO GL term) The DSO responsible for the distribution network to which a reserve providing unit or group is connected. Has the right to set limits or exclude reserve delivery based on technical reasons (e.g., geographical location, grid constraints). The NC DR extends this concept through the observability area and TSO-DSO coordination framework. (SO GL Art. 3(149), Art. 182)

Reserve providing group (SO GL term) An aggregation of power generating modules, demand units, and/or reserve providing units connected to more than one connection point, fulfilling requirements to provide FCR, FRR, or RR. Precursor to the NC DR’s Service Providing Group (SPG) concept. (SO GL Art. 3(11))

Reserve providing unit (SO GL term) A single or aggregation of power generating modules and/or demand units connected to a common connection point, fulfilling requirements to provide FCR, FRR, or RR. Precursor to the NC DR’s Service Providing Unit (SPU). (SO GL Art. 3(10))

Redispatching (Swedish: omdirigering) Adjusting generation or load to relieve grid congestion after the market has cleared. The CEP requires market-based redispatching as the default (Regulation Art. 13). Non-market-based redispatching (including Villkorade Avtal) requires Art. 13(3) exceptions to be met. Ei classifies villkorade avtal as non-market-based redispatching; Ei2025:01 adds that non-market activation requires a fresh assessment after gate closure for each operating quarter, after market-based alternatives are exhausted. (Source - Ei Villkorade avtal (2023), Source - Ei Ställningstagande Ei2025-01 Villkorade avtal (2025))

Rundstyrning (Swedish) Ripple control — a now-defunct Swedish DSO mechanism that sent a kHz signal on top of the 50 Hz supply to remotely switch water boilers, street lamps, and controllable loads. Widely deployed in Sweden in the mid-1990s; could deliver 7–8% peak load reduction. Monthly tariff discount incentivized customer participation. Phased out ~2000 after electricity market deregulation removed delivery responsibility from utilities. Represents an earlier, pre-digital form of demand flexibility — now being “reinvented in a more digital and market-oriented way.” (Source - CoordiNet D4.7.2 Swedish Demonstration (2022))

Realiseringstid (Swedish) “Realization time” — the period over which identified efficiency potentials in DSO operations are assumed to be realised in the Swedish revenue cap regulation. Set at 8 years (two four-year supervisory periods) for both RP4 and RP5. A longer realization time reduces short-term pressure on DSOs (efficiency can be achieved gradually) but means customers bear the cost of identified inefficiency for longer. The 8-year level reflects that many grid efficiency improvements require investment in long-lived capital assets. (Source - Ei Effektiviseringsincitament Webb (2026-05-12))

Revenue cap regulation See intäktsramsreglering.

Rules-based flexibility Flexibility mandated or incentivized through regulation, tariff design, grid codes, or contractual obligations (as opposed to market transactions). Examples: dynamic network tariffs, Villkorade Avtal, grid code requirements for DER voltage support. Contrast with market-based flexibility.

S

Sällanköpsmarknad (Swedish) “Rare-purchase market” — Ei’s characterization of Swedish local Flexibility Markets, where congestion events are infrequent and geographically limited, resulting in low liquidity, few activations, and weak revenue for providers. A fundamental structural challenge for distribution-level flexibility markets. (Source - Ei Flexibility in Distribution Grids (2023))

Självreglering (Swedish) “Self-regulation” — a concept in Nordic balancing markets where a Balance Responsible Party (BRP) deliberately maintains an imbalance in the opposite direction to the current system-wide imbalance — for example, going short when the system is long — to help reduce the total system imbalance. Distinct from normal BRP behavior (minimizing one’s own portfolio imbalance) and from BSP provision of balancing reserves.

