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 anticipates a congestion issue, they send a market message asking for flexible bids on a connected trading platform. Market participants set their own buy or sell prices.
A party that temporarily consumes less electricity (or generates more) has surplus electricity to sell—and wants the highest possible price. Conversely, a party that consumes more electricity (or generates less) needs to buy extra power—preferably at the lowest possible price. The gap between these prices is the spread.
On regular energy markets, the spread is usually small: buyers and sellers meet halfway by adjusting their prices. But on the congestion market, prices are often farther apart, making it unlikely for a deal to occur without intervention.
That’s why the grid operator compensates for the spread—if the matched bids effectively help solve a congestion situation. This creates a financial incentive for market parties to temporarily adjust their generation or consumption.
For grid operators, paying this spread is more cost-effective than alternatives such as curtailment or equipment overload. Redispatch with spread compensation enables cooperation between grid operators and market participants—keeping the grid stable and future-proof.
