Offering of regulating and reserve capacity

TenneT has set up a single buyer market for regulating and reserve capacity to be able to perform its tasks in the area of transmission and system services. On this single buyer market, market parties can offer regulating or reserve capacity to TenneT, i.e. capacity they can produce or consume over or under the amount reported in their
E Programme.

TenneT primarily uses reserve capacity to solve transmission restrictions. Furthermore, we use reserve capacity, together with regulating capacity, to maintain or restore the balance between the demand for and supply of electricity in the Netherlands at any given moment.

Context

• The Grid Code contains stipulations about the compulsory and voluntary provision of regulating and reserve capacity to TenneT.

  • The procedures and specifications that bids must meet and the determination of the settlement price are described in the Implementation Regulations.
  • The use of bids by TenneT has been laid down in the Grid Code and the System Code.         

Explanation

A bid is an option in which a market party offers TenneT to do the following (when the option is exercised):

• calculate an energy volume
• settle this volume with the supplier at no less than the bid price
• correct this volume on the imbalance of the PRP of the market party         

The volume calculation is based on:

• The size of the bid in MW

  • The direction (+/ -) of the bid:
    - to adjust upward (+): the supplier wants to produce more, or consume less
    - to adjust downward (-): the supplier wants to produce less (or consume more)
    · nature of the bid
  • Reserve capacity:
    - dispatched according to demand
    - volume calculated on the basis of the dispatch time offered
  • Regulating capacity:
    - continuously controlled through national load frequency control
    - volume determined on the basis of a control signal         

  TenneT TSO activates bids for each direction according to the demand and in bid price order.

The data are shown per day, per Programme Time Unit (PTU) and per direction:

• total ladder size: arranged according to dispatch time
• ladder size ≤ 5 minutes: dispatch time ≤ 15 minutes, arranged according to nature
• bid price ladder ≤15 minutes: dispatch time ≤ 15 minutes, arranged according to bid price         

The settled volumes of regulating and reserve capacity and imbalance are listed under:

• volume of settled regulating, reserve capacity and incident reserve 

A more detailed explanation can be found in:

• aFRR documents