Currently not allowed in Sweden. All other Nordic countries (Finland, Denmark, Norway) and several other European countries (Netherlands, Belgium) permit it. Svenska kraftnät was formally evaluating whether to allow self-regulation as of February 2026. Prerequisites identified: accurate real-time balance data published to market; resources with sufficiently fast activation; correct incentives (aligned with system direction); complementary to, not substituting for, TSO balancing. Risk: many actors responding simultaneously to the same published data could create oscillations, particularly with fast-acting battery resources. (Source - Elmarknadsrådet Meeting 1 February 2026)

Säsongstillgänglighet (ST) “Seasonal availability” — the longest-horizon product in SWITCH, procured months before the market season. The DSO specifies peak hours (e.g., weekdays 07–11 and 16–20, November–March) and a total volume need; FSPs bid an activation price; lowest price wins. A schedule is created and flexibilitet orders are generated automatically throughout the season. FSPs receive availability payment regardless of whether activation occurs; activation triggers additional payment. Clearing happens W-2; activation day-ahead (D-1 09:30–10:30) or intraday (H-2). See SWITCH › Products. (Source - SWITCH User Documentation (2026))

SCADA — Supervisory Control and Data Acquisition System for remote monitoring and control of grid infrastructure (substations, switches, equipment).

SE1, SE2, SE3, SE4 Sweden’s four Bidding Areas, from north (SE1) to south (SE4). Structural surplus in SE1–SE2 (hydro, wind); structural deficit in SE3–SE4 (population, industry).

Service Provider (SP) (NC DR term) A qualified market participant that supplies flexibility services (local or balancing) from one or more SPUs or SPGs. Must be registered in the flexibility register.

SP Module Operator (IA DR role) The party responsible for operating the SP-module of the FIS (Flexibility Information System). Manages SP and SPG registration data and the associated data exchanges (Processes 9–15 in the IA DR Phase 1 scope). Counterpart to the CU Module Operator on the service-provider side of the FIS architecture. One of the new role types introduced by the IA DR not present in the NC DR itself. (Source - Svk IA DR Webinar Part 1 (2025))

Service Providing Group (SPG) (NC DR term) An aggregation of Controllable Units across multiple connection points within a scheduling area. The NC DR’s formal mechanism for Aggregation — the regulatory equivalent of a Virtual Power Plant.

Service Providing Unit (SPU) (NC DR term) A single Controllable Unit or ensemble of CUs at one connection point that participates in a market as a unit.

Settlement-grade submetering / Indicative submetering Two quality tiers for dedicated measurement device (DMD) data. Settlement-grade: meets calibration and accuracy standards for use in formal billing, invoicing, and market settlement; requires independent certification, tamper detection, and full audit trail. Indicative: sufficient for operational decisions, DSO observability, and baseline calculation, but not for direct billing; lower cost, easier to deploy.

Most flexibility service applications — including baseline calculation for activation settlement, per-DER attribution in mixed-asset portfolios, and DSO grid observability — require only indicative-grade submetering. Requiring settlement-grade for all applications is a disproportionate deployment barrier identified by the BeFlexible project survey. The distinction is critical for regulatory design: NC DR T&C development should specify which applications require which tier to avoid over-specification. See Submetering, Dedicated measurement device (DMD). (Source - Submetering for Flexibility Services Comillas (2024))

70% rule At least 70% of thermal capacity on critical network elements must be made available for cross-zonal trade. See Flow-Based Capacity Calculation, Bidding Areas. (Regulation Art. 16(8))

ShortFlex / ShortFlex Availability / LongFlex Product family used on sthlmflex (and conceptually parallel to SWITCH product categories):

• ShortFlex (fria bud): spot energy bids, pay-as-bid, activated day-ahead or intraday (T−2 gate closure), no availability fee
• ShortFlex Availability: medium-term product introduced in sthlmflex season 3 (V2022/23), replacing VeckoFlex. DSOs announce specific hours (1–5 days ahead, based on forecasts) when availability is needed; FSPs bid to be available for those hours. Availability fee ~2,000 kr/MWh (capped at 1 MWh/h per FSP), activation max 2,800 kr/MWh. At least 160 availability hours/season guaranteed by the buying DSOs. Also used in Effekthandel Väst (NODES)
• LongFlex: multi-season availability contract (1–3 winters); triggered at ≤−5°C (SMHI forecast, day before), within peak windows 07:00–11:00 and 17:00–21:00; two-part payment (availability + activation) All products: 0.1 MW minimum bid, 0.01 MW granularity, 60-minute uthållighet, pay-as-bid pricing, delivery tolerance of 80% for full payment (linear reduction to zero at 40%). (Source - sthlmflex säsong 3 (2022-2023))

Snitt (Swedish) See intersection.

