One of the major tasks of a Transmission System Operator is to maintain and secure the sensitive balance between energy produced and energy consumed within its control area at every moment. This equilibrium is continuously fluctuating and hence has to be balanced incessantly. These fluctuations are increasing due to a rising share of power input from more volatile renewable sources. The balancing energy necessary for maintaining this sensitive balance is fed into the grid in three steps (primary, secondary and tertiary control), all three reserves being procured by APG in market based tenders.
From July 3rd, 2013 APG and the Swiss TSO Swissgrid will launch a new cross-border cooperation regarding the procurement of primary control reserve, based on a TSO-TSO model. Both TSOs continue to organize their national tenders, but in a consecutive step merge the received bids into a “Common Merit Order List” to achieve a cost reduction for both control areas. There is no reservation of cross border capacities for the exchange of primary control.
This cooperation provides a win-win situation for all market participants. Balancing providers of primary control from both control areas thereby get access to an enlarged market to participate in, while the end-payers for primary control benefit from reduced costs.
Detailed information about the model and its organization can be found under the section “Cross border cooperation” of the APG Website. The results of the tenders are published on the tendering Platform of APG.