Unlocking flexibility for congestion management with redispatch bids: Requirements for a new bid structure

TenneT, the Dutch TSO, is facing challenges of allowing new connections to the existing grid due to an increase in network congestion. To mitigate congestion, one of the many measures is to use the flexibility of the electricity market. With market-based redispatch, market parties can offer to increase or decrease their electricity generation (or consumption) by submitting bids. These will be used to shift the location of generation (or consumption) to decrease the power flow of the grid element that otherwise would be violating the safety limits. However, the current bid structure does not offer sufficient flexibility to resolve congestion. At the same time, the application for bid submission will be replaced in the near future, creating an opportunity to reconsider the requirements for bids. This paper elaborates the main requirements regarding the new bidding structure attributes and that it should not be as complex as to take into account all the policy requirements but also to enable the purpose of efficient use for redispatch (costs). The requirements are supported with use cases that explain how the bid attributes will be used to efficiently create a congestion solution.