SO GL — System Operation Guideline (Regulation 2017/1485) Commission Regulation establishing rules for electricity transmission system operation: operational security, load-frequency control, reserve dimensioning (FCR, FRR, RR), prequalification, TSO-DSO data exchange, and cooperation on reserve delivery from distribution systems. Foundational regulation that the Network Code on Demand Response builds upon. See Source - SO GL (Regulation 2017-1485).

Ställningstagande (Swedish) A formal regulatory guidance document published by Ei (and potentially other Swedish authorities) clarifying how specific rules should be interpreted and applied. Introduced by Ei in 2025 as a new publication series in response to stakeholder requests for clearer guidance. Can be updated when legal practice or regulation changes. Ei2025:01 (on villkorade avtal) was the first in the series. Narrower in scope than a full report (R-series); more binding in intent than an FAQ — summarizes Ei’s official interpretive position. (Source - Ei Ställningstagande Ei2025-01 Villkorade avtal (2025))

Stamnät (Swedish) The Swedish transmission network, operated by Svenska kraftnät at 220–400 kV.

Strategisk reserv (Swedish: strategic reserve) Sweden’s strategic electricity reserve mechanism, introduced by Lag 2025:50 as a replacement for the previous effektreserv (terminated March 2025). Purpose: provide backup capacity for periods of extreme demand or generation shortfall, reducin LOLE (Loss of Load Expectation) to 1.0h target. Technology-neutral (production and load-shedding eligible); minimum 1 MW and 2h endurance; annual and multi-year contracts (multi-year must be fossil-free); BSP/BRP cannot overlap to avoid crowding out mFRR bids.

First procurement (summer 2025) failed: all bids exceeded the CONE price cap of 120,000 SEK/MW (713 MW offered). Second procurement (winter 2025/26): model redesigned to link payment to LOLE reduction (LOLE-based willingness-to-pay). Result: 350 MW contracted 8 January 2026 — 330 MW Sydkraft Thermal Power (Karlshamnsverket, SE4) + 20 MW Mälarenergi (Aros G4, Västerås, SE3); LOLE improves from 1.6h → 1.2h. BRPs in SE3/SE4 pay a cost levy (Lag 2025:50, Förordning 2025:835). Ei reviewing CONE and VoLL with result expected autumn 2026. (Source - Elmarknadsrådet Meeting 1 February 2026, Source - Svk Kraftbalansen Höst 2025)

sthlmflex Stockholm flexibility market — a Swedish TSO-DSO flexibility market R&D project (FoU-projekt) operated by Svenska kraftnät with Vattenfall Eldistribution and Ellevio as buying DSOs (and E.ON Energidistribution from season 3). Ran for four seasons: V2020/21–V2023/24. Used NODES as the market platform and the SWITCH flex tool as the DSO operator interface. Key feature: cross-DSO abonnemangsväxling enabled region-wide resource pooling. Closed after S4 (no separate season 4 report published as of April 2026). See Flexibility Market.

Styrbar effekt (Swedish) Controllable power — the portion of a customer’s connection capacity that the DSO can curtail under a villkorat avtal. Must be curtailed within 15 minutes of signal.

Subscription level (Swedish: abonnemang mot överliggande nät) The annually contracted maximum power that a regional DSO may draw from the TSO grid (or a local DSO from a regional DSO) without prior notice. Central to the Swedish congestion management business case: when Svenska kraftnät denies a subscription raise pending grid reinforcement, the DSO must manage demand below the limit — creating the demand for a local Flexibility Market. The TSO can also grant temporary subscriptions (up to 7 days, retractable at any time) for short-term needs at ~240–280 SEK/MWh, which acts as a price ceiling on DSO willingness to pay for flexibility. (Source - CoordiNet D4.7.2 Swedish Demonstration (2022))

