The location component is the specific geographical identifier of a connection on the electricity grid, defined by its EAN code. This component is essential for identifying the physical location where flexible capacity is offered or requested.
Within the redispatch process, market parties are asked to submit both a buy and a sell order via a trading platform. These orders must include a location component: the EAN code of the relevant connection.
This allows grid operators to determine which buy and sell orders are suitable to resolve a congestion situation in a specific area.