
Capacity Limitation Contract (day-ahead)
1Market parties that have a capacity limitation contract with a grid operator submit a bid, as agreed, to reduce their power output.
With a bidding obligation contract, you commit to making flexible power available at certain times. This means you can reduce your electricity consumption or increase your production at pre-agreed times to help reduce congestion on the grid. These contracts provide stability and predictability for both the grid operator and your company, and you receive a market-based fee for the flexibility provided.
Mandatory Bidding Contract Redispatch (intraday)
If you offer your flexible capacity on the day it is needed, we refer to it as intraday and redispatch.Redispatch in Two Forms
Within redispatch, there are two types of contracts:
The bid obligation contract pertains to mandatory redispatch. This involves capacity that is needed intraday, meaning on the same day. For more information or to sign a bid obligation contract, contact your network operator. This contract is directly established between you and your network operator and is executed via GOPACS.Mandatory Bidding Contract
Congestion is the situation where the demand for transmission of electricity exceeds the available transmission capacity. So there is a shortage of transmission capacity on the power grid. If this is structural, the grid operator will increase the capacity of the electricity grid or expand the grid. However, this is a multi-year process. In the meantime, by shifting locations where electricity is used and delivered, the grid operator is trying to reduce demand for transmission. This is done with the help from the market such as wholesale customers, aggregators and energy suppliers. They can help if they can shift their consumption or generation of electricity to another time. Energy can also be temporarily stored. This creates the desired flexibility and can prevent or reduce peaks in the power grid. Op het moment dat een netbeheerder een tekort aan transportcapaciteit (congestie) in het net verwacht, vragen wij aan de markt om te helpen dit op te lossen door hun energieverbruik wat te sturen, de flexbieding. This steering creates flexibility. For example, a cold store can turn off its freezer cells for two hours at the time of peak demand without affecting the temperature. This makes additional capacity available for another customer. For more information on congestion, see the ‘About congestion management’ page. Congestion management is the set of measures deployed by network operators to mitigate the effects of congestion and prevent the network from becoming overloaded. Whereas congestion indicates the problem of capacity shortage, congestion management focuses on the practical solutions to deal with these bottlenecks. Congestion management is crucial for a stable, affordable and sustainable energy supply in the Netherlands. It will become increasingly important as power demand and the share of renewables continue to grow. Read more about congestion management here. If the supply of or demand for electricity is greater than the electricity grid in a given region can handle, the grid operator calls on the market to use or generate more or less electricity. The market includes parties such as energy suppliers and aggregators and wholesale customers. These companies then indicate the price at which they wish to do so, called flex bid (also called congestion bid). If the flex bid is taken, the market participant receives a fee for it. The amount of electricity transmitted through the grid varies from moment to moment. The more capacity used, the sooner a spike in usage can cause the power grid to overload. By shifting times when electricity is used or fed back, grid operators can better match supply and demand to avoid overloading the electricity grid. To avoid those peaks on the grid, grid operators ask the market to temporarily defer or reduce their electricity consumption (or generation) for a market-based fee. We call this a flex bid. Grid operators increasingly face grid congestion. GOPACS allows participants to easily help resolve congestion situations with their available flexibility. Participating in GOPACS also provides additional earning opportunities with your flexible assets. The ability of parties in the congestion area and parties outside it is needed. This is because grid operators must maintain balance on the grid at all times. GOPACS thus provides a win-win situation: grid operators can solve congestion situations and participants can generate additional revenue.Frequently Asked Questions about the Mandatory Bidding Contract
What is congestion?
What is congestion management?
What are flex bids?
Why are flex bids necessary?
What are the benefits of participating?
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Do you have flexible capacity available?