SWITCH Digital platform built by E.ON Energidistribution for distribution-level flexibility market operation and Villkorade Avtal integration. Developed in-house during the CoordiNet demonstration (2019–2022); continues as E.ON’s live flexibility market platform post-project. Architecture: (1) market tool — bid management, PTDF-weighted merit order, mFRR forwarding; (2) flex tool — DSO operator interface, ML load forecast, subscription limit monitoring, integration with TSO SUSIE subscription system; (3) FSP interface — sell order API, baselines, delivery history; (4) P2P platform — capacity trading during maintenance. The flex tool component was also adopted by sthlmflex (Stockholm), which uses NODES as the market tool. See SWITCH.

System states (SO GL term) Five states defined by SO GL Art. 18: Normal (all limits met, sufficient reserves for N-1) → Alert (limits met but reserves insufficient or N-1 violation possible) → Emergency (security limits violated) → Blackout (>50% demand lost) → Restoration (recovery underway). Reserve availability is a key criterion — when reserves are exhausted, TSOs may require demand units to change consumption.

T

Table of Equivalences (NC DR term) Mechanism enabling value stacking: if a resource is prequalified for one flexibility product, it may be automatically recognized for other products with equivalent technical requirements. Published by TSOs/DSOs. Transforms the business case by enabling multiple revenue streams from a single qualification. See Network Code on Demand Response.

Temporary limits (NC DR term) Short-term constraints set by connecting or impacted system operators on specific grid elements, SPUs, SPGs, or parts of SPGs in operational planning to ensure that flexibility delivery does not compromise grid safety. Applied close to real-time — distinct from the longer-term grid prequalification. Must be communicated at least 1 hour before balancing energy gate closure. System operators must minimise the number, size, frequency, and duration of temporary limits to reduce market impact. Methodology must be public, transparent, verifiable, and accurate. (Art. 50, Source - NC DR Amended Text (ACER Recommendation 01-2025 Annex 1))

TEN-E — Trans-European Networks for Energy EU regulatory framework governing cross-border energy infrastructure planning, permitting, and financing. Established by Regulation (EU) 2022/869 (currently in force; to be replaced by COM/2025/1006). Provides for: (1) the Union list of PCIs (Projects of Common Interest) and PMIs (Projects of Mutual Interest); (2) streamlined permitting for listed projects; (3) CEF (Connecting Europe Facility) co-funding eligibility; (4) the TYNDP (Ten-Year Network Development Plan) process by ENTSO-E as the infrastructure planning mechanism. The 2025 revision (COM/2025/1006) strengthens EU-level scenario development by transferring central scenario development from ENTSO-E to the Commission, introduces Energy Highways, broadens PCI scope to non-wire solutions and internal reinforcements, and reforms cross-border cost allocation. (Source - European Grids Package COM2025-1005)

Tillgänglighetsordrar (TO) “Availability orders” — the medium-horizon product in SWITCH, complementing Säsongstillgänglighet. DSO places orders up to 7 days ahead based on current forecasts; clearing D-2 10:30; activation D-1 only (no intraday). FSPs bid an activation price; lowest price wins. Both availability and activation fees apply. Suited to FSPs that cannot guarantee long-term availability but can commit days ahead. See SWITCH › Products. (Source - SWITCH User Documentation (2026))

Timmedeleffekt (Swedish) Hourly average power (kW) — the average power drawn or injected during a one-hour interval, equal to the energy (kWh) transferred in that hour. The standard measurement unit in Swedish effektavgift billing calculations; one or more timmedeleffekter per billing period are selected and averaged to determine the debiteringsgrundande effekt. Measured at the connection point using smart meter interval data. Distinct from contracted effect (the agreed subscription level) and from toppeffekt (instantaneous peak — not used in Swedish DSO billing). (Source - Ei PM2026-07 Effektavgift Supervision)

