Buy-Order (redispatch)

A buy order is a bid in which a market party offers to temporarily increase electricity consumption or reduce generation compared to its original schedule. Buy orders are used in the redispatch process to resolve expected congestion within 24 hours (intraday).

When is a buy order used?

When grid operators expect congestion in a specific area, they send a market message via GOPACS. Market parties can then place buy and sell orders on connected trading platforms.

With a buy order, you:

  • increase local consumption, or
  • decrease local generation

You offer your flexibility in kW or MW and set your own bid price.

The GOPACS algorithm matches buy and sell orders in a way that resolves congestion without creating new constraints elsewhere. The most cost-efficient combination is selected. The required buy order with the highest relevant bid price is activated.

 Why a buy order when reducing generation?

A buy order is also required when reducing generation. Producers sell electricity in advance and therefore have a delivery obligation. If they generate less to relieve congestion, they need to buy electricity to meet that obligation.

This purchase is done through a buy order. This keeps the market balanced while relieving congestion locally.

Buy orders in generation and consumption congestion

Generation congestion
More electricity is produced in an area than the grid can transport. In that case, the market message calls for local buy orders. By increasing consumption or reducing generation, less electricity remains available for transport.

A local buy order is always matched with a non-local sell order to maintain the national balance.

 Consumption congestion
More electricity needs to be transported into an area than the grid can handle. In that case, local sell orders are requested (reduce consumption or increase generation). These are matched with non-local buy orders.

With a buy order, you deploy flexibility exactly where and when it is needed. This helps maintain grid balance while creating value from your flexibility.

Generation Congestion Consumption Congestion
Situation Too much electricity in the congestion area Too little electricity in the congestion area
Consequence More electricity must leave the area than can be safely transported More electricity must enter the area than can be safely transported
Desired action Reduce generation or increase consumption Reduce consumption or increase generation
Inside congestion area Buy orders Sell orders
Outside congestion area Sell orders Buy orders

 

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