Congestion Management Products
With the advent of the new Grid Code in June 2022, 4 ways of congestion management are now possible. Three of them are through GOPACS. Each form of congestion management offers you, as a wholesale user, opportunities to generate additional revenue. We explain the 3 different options via GOPACS below.
1. Redispatch (intraday)
It has been possible to submit intraday bids since the start of GOPACS. With redispatch, network operators reduce the demand for transmission capacity via GOPACS on the basis of intraday bids. The grid operator places the congestion situation as an order in GOPACS. Participants with a connection in the congestion area can respond by placing an order on an energy trading platform connected to GOPACS. Actions to resolve congestion should not cause problems for the balance maintenance of the power grid at the national level.
Therefore, placing a buy order is always combined with a sell order outside the congestion area or vice versa. This way, the congestion situation is solved without disturbing the balance on the power grid.
If the order is called, you will receive the requested price for it. Financial settlement takes place via the energy trading platform linked to GOPACS.
2. Bid Obligation Contract (Redispatch)
The bid obligation contract is an agreement between the grid operator and a CSP (Congestion Service Provider directly. With a bid obligation contract, you as a CSP enter into a one-to-one agreement with your system operator. In doing so, you jointly agree to make redispatch bids in GOPACS at the request of the grid operator. The bid obligation contract explicitly includes the EAN connection(s) in the contract.
A bid obligation contract provides more security for both you as a participant and the grid operator than redispatch bids via an energy trading platform as described above. Through the bid obligation contract, the grid operator has the certainty that the congestion problem will be solved and you, as the contract partner, will have the certainty about the conditions and fees, as these are agreed in advance.
To submit bids through GOPACS, you must be an authorised CSP. If you are not a CSP yourself, you can also have an accredited CSP handle the bidding. The CSP will then submit the bid for GOPACS on behalf of your company.
Is your bid matched with a counter bid via GOPACS? Then you will receive the requested price for this. This financial settlement takes place via the energy trading platform linked to GOPACS. You close the contract with the grid operator in your region.
3. Capacity limitation contract with demand (day ahead)
With a day ahead capacity limitation contract, you contractually agree with your system operator that you will limit the requested transmission capacity if your system operator so requests. In other words, you agree on a capacity limit between you.
An on-call capacity limitation contract also offers more security for both you and the grid operator than intraday redispatch offers via GOPACS.
Under a capacity limitation contract, you may be represented by a CSP, but you do not have to be.
Even if you are not an authorised CSP yourself, you can agree a capacity limitation contract directly with the grid operator. The exception is customers larger than 60MW. For this group of customers, the Grid Code legally requires them to always appoint a CSP.
As a contract partner, you have certainty about the conditions and fees. This is agreed in advance. And the grid operator thus has certainty that the congestion problem will be solved.
Want to know more?
Interested or want to know more about the bidding contract options? Ask your grid operator about it.
GOPACS helps to keep the electricity grid reliable
Maarten Abbenhuis - COO, TenneT
What People are saying about GOPACS
Power trader - Optimax Energy
"Optimax Energy is very enthusiastic about GOPACS because it allows us as a young trading company to participate in a congestion management mechanism in the Netherlands through a very transparent and well-defined process. Energy markets are changing rapidly and we believe these mechanisms also need to evolve to meet the challenges ahead in a more innovative and clear way."
Head of Short Term Trading - Engie
"We embrace the transparency that GOPACS brings us in various areas: GOPACS clearly indicates where there are network problems and thus where we cannot further fine-tune our power stations. It also clearly indicates which volumes are sought and traded. This transparency benefits competitiveness."
CEO - Powerhouse
"Congestion is an important social problem that is only increasing. That is why we were one of the first to join. Powerhouse is convinced that we can offer a solution to the transport problem with the Gopacs platform and the power of our customers."
GOPACS is an initiative of the Dutch grid operators:
Join GOPACS! Participating in GOPACS is interesting for every market party with the ability to influence electricity consumption or the generation of electricity, which can offer this flexibility to trade.