FAQs about the new regulations for grid bottleneck management

Redispatching is a term that refers to the management of bottlenecks in the electricity grid overseen by the operators of transmission and distribution systems. The approach seeks to prevent sections of the electricity grid from becoming overloaded by intervening in the production capacity of power plants. 

In Germany, the existing regulations outlined in the Renewable Energy Sources Act (EEG) and the Combined Heat and Power Act (KWHG) concerning the feed-in management of renewable energy plants and CHP plants are being replaced by a unified approach to redispatching (known as “Redispatch 2.0”), in accordance with Sections 13, 13a and 14 of the German Energy Act (EnWG). According to Germany’s law concerning the acceleration of grid development (NABEG), the requirements for grid bottleneck management must be implemented by 1 October 2021.

The new Redispatch 2.0 regulations apply to all plants over 100 kW. This includes plants for all energy sources, including plants that were previously unaffected by feed-in management requirements and those that do not have direct marketing arrangements.

With Redispatch 2.0, the projected progression of load and feed-in will be forecast and measures for counteracting expected overloads will be introduced pre-emptively. With the feed-in management approach, such measures are taken in real time. There are two new market roles: Resource Provider (EIV) and Producer (BTR).

In contrast to the previous approach, with Redispatch 2.0 there is compensation for the volume of “ungenerated” power, in addition to the financial compensation. This means that the operator continues to receive the market premium from the grid operator but receives the market value from the respective direct marketing company.

The new regulations introduce several responsibilities for plant operators. These include two roles that must be performed: Resource Provider (EIV) and Producer (BTR).

Another important requirement is to facilitate the timely transfer of the data that is needed by the grid operator. These data include master data, planning data and unavailability reports.

In order to implement all of the requirements of Redispatch 2.0, operators must clarify the following aspects:

• Determining the Resource Provider (EIV) and Producer (BTR) roles 
• Revising the contract with the direct marketer regarding the implementation of Redispatch 2.0 
• Assigning a balancing model (e.g. forecasting model)
• Choosing the invoicing concept for the loss of electricity production (e.g. ex post)
• Determining the request type (e.g. tolerance)
• Ensuring the availability of data

In the energy industry, a concept has been developed for roles relating to the execution of energy supply processes. The roles that have been determined cover certain activities, responsibilities and reporting duties, and they require the appropriate technological communication capabilities. These mandatory roles can also be transferred to a service provider. In such cases, the service provider must be registered with the German Energy & Water Association (BDEW) (market partner ID). With the introduction of the Redispatch 2.0 approach, there will be two new market roles: the Resource Provider (EIV) and the Producer (BTR).

Resource Provider (EIV)

Following the new Redispatch 2.0 regulations, the EIV will play a key role in the transmission of the necessary data between the operator, the direct marketer and the distribution system operator. The role holder will be responsible for deploying the plant, i.e. for planning and implementing the deployment of a technical resource (TR) that is assigned to a controllable resource (SR). He or she will also send the associated schedules. 

The responsibilities of this role include:

• Transmission of initial master data and any changes to these data
• Non-availability (unavailability)
• Market-driven adjustments
• Requests for tolerance-based and demand-based models
• Changing the balancing model (billing model)
• Planning data (if using the planned value model)
• Standardised communication (XML format)
• Continuous data reporting

Producer (BTR)

The BTR takes responsibility for coordinating and determining the loss of electricity production with the grid operator. As such, this role is particularly important for plants that were previously affected by feed-in measures. The BTR is responsible for operating a technical resource. The responsibilities of this role include:

• Transmission of meteorological data (if using ex post invoicing concept)
• Determining and coordinating the loss of electricity production with the grid operator
• Transmission of real time data
• Standardised communication (MSCONS, ACK)
• Daily/monthly data reporting

Initially, the plant operator is assigned the role of EIV. This role and the associated obligations can, however, be transferred to a third-party service provider. Since the data transmission requirements are very complex, we advise plant operators to delegate the role to their direct marketing company. Here at BayWa r.e. we have the requisite experience in the processes of market communication, so we will gladly take on the role of EIV on behalf of any plant that has a direct marketing contract with us.

If desired, we can also take on the role of BTR. Plants that are currently remunerated under the terms of the EEG must first transfer to a direct marketing arrangement before we can take on the role of EIV for these installations. We do not assume the EIV role for operators whose plants are not subject to direct marketing contracts with us.

The balancing model establishes who is responsible for forecasts and how measures are used in order to compensate for the outage. A balancing model must be assigned to every controllable resource, and the operator can choose the balancing model. When making this choice, it is prudent to consult the direct marketing company because it holds responsibility for the balancing group.

There are two models to choose from:

Planned value model

• Transmission of planning data to the grid operator is undertaken by the EIV
• EIV prepares forecasts
• Additional data supply costs
• Additional accounting costs

Forecast model

• Grid operator forecasts production volumes, as before (with the feed-in management procedure)
• Lower data supply requirements

Currently, we do not view one model as being more economically favourable. We will assign the forecast model to all plants as standard, except for cases where it is compulsory to use the planned value model (e.g. biomass plants and plants that are directly connected to the transmission system). The planned value model also always uses the ex post invoicing concept.

The request model dictates how and from whom the control signal is transmitted to us as the direct marketer under the Redispatch 2.0 measures at the plant. There are two distinct request models: tolerance-based and demand-based.

Tolerance-based

• The instructing grid operator sends the control signal and executes the control
• Works in the same way as the feed-in management procedure
• Grid operator and its technology is responsible for implementation

Demand-based 

• The instructing grid operator sends the control signal to the EIV and asks the EIV to execute the control 
• The EIV and the control technology available to him/her is responsible for the technical implementation

The tolerance-based model will be used as the standard request model. The demand-based model can be implemented if necessary for technical reasons.

The invoicing model determines how the loss of electricity production is invoiced, thus significantly determining the compensation that is to be expected. The grid operator must be informed of the operator’s chosen invoicing model for the loss of electricity production by 30 June 2021. The operator is initially free to choose, but the freedom to choose will subsequently be limited. It will only be possible to change the invoicing model once per calendar year (and only from fixed rate to ex post invoicing). Exceptions only apply if there are changes in the technology or if the EIV changes.

If meteorological data exist for the plant, and if these data can be transmitted automatically, ex post invoicing should generally be chosen. This invoicing method offers the closest approximation of the actual outage levels and provides clear advantages regionally. It does, however, call for the daily transmission of meteorological data.

If a plant does not have its own weather data, data from a reference plant can be used as a basis. In such cases, the new “Spitz Light” (ex post light) model is used. 

Plants without weather data will be invoiced according to the fixed rate invoicing method, which involves a continuation of the 15 minute period prior to a redispatch measure. This type of invoicing is only allowed if using the forecast model.

The plant operator must make the following data available to the EIV:

• Master data, changes to master data
• Unavailability (non-availability)
• Changing the invoicing model

If using the planned value model: planning data.

Implementing the new Redispatch 2.0 regulations will be very challenging for all market players, especially considering the complexity of the task and the short time period between determining all of the framework conditions and implementation. For this reason, plant operators should commence implementation as quickly as possible. We will approach all operators in order to incorporate the Redispatch 2.0 regulations in the direct marketing contracts.

The role of EIV must be communicated to the grid operator from 1 July 2021, as part of the initial transmission of master data. The implementation of the legal regulations must then be complete by 1 October 2021.