EXPLORE Report

26.10.2016

Dear reader,

Since the beginning of 2015 we, the TSOs of the EXPLORE countries – Austria, Belgium, Germany and the Netherlands – have been studying the possibility of integrating our FRR energy markets in the scope of the requirements of the draft guidelines of electricity balancing. First results were presented in a stakeholder workshop in June of this year. Now we are publishing a report (enclosed) in which we present our findings. On request of the NRAs of the EXPLORE countries, who have closely accompanied the study stakeholders are cordially invited to provide their feedback on the report until 21 November.

EXPLORE

The EXPLORE study is unique in the way in which it focuses on interlinking aspects of market design, both between intraday and balancing markets, as between design features of the FRR market itself. At this stage the conclusions are valid given several commonalities between the involved countries, which all operate incentive based balancing systems with predominantly aFRR and an imbalance settlement period of fifteen minutes. Extendibility is important to us and will be looked at further.

Findings

The EXPLORE study focuses on the consistency of the complete market model and identifies necessary points of harmonisation taking into account the draft guidelines of electricity balancing. Some important findings are related to the complexity in the application of marginal pricing in cross-border balancing markets, due to the close link with TSO operational needs, and to the role of respectively mFRR and aFRR in cross-border markets.

European context

Accompanying the report, we would like to share with you a formal response from EXPLORE NRAs which you can find enclosed. They put the work further in the context of the EBGL and related European developments. The current German stipulation procedure, which will be finalised at the end of 2016, forms a first step towards further changes in the future, which will occur after the entry into force of the EBGL. Likewise, the EXPLORE report defines a target in line with the implementation of the EBGL.

Request for feedback

Considering the nature of the EXPLORE study and its focus on consistency in market integration, stakeholder feedback is especially appreciated in regards to the questions in the enclosed document. Any feedback can be sent to kontakt@regelleistung.net. EXPLORE TSOs are able to take into account feedback received up to 21 November in their further work. The anonymised feedback will be shared with all NRAs of the EXPLORE countries.

Sincerely

EXPLORE TSOs