€25 Million Saved in One Year Thanks to ALPACA Transmission System Operator Cooperation

Thanks to the ALPACA balancing capacity cooperation — established by transmission system operators from Austria, the Czech Republic, and Germany — cross-border procurement of balancing capacity has saved €25 million in system operating costs since the cooperation was launched in September 2025.

Balancing capacity consists of energy volumes that are reserved at a certain cost and can be activated as needed to stabilize the frequency of the electricity grid in the event of deviations. Traditionally, transmission system operators procure balancing capacity on national markets.

Larger supply market thanks to voluntary cooperation

Against this backdrop, Austria, the Czech Republic, and Germany voluntarily established the ALPACA cooperation, enabling the cross-border procurement of balancing capacity. The acronym ALPACA stands for Allocation of Cross-zonal Capacity and Procurement of aFRR Cooperation Agreement. The aim is to create a larger supply market, increase competition, and thereby reduce procurement costs.

4.5 percent reduction in total costs

In its first year of operation, procurement costs in the region were reduced by €25 million, equivalent to 4.5 percent of total costs. Just under 55 percent of the savings resulted from negative balancing capacity — reserves that can be activated to reduce electricity in the grid — while the remaining 45 percent resulted from positive balancing capacity, which can be activated to increase electricity in the grid. ALPACA’s success demonstrates the benefits of cross-border cooperation. 

About Austrian Power Grid (APG)

As independent transmission system operator Austrian Power Grid (APG) is in charge of ensuring the security of the electricity supply in Austria. With our high-performance and digital electricity infrastructure and the use of state-of-the-art technologies we integrate renewable energies and reduce the dependency on electricity imports, we are the platform for the electricity market, and we provide access to reasonably priced electricity and thus create the basis for Austria as supply-secure and future-oriented industrial and business location and place to live. The APG grid totals a length of about 3,500 km and is operated, maintained, and continuously adapted to the increasing challenges of the electrification of businesses, industry, and society by a team of approximately 1,000 specialists. 67 substations are distributed all over Austria and the majority is operated remotely. Thanks to our committed employees Austria had a security of supply of 99.99 percent also in 2025 and thus ranks among the top countries worldwide. Our investments of 680 million euros in 2026 (2025: 595 Mio., 2024: 440 million euros, 2023: 490 million euros) are a motor for the Austrian economy and a crucial factor in reaching Austria’s climate and energy targets. Until 2035 APG will invest a total of approximately 9 billion euros in grid expansion and renovation projects.