What is Redispatch?
Terms briefly explained
Dispatch means to send, redispatch means to send again. In the energy industry, both terms are used when planning the utilisation of power plants:
In order to keep the electricity system and, above all, the transmission grids stable, power plant operators must notify the grid operators in advance of how much electricity they will produce. This is the schedule - also known as dispatch. Redispatch is a change to this schedule. Changes are necessary if demand or production does not behave exactly as predicted. There is then a risk of overloading or underloading the electricity grids.
Redispatch in the energy industry is a process in which transmission system operators specifically intervene in power plant utilisation planning in order to eliminate grid bottlenecks. If too much or too little electricity is flowing somewhere in the electricity grid, jeopardising grid stability, the operators order certain power plants to increase or decrease their production. This ensures that the capacity of the lines is not exceeded and security of supply is maintained.
Why is Redispatch important?
Thanks to redispatch, grid operators can ensure the stability of the electricity grid. Redispatch means that the output of power plants is adjusted so that the grids are not overloaded and the power supply remains secure. This is particularly important as the increasing feed-in of fluctuating renewable energies such as wind and solar energy is making it more difficult to operate the electricity grid. Ultimately, redispatch also helps to limit expensive grid expansion to the necessary level and thus minimise costs for end consumers.
Redispatch is therefore a key factor in the energy transition: It ensures security and efficiency in an increasingly decentralised and renewable energy system. It also gives grid operators greater process reliability and quality by improving data transmission and integrating an operations manager for each system.
How does Redispatch work?
The systems must be operated according to the planned value model or the forecast model. With the planned value model, operators or direct marketers send the forecast for a system to the grid operator. With the forecast model, the grid operator prepares the forecast for the system. The forecast model is very similar to the current feed-in management and will be the standard for smaller systems. The planned value model will become the standard for offshore parks.
Under redispatch, operators must transmit more standardised data to the grid operator and bear more responsibility than before with feed-in management. However, operators can transfer responsibility to a direct marketer. To do so, they must appoint the direct marketer as the person responsible for deployment (EIV).
What is Redispatch 2.0?
The Grid Expansion Acceleration Act (NABEG) came into force on 13 May 2019. It contains new requirements for the management of grid bottlenecks. The legal deadline for implementation was 1 October 2021.
After this date, renewable energy plants will no longer participate in feed-in management, but - like conventional power plants - in redispatch. This is referred to as Redispatch 2.0.
Specifically, renewable energy plants and CHP plants from 100 kW are to be included in redispatch. To this end, plants must be remotely controllable by a grid operator.
Introduction of Redispatch 2.0
The introduction of Redispatch 2.0 has been repeatedly delayed. While this model is being practised successfully at the transmission grid level, pilot projects with distribution grid operators were suspended in the late summer of 2023. In autumn 2023, the Federal Network Agency commissioned an expert opinion from the specialist consulting firm Consentec, which examined the further development.
According to the report, one reason for the delays was that the control technology in many renewable energy plants was not powerful enough. This meant that the required redispatch capacity could be partially activated. In addition, master data for plants as well as planning and real-time data are often not available correctly in the distribution grid. Forecasts and invoices for redispatch volumes also frequently show deviations. In contrast to the transmission grid, these data and processes as well as the necessary IT infrastructure are not yet as common and mature in the distribution grid
Legal basis of Redispatch 2.0
Redispatch 2.0 is regulated in Section 13a of the Energy Industry Act. It includes
- conventional generation
- Generation with renewable energy plants
- generation with combined heat and power plants
- and electricity storage.
Advantages of Redispatch 2.0
- The advantages of Redispatch 2.0 are manifold:
- Grid stability: Redispatch helps to maintain the balance between electricity generation and electricity consumption. This is important for a stable and reliable electricity grid.
- Cost savings: Through targeted management, more cost-effective power plants can be prioritised, which reduces the overall cost of energy. The expansion of the electricity grid can also be limited to the necessary minimum through more efficient utilisation.
- Integration of renewable energies: Redispatch makes it possible to better integrate fluctuating renewable energies such as wind and solar energy into the grid.
- Overall, redispatch contributes to a more efficient, cost-effective and environmentally friendly energy system.
Future outlook for Redispatch 2.0 in the energy industry
While redispatch has been in operation in the transmission grid for some time, the introduction of Redispatch 2.0 in the distribution grid and for the many smaller plants has been difficult. The reasons for this included problems with the control technology, faulty data and immature processes.
The Federal Network Agency (BNetzA) therefore commissioned the consultancy Consentec to develop proposals for changes. The Consentec report was published in April 2024. Building on this, the German Association of Energy and Water Industries (BDEW) also commented on the recommendations of the report in a position paper.
Both recommend further developing Redispatch 2.0 step by step. Sufficient lead times and mandatory tests should be adhered to. Redispatch measures in the transmission grid should continue to be balanced by the transmission system operator (TSO). For the distribution grid, Consentec proposes that the supplier's balancing group manager (BKV) should take over balancing. BDEW supports this transitional solution until a comprehensive transition to the planned value model is possible.
Criticism from BDEW
However, BDEW has also criticised the report. This includes the long-term transition for balancing in the distribution grid. BDEW proposes that relevant installations in the distribution grid should be successively transferred to the planned value model and balanced there by the grid operator. For installations in the adjusted forecast model, balancing should be carried out in the long term by the supplier's BRP and appropriate redispatch compensation should be paid for this. BDEW is also calling for clear specifications for the target model for balancing in the distribution grid by the Federal Network Agency (BnetzA). BDEW is also in favour of a review of market roles, an improvement in data quality and the introduction of processes suitable for mass production. This is the only way that those involved can operate the system efficiently.
A central aspect of the BDEW's assessment also concerns legal certainty. Accordingly, the framework conditions in energy law should be adapted, in particular Section 13a of the Energy Industry Act. Here, the supplier's BKV should be authorised to take over balancing in the distribution grid.
Further development of Redispatch 2.0
The Consentec report and the BDEW position paper provide important recommendations for the practical and legally compliant further development of Redispatch 2.0. It is now up to the BnetzA to draw up its own proposals and consult publicly on them.
Frequently asked questions about Redispatch and Redispatch 2.0
Who has to do Redispatch 2.0? All remotely controllable storage facilities with a capacity of 100 kilowatts or more must participate in Redispatch 2.0.
Why are redispatch costs rising? In Germany, the electricity grids need to be expanded in line with the increase in renewable energies. Renewable energies fluctuate depending on the weather and are also decentralised - i.e. not at the locations where the energy is consumed. In 2023, around 6.1 billion kWh of electricity from renewable energies could therefore not be used. That was around three per cent of the green electricity generated.
What is negative redispatch? In the case of negative redispatch, a generation plant is curtailed, meaning that its generation and feed-in are reduced or stopped completely.
