EPEX SPOT’s Localflex Dutch market connection to GOPACS completed successfully
Arnhem / Paris, 28 June 2023. The connection between the EPEX local flexibility market solution (EPEX Localflex) in The Netherlands, and the GOPACS platform went live effectively on 27 June 2023. This cooperation establishes a significant milestone in the advancement of flexibility procurement, facilitating efficient congestion management and secure trading of flexible energy resources. The first transaction was completed by exchange member BCI (Brainchild Commodity Intelligence).
Especially in the context of more renewable generation in the power system, such efficient use of flexible generation can help to decrease the cost of the energy transition, also for the benefit of the European end-consumer.
EPEX SPOT is the largest power exchange active in Europe and this partnership will enhance the liquidity of the Dutch Power market. EPEX Localflex serves as a major marketplace for the trading of energy resources, allowing market participants to offer and purchase flexibility services in real-time. By connecting with GOPACS, the coordination platform to reduce congestion in the electricity grid, EPEX Localflex contributes enhanced functionalities and expands the reach of GOPACS to a wider network of participants. This successful go-live is a result of a close cooperation between both parties which has allowed to leverage synergies and expertise. The effort powered innovation is helping push the energy sector's transition towards a greener future.
"We are pleased to announce that we have achieved this important milestone in our partnership with GOPACS," said Ralph Danielski, Chief Executive Officer of EPEX SPOT. "The successful connection between GOPACS and EPEX Localflex opens up new opportunities for market participants, allowing them to physically contribute to the efficient management of the decentralized energy system. With grid congestions having become one of the central challenges to be addressed in the context of the energy transition, we propose a turn-key solution for market-based flexibility procurement."
Dennis Stufkens, Chairman of the GOPACS Foundation added, “We are delighted to have successfully established the connection between EPEX SPOT and GOPACS, following an extensive period of collaborative efforts. The integration of GOPACS with EPEX SPOT represents a significant milestone in the GOPACS strategy, enabling us to effectively address congestion bottlenecks within the Dutch electricity grid.”
The connection between EPEX Localflex and GOPACS sets the stage for increased reliability and dynamics in the local flexibility market. The overarching goal of the solution is an efficient use of demand-side flexibility for System Operators to resolve congestions on the grid.
Market participants who wish to offer flexibility via EPEX SPOT can get in touch with their key account manager or send an email to sales@epexspot.com. Market parties with flexible assets in the Netherlands that want to offer their flexible energy supply and/or demand (provided with location data) for use on GOPACS can send an e-mail to sales@gopacs.eu, contact their account manager of their Dutch grid operator, or visit www.gopacs.eu for more information.
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About EPEX SPOT
The European Power Exchange EPEX SPOT SE and its affiliates operate physical short-term electricity markets in Central Western Europe, the United Kingdom, Switzerland, the Nordics and in Poland. Furthermore, EPEX SPOT newly offers local flexibility markets solution and