The spread is the difference between the price of a buy order and a sell order that are used via redispatch to help reduce grid congestion. When a grid operator identifies a congestion problem, the market is asked to submit flexible bids. The difference between the bid price and the ask price in these bids constitutes the spread.
The grid operator responsible for the congestion pays this spread to activate the bids and prevent overload. In practice, this means that the grid operator compensates for the price difference between the buy and sell orders, encouraging market parties to adjust their electricity production or consumption to help resolve the congestion.
Through this financial incentive—the spread—grid operators can effectively collaborate with market parties to maintain a stable and reliable electricity grid.
