Flex bids are bids from market parties to temporarily adjust their electricity consumption or production at an agreed price. They form the basis of redispatch: the market mechanism grid operators use to resolve expected congestion on the electricity grid.
When grid operators expect the grid in a certain area to become overloaded, they initiate a redispatch request via GOPACS. A market message specifies where and when flexibility is needed.
Market parties — such as energy suppliers, CSPs, and large energy users — can respond with a flex bid. In this bid, they indicate how much flexibility they can provide and at what price, for example by temporarily producing less electricity, consuming more, or reducing their demand.
GOPACS compares and combines these flex bids and selects the most efficient solution to resolve the congestion, while ensuring that no new bottlenecks arise elsewhere on the grid. If a flex bid is accepted, the party temporarily adjusts its consumption or generation and receives compensation.
In this way, flex bids make redispatch possible: fast, targeted, and market-based congestion management.