Balancing Energy in Europe
Check out the newest part of our series on Balancing Energy in Europe. We present you the second platform Trans European Replacement Reserves Exchange, or short TERRE, which serves the European target model for cross-border electricity balancing.
Launched on January 6th, 2020, the platform enables the exchange and optimized activation of a standard product for Replacement Reserves (or the ‘tertiary’ product for reserve power) across Europe. Today, already 6 member TSOs are effectively enabling Replacement Reserves cross-border exchanges through TERRE, with further TSOs acting as observers. The auction is run by a central platform called LIBRA, which optimizes the needs submitted by TSOs with the bids posted by providers.
The introduction of the platform has considerable implications for all market participants. TSOs benefit from an additional process for conducting energy balancing auctions and access to additional flexibility. Meanwhile, balancing energy providers and traders have a new international platform to monetize their portfolio flexibility. Estimates suggest that the potential increase in social welfare could be in the range of €16 billion to €43 billion on an annual basis by 2030.
To all energy traders providing and trading balancing energy: Have you already checked whether your TSOs are offering access to TERRE? It could be another channel to optimize your assets with more flexibility!