Timprisavtal (Swedish) Hourly electricity pricing contract — a retail supply contract where the customer pays the actual spot market price for each hour of consumption, plus a fixed markup and network tariff. Also called rörligt timpris. Key metric for consumer demand flexibility readiness: as of 2024, only ~12–13% of Swedish households effectively benefit from hourly pricing, despite ~15% holding formal timprisavtal — the gap reflects customers in multi-metered buildings who lack an individual grid connection (Ei Flexläget 2026, Ramboll 2024). Timprisavtal creates an implicit Demand Response incentive by exposing customers to spot price variation. Contrast with månadsrörligt (monthly average price, no hourly signal). Note: ~9% of consumers confuse the two (IVL 2023). See Demand Response. (Source - Ei Flexläget 2026 (PM2026-02), Source - Ramboll Nyckeltal Hushålls Efterfrågeflexibilitet (2024))

Tolling agreement A commercial structure in which a battery developer grants a counterparty (the “toller”) exclusive access to the battery’s capacity for a fixed term, in exchange for a guaranteed payment. The toller bears all merchant risk — deciding when and in which markets to dispatch the asset — while the developer receives predictable revenue independent of market outcomes. Emerging as a dominant BESS financing structure in Europe (approximately 20 signed by mid-2026) as banks have become reluctant to lend against merchant battery risk. Tolling agreements isolate the storage merchant layer in a separate bilateral structure, distinct from a hybrid PPA (which bundles renewables + storage in one contract but exposes the offtaker to battery optimisation complexity most corporate buyers cannot evaluate). (Source - Powernaut Flex Trends Report (2026), Source - Konsultrapport Balansansvarigas förutsättningar Merlin Metis (2026))

TOTEX — Total Expenditure Combined benchmarking framework covering both capital expenditure (CAPEX) and operating expenditure (OPEX) in a single cost efficiency incentive. The key reform in Ei’s RP5 (2028–2031) revenue regulation methodology for Swedish DSOs. Achieves lösningsneutralitet — eliminates the CAPEX bias that systematically favored grid investment over flexibility procurement. Enstegsmetoden confirmed as the chosen method (December 2025); full cost coverage at Q3; no general efficiency requirement; 8-year realiseringstid. See Enstegsmetoden, Effektiviseringsincitament. (Source - Ei Inriktning intäktsramar 2028-2031 (2025), Source - Ei Effektiviseringsincitament Webb (2026-05-12))

Transfer of Energy Service Provider (NC DR term) Entity handling energy reallocation between Balance Responsible Party portfolios when flexibility activation shifts energy between market participants.

TSO — Transmission system operator Entity operating the high-voltage transmission grid. Responsible for system balance, cross-border flows, and grid development. In Sweden: Svenska kraftnät. See Transmission System Operator.

Two-way contract for difference (two-way CfD) EU legal definition (Regulation 2024/1747, Art. 2(76)): “A contract between a power-generating facility operator and a counterpart, usually a public entity, that provides both minimum remuneration protection and a limit to excess remuneration.” The EU’s mandatory instrument for public support for new low-carbon generation from 17 July 2027 (Art. 19d, Regulation 2024/1747). Applies to: wind, solar, geothermal, run-of-river hydro, and nuclear. Structure: a floor (strike price — minimum remuneration) protects against low prices; a ceiling — above the strike price, revenues are redistributed to final customers (preventing windfall profits). Participation is voluntary; early termination requires penalty clauses. Offshore hybrid projects: deadline 17 July 2029. Distinguished from virtual PPAs (which use a similar CfD financial structure but are market-based private contracts, not public support instruments). (Regulation 2019/943, Art. 2(76) and Art. 19d, as inserted by Regulation 2024/1747; Source - Electricity Market Design Reform Regulation (EU 2024-1747))

U

Unbundling Structural separation of network operation (natural monopolies) from competitive activities (generation, retail). Required by EU law to prevent market distortion. See Natural Monopoly.

