Storage or demand response capacity operators in zones selected for experimental tenders.
The energy transition is bringing about profound changes to the power system. RTE is supporting this transition by making adaptations to the network infrastructure that promote the large-scale integration of renewable energies and ensure that a high level of electricity quality is maintained.
RTE is designing these system changes while seeking a technical and economic optimum for the community which integrates social and environmental aspects.
For the dimensioning of the electricity transmission system, RTE already relies on the flexibility of RE generation, by incorporating the option of limiting it from time to time and temporarily when this would prevent the construction of network infrastructure for which the economic interest for the community is not greater than the disadvantages of these caps. This is the principle of optimal network dimensioning, described in the 2019 edition of the 10-year Network Development Plan (chapter "Adaptations").
RTE is currently dimensioning the network taking into account the limiting of RE generation from time to time and temporarily
To further this logic of optimisation, RTE is seeking to complete the panel of solutions taken into account for dimensioning of the network by integrating other flexibilities, such as demand response or storage. These additional flexibilities could, in some cases, represent a technically and economically relevant alternative to the adaptation of the network.
The evaluation of the relevance of storage or demand response solutions and, where relevant, the contracting of the flexibility service will be done through flexibility tenders.
Thus, the combination of the network dimensioning methods already implemented and the flexibility tenders will ultimately help in the dimensioning of the network by integrating the potential contribution of all flexibilities: generation, storage, consumption.
The flexibility tender procedure aims to extend the perimeter of flexibilities taken into account for the dimensioning of the network
This approach is part of RTE’s road map on the participation of flexibilities in congestion management, which provides for:
- The progressive generalisation of the publication of residual transmission constraints following the revision of S3REnR;
- The establishment of a framework adapted to the participation of flexibilities in congestion management;
- The launch of experimental tenders to test, in three to five zones of the network, the use of flexibilities in place of network adaptations.
The remainder of this page specifies the objectives and conditions for these experimental tenders.
Principle of flexibility tenders
Flexibility tenders are intended to pay for the reservation, over a multi-year period, of a flexibility capacity that can be activated in real time by RTE to limit congestion on the transmission system, when this flexibility is a solution for delaying or avoiding network adaptation.
The market participant providing the service commits to:
- The availability of a generation or consumption capacity (depending on the nature of the constraint and the location of the flexibility), over a commitment period (at a defined horizon and for a multi-annual duration) and according to technical characteristics (power, duration, lead time…) fixed contractually;
- The activation of this capacity, at the request of RTE.
The supplier of the flexibility service will receive a fixed remuneration for the capacity availability (€/MW/year) and a variable remuneration (€/MWh) in the event of activation.
The flexibility service may be provided by storage or consumption facilities, insofar as their location allows a significant influence on the structures of the public transmission system identified as being constrained in the experimental tenders.
The characteristics of the flexibility service (location, commitment period, dimensioning in terms of power, energy, activation conditions, etc.) depend on the constraint, and are therefore specific to each of the zones selected for experimental calls for tender.
The service offered by the market participants in the framework of the calls for tenders does not necessarily need to resolve all of the anticipated congestion on the network. However, the economic performance of a flexibility service will be assessed against the total cost including the service proposed by the market participant (fixed + variable share) and the management of residual constraints that would not be resolved by the proposed service. The flexibility service will then be considered competitive if this total cost is less than the total cost of the network adaptation solution.
During the experimental phase, only one allottee can be selected for each of the zones subject to a call for tenders.
The contractual framework associated with flexibility tenders
The implementation of flexibility tenders for congestion management will be accompanied by a specific contractual framework, which is the subject of consultation in the framework of the Storage WG, attached to the CURTE market access (CAM) and network access (CAR) commissions.
Information is available at concerte.fr (account creation required to access information).
The focus of this dialogue is:
- the contractual framework applicable to the capacity reservation for the network congestion service, which will include: eligibility conditions, service commitment, remuneration conditions, terms of modification and termination of the commitment, penalties for service unavailability or activation failure, articulation between the reservation mechanism and the activation mechanism;
- an experimental framework based on the balancing mechanism for activation of flexibilities, which will lay down the procedures relating to submitting balancing bids, load reduction checks, and the remuneration of activations;
- integration of flexibilities into dimensioning processes and methods of the RTE network.
Consultation on these themes will take place during the first half of 2021. This work will principally lead to the definition of the framework applicable to experimental tenders.
The procedure for the experimental flexibility tenders
Prior to the contracting, there is a two-step process:
1. Survey of interests
It aims to publish the zones identified by RTE as favourable for experimental tenders, to provide preliminary information on anticipated congestions in these zones, on the expected flexibility service, and assess the feedback of flexibility operators interested in providing such services.
For experimental tenders, the survey of interests phase will take place from
2. Calls for tender
Following the responses of market participants to the survey of interests, RTE will define the zones finally selected for tenders and will undertake in-depth studies aimed at further characterising the congestions and the expected flexibility service. These elements will enable the market participants to offer an adapted flexibility service, in their technical offer and the associated price, and RTE to compare the performance of these services with a network adaptation solution.
The launch of experimental tenders is planned for the second half of 2021.
The zones selected for the survey of interests
RTE has identified four zones for the survey of interests phase.
These zones are distributed throughout the territory with different types and different levels of constraints.
The documents published in the framework of the survey of interests specify the constraints and flexibility services expected in these zones.
How to participate in the survey of interests
Market participants interested in this process are invited to respond to the survey of interests, for which the procedure is outlined on the flexibilities page Flexibilities: tenders for congestion management - launch of the survey of interests.
You can direct all your questions relating to this procedure to firstname.lastname@example.org
- View the transmission constraints forecast in the S3REnR
- Consult the reception capacity of the grid (Caparéseau)
- Remuneration for your flexibilities
- Providing frequency ancillary services
- Participate in the balancing mechanism
- Participate in the capacity mechanism
- Ten-Year Network Development Plan (2019 edition)