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Beneficiaries

Storage or demand response capacity operators according to the characteristics of the zones selected for experimental tenders.

Context

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").

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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.

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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:

  1. The progressive generalisation of the publication of residual transmission constraints following the revision of S3REnR;
  2. The establishment of a framework adapted to the participation of flexibilities in congestion management;
  3. 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 storage, 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 flexibility service provider will benefit from a fixed remuneration for capacity availability (€ for a volume in MWh over a commitment period) and a variable remuneration, depending on each activation (€/Mwh).

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, which consists of the costs of network investment and constraint management that would not be solved by the network investment.

During the experimental phase, only one successful tenderer can be selected for each of the zones subject to a call for tenders. The different zones may be awarded to the same winner.

Experimental flexibility tenders: an experiment under consultation 

The conception of flexibility tenders for congestion management is the subject of consultation in the framework of the Storage WG, attached to the CURTE market access (CAM) and network access (CAR) commissions.

In the first stage (2021-2022) the consultation revolves around the experimental contractual framework applicable to the reservation of capacity and the activation of flexibilities for the network congestion service. It 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.

  • The draft model contract for flexibilities was published on 22/12/2021 on concerte.fr. The interested market participants are invited to participate in the consultation and to submit any comments by 31/01/2022.
  • The draft specifications of the experimental tenders will be proposed for consultation in the first quarter of 2022.

In the second stage (2022), the consultation will focus on  the integration of flexibilities into RTE’s dimensioning processes and methods, as well as on the criteria for identifying and defining the zones eligible for the implementation of the next Experimental Flexibility Tenders.

Information is available at concerte.fr (account creation required to access information).

The zones selected for the Call for Tenders 

RTE had identified four zones for the survey of interests phase, which took place from 12 January to 19 February 2021.

On the basis of the market participants’ responses to the survey of interests and in-depth network studies, RTE has communicated to the market participants, within the framework of the Working Groups of the consultation, that the first experimental tenders will be launched in the Sétier and Perquie zones. The Henri Paul and Aubusson zones are no longer part of the scope of experiment.

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RTE has carried out in-depth studies aimed at characterising congestion with more precision. The time series of the constraints represent the surplus power that the network element could not pass through. These constraint time series are expressed in MW and at hourly intervals, for 11 annual climate scenarios selected for their representativeness among 200 meteofrance climate scenarios.

Constraint time series can be downloaded here:

  • Constraint time series – Sétier zone
    This follows the assumption that 500 MW of renewable energy is connected. This assumption takes into account the powers already connected to date (300 MW) as well as the powers from the projects under development, which are expected to be completed within 3 to 5 years (200MW). This covers the entire capacity provided for in the current S3REnR.
  • Constraint time series – Perquie Zone 2025  
    This assumption is that 86 MW of renewable energy is connected. This assumption takes into account the powers already connected to date (74 MW) as well as the powers from the projects under development, which are expected to be completed within 3 to 5 years.
  • Constraint time series – Perquie Zone 2030
    This assumption is that 147 MW of renewable energy is connected, which is the power forecast for the S3REnR horizon (2030). This is the time horizon that will be taken into account by RTE for the definition of the constraint and the expected service in the framework of the call for tenders on the Perquie zone.

These elements must enable market participants to include in their technical offer an adapted flexibility service as well as the associated price. This data will allow RTE to compare the performance of the proposed services with a system adaptation solution.

How to participate in Calls for Tenders

A contract notice was published in the Official Journal of the European Union on 22/12/2021 (n°2021/S 248-658014) for two separate lots, corresponding to the Sétier (lot A) and Perquie (lot B) zones.

Market participants wishing to participate in the calls for tender are invited to apply by 31/01/2022 at the latest, in accordance with the procedures specified in the contract notice. This application is a prerequisite for participation in the tender of each of the two lots. Only candidates declared qualified at the end of the procedure will be invited to respond to the tender:

  • The call for tenders for the Sétier zone will be launched in the first quarter of 2022;
  • For the Perquie zone, the call for tenders will be launched at a second stage.

Contact

You can direct all your questions relating to this procedure to rte-ao-flexibilite@rte-france.com

Additional information