Uthållighet / Återhämtning (Swedish) “Endurance / Recovery” — two paired parameters in SWITCH market products. Uthållighet is the maximum number of consecutive hours a resource can deliver flexibility (e.g., a battery can sustain 1 hour). Återhämtning is the minimum rest time required before the resource can deliver again. When a DSO specifies uthållighet requirements, resources with shorter endurance receive a proportionally reduced availability fee via the Df factor: Df = 0.5 + (resource endurance / requested endurance) × 0.5. A resource with half the required endurance receives Df = 0.75 (75% of the maximum availability fee). Resources can still be available for all hours in the window even if they cannot sustain the full period at once. (Source - SWITCH User Documentation (2026))

V

V2B — Vehicle-to-Building Bidirectional power transfer from an EV battery to a commercial or industrial building energy management system. A subset of V2X. Used for demand charge reduction and building energy optimization. See V2X.

V2G — Vehicle-to-Grid Bidirectional power transfer from an EV battery back into the electricity grid, turning the vehicle into a distributed energy resource. Requires a bidirectional charger (EVSE), an inmatningsabonnemang, and compliance with ISO 15118-20 / OCPP 2.1. Grid services V2G can provide include FCR, aFRR/mFRR, local DSO flexibility, and energy arbitrage. The Swedish regulatory framework for V2G contains several unresolved grey areas: classification ambiguity (microproduction vs mobile injection point), dubbelbeskattning, physical address registration requirements, and nätkoder not adapted for mobile resources. Swedish fleet potential: ~5,000 MW by 2030 under optimistic assumptions. See Vehicle-to-Grid. (Source - Power Circle V2X Synthesis 2024, Source - KTH Thesis V2G Sweden 2024)

V2H — Vehicle-to-Home Bidirectional power transfer from an EV battery to the owner’s own household — enabling self-supply, backup power during outages, and optimization against time-of-use tariffs. A subset of V2X. V2H is generally viewed as a gateway product for V2G adoption: consumers experience direct, immediate financial benefit before engaging with the more complex grid services market. (Source - KTH Thesis V2G Sweden 2024)

V2L — Vehicle-to-Load Direct AC power output from an EV to portable equipment or loads — without connecting to any grid. Used for construction sites, camping, or emergency power. A subset of V2X. No grid injection subscription or bidirectional charger required (the vehicle’s inverter provides the output directly). See V2X.

V2X — Vehicle-to-Everything The umbrella term for all bidirectional power transfer from an EV battery to any external system. Sub-categories: V2G (grid), V2H (household), V2B (building), V2L (portable loads), V2V (vehicle-to-vehicle). Requires a bidirectional charger for grid-connected variants (V2G, V2H, V2B) — either AC (cheaper wallbox, inversion inside vehicle OBC) or DC (more expensive wallbox, better protocol maturity). See Vehicle-to-Grid. (Source - Power Circle V2X Synthesis 2024)

Value stacking A single flexibility resource earning revenue from multiple markets and products simultaneously. Enabled by the NC DR’s Table of Equivalences. Key for making distributed flexibility economically viable.

VeckoFlex (Swedish) “Week flex” — a medium-term availability product used in sthlmflex season 2 (V2021/22), providing weekly availability reservation for flexibility resources. Replaced in season 3 (V2022/23) by ShortFlex Availability, which improved targeting by allowing DSOs to announce specific forecast-driven hours rather than a fixed weekly schedule. Data for VeckoFlex in season 1 appears as “ShortFlex Availability” in the cross-season tables with 144 MWh procured. (Source - sthlmflex säsong 3 (2022-2023))

Villkorade avtal (Swedish) / Flexible connection agreement (NC DR term) Swedish DSO mechanism where a customer’s connection is split into guaranteed capacity and controllable capacity that can be curtailed during congestion. Rules-based, explicit flexibility. The NC DR recognizes these as “flexible connection agreements” and requires coordination with market-based procurement. See Villkorade Avtal.

Virtual power plant (VPP) Cloud-based system aggregating distributed energy resources to operate as a single dispatchable unit. The NC DR does not use this term — the regulatory equivalent is a Service Providing Group (SPG). See Virtual Power Plant.

W–Z

Wholesale markets System-wide markets for electricity trading. In the Nordics, operated by Nord Pool (day-ahead) and via continuous intraday trading. Distinguished from Balancing Markets (real-time) and Flexibility Markets (local/DSO).