In redispatch, the grid operator attempts to reduce demand for transmission capacity using intraday bids from the market, or on-the-day bids. Its purpose is to reduce congestion in the power grid. With a redispatch bid, the CSP offers on behalf of a connected party to consume less or more than agreed upon at a specific location.
If there is congestion, the grid operator sends a market message to connected market participants. The market report will state where the congestion situation is expected to occur, in what periods and how much transmission capacity is involved. Connected market participants can respond by placing a flex order on a GOPACS affiliated energy trading platform (ETPA and EPEX SPOT).
However, the balance of the power grid at the national level should not be disturbed by this. Therefore, placing an order in the congestion area is always combined with a counter-order outside the congestion area. This will solve congestion without upsetting the balance on the energy grid.