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DTe and TenneT Take Measures to Increase the Supply of Reserve Power

From research carried out jointly by the Office of Energy Regulation (DTe) and TenneT, the operator of the national transmission grid, it appears that the difference between the supply and demand of reserve power gradually declined in 2003 compared to 2002. To increase the supply of this power (the production capacity with which TenneT maintains the balance of the grid), DTe and TenneT are preparing a measure with a view to publishing Delta-signaal after the summer. This will increase the transparency of the electricity market and improve the operation of market forces.

The aim of this measure is to provide market players with an incentive to make control and reserve power available and to supply this power to TenneT . Market players, who are not active on the market for control and reserve power, can deduce from their bids what the system imbalance is. By publishing Delta-signaal, other players will see whether they can make a meaningful contribution. The measure will result in the elimination of information asymmetry between market players.

In their report, DTe and TenneT also indicate how far demand for reserve capacity can be reduced through the introduction of a so-called 'adjustment market'. A market such as this offers players the possibility of balancing any potential imbalance, which these players observe shortly before their energy programme commences. DTe and TenneT are of the opinion that market players must take the initiative in setting up such a market and will carry out supplementary research to ascertain how a market such as this can be facilitated.

The report 'Transparantie voor onbalanssystematiek' ('Transparency for an Imbalance System') is available as of today from DTe's website under the heading 'Publications'.