Federal Network Agency Sets New Rules for Tendering Minute Control Reserve

Following the publication of new rules for tendering primary and secondary control reserve in April this year, the German grid regulator, the Federal Network Agency (BNetzA) has set new rules for tendering minute control reserve. The guideline shall facilitate access to the control reserve market for new and for smaller market entrants, while at the same time creating more flexibility and thus more competition.

Key elements of the new rules are a automatic activation of the minute control reserve, the reduction of the minimum supply offer (Mindestangebotsgröße) from 15 MW to temporarily 10 MW and ultimately 5 MW and the possibility to make block offers. Besides, bidders can supply minute control reserve from power plants that are backed by plants of third parties. In addition, pooling power plant capacities to provide control reserve has been facilitated. The rules largely resemble those for primary and secondary control reserve.

The new rules have to be implemented by 1 December 2011 with the exception of the regulations regarding the automatic activation of the minute control reserve and block offers, which have to be implemented by 2 July 2012.

In Germany the four transmission system operators are responsible for procuring the necessary control reserve to balance grids by holding tenders. Their internet portal can be accessed here.

As BNetzA points out, the new guidelines for tendering primary and secondary control reserve have already shown the desired effect. Various new entrants have entered the market or are in preparation to do so. While there is already a greater number of market participants in the market for minute control reserve, this number should be further increased by the new rules, BNetzA says.

Source: Federal Network Agency

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