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Mandatory Bidding Contract

A Mandatory Bidding Contract is an agreement between a grid operator and a party with flexible capacity, such as a large electricity consumer or generator. Under this contract, the participant commits to offering flexible capacity via redispatch on the intraday market in the event of a congestion situation. This helps to prevent overloading of the electricity grid.

Key characteristics of a mandatory bidding contract:

  • Compensation: The participant receives financial compensation for making flexible capacity available and for its activation. This includes a fixed monthly availability fee, a call-up fee per activation request, and a price per MWh. The MWh price is determined on the energy trading market.
  • Operation: When the grid operator expects a congestion situation, the participant is asked via the GOPACS platform to submit a bid through one of the connected trading platforms. GOPACS then selects the most efficient and cost-effective bid. The selected party temporarily adjusts electricity consumption or production according to the agreed terms.
  • Contract duration: The contract typically remains in effect until the planned grid expansion in the relevant area is completed.

Participation requirements:

  • Contracted grid capacity: The participant must have a minimum contracted grid capacity of 100 kW.
  • Flexibility: The participant must be able to quickly adjust electricity consumption or production at the request of the grid operator.
  • Location: The participant must be located in a region where transport scarcity has been declared and where congestion management is applied.

Mandatory bidding contracts within GOPACS:

GOPACS is a platform established by the Dutch grid operators to utilize market-based flexible capacity in order to reduce grid congestion. Through GOPACS, mandatory bidding contracts can be used to activate flexibility on the intraday market. By entering into such a contract, companies contribute to a stable and reliable electricity grid and receive compensation for the flexibility they provide.

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GOPACS is the congestion management platform of the Dutch grid operators