Development of a product design within the framework of Redispatch 3.0, considering industry requirements

Together with TenneT TSO, we investigated the question of how incentives for industrial flexibility can be created to participate in market-based redispatch. Specifically, we looked at which changes and additions to the market design from the Redispatch 3.0 study are necessary for this.  

In October 2022, TransnetBW, TenneT and E-Bridge presented the framework conditions for the design of Redispatch 3.0 in their study. Although such market-based redispatch is required by the European Commission in the regulation on the internal market for electricity, it has not yet come into force in Germany. However, industrial customers were not explicitly the focus of the market design considerations at the time. For Germany, the requirements of the primary industry should therefore be given greater consideration in the specific product design. For this reason, this study has looked at the concerns and restrictions of industrial flexibility. The aim is to create an attractive market design for market-based redispatch. 

As part of our study, we first compiled a structured overview of established product designs for market-based congestion management from research and selected countries. Building on this, we developed concrete proposals for further development in line with the framework conditions of the Redispatch 3.0 study, focusing on increasing the attractiveness for the industry. This required close cooperation between the various FfE teams in order to incorporate structured input from industry experts at FfE from the perspective of different sectors of the economy early on in the design process. This helped to identify the suitability of different design approaches as well as implementation hurdles in various sectors of the economy. The validation of the developed product designs was carried out by interviewing industry representatives before the collected recommendations were handed over to the client. 

The entire study can be found in the download section of this article (available in German only). 

The complete study (available in German only) can be downloaded from the link provided in this article.