When there is congestion in the electricity grid, grid operators distribute the limited space on the electricity grid. So this happens at times when the demand for transmission of electricity is higher than the electricity grid can handle. We call this shortage of transmission capacity congestion. Is this demand too high at a certain time? Then the grid operators ask large business customers via GOPACS whether they can temporarily use or generate less electricity for a market-based fee. The space thus freed up is distributed to other users of the electricity grid. This creates more space on the electricity grid and, at the same time, the customer receives compensation for the capacity he did not need at that moment anyway. A nice win-win situation.

How does this work in practice?

Suppose there is congestion somewhere in the electricity grid. In order to solve this congestion situation, the grid operators would then like, for example, less electricity production in this part of the grid. The congestion situation is put into GOPACS and a market message goes out to indicate that there is congestion in the grid and the grid operators would like to receive flex offers to solve this situation.

Then there are two options:

1. Flex bidding (redispatch)

Market participants with CSP approval and with an electricity connection in the congestion area can then place a flex offer on one of the connected energy trading platforms (ETPA & EPEX SPOT).

However, the balance of the electricity grid at the national level may not be disrupted by this action. Therefore, the reduction of electricity generation within the congestion area is combined with a sell order (sell order) from a market participant outside the congestion area.

Via GOPACS, the system very quickly checks whether this order does not cause problems at other locations in the electricity grid. If all signals are green, the grid operators pay the price difference (spread) between the two orders so that they can be matched on the energy trading platform in order to solve the congestion situation.

2. Capacity-limiting contract

Market parties, who have a capacity-limiting contract with their grid operator, submit a flex offer for the reduction of their power by agreement. The amount of the reduced power and the corresponding fee are agreed upon on forehand in the contract with the grid operator.

The market parties  generate extra income with capacity they did not need at that moment anyway and the grid operators can solve the congestion situation in the electricity grid. A nice win-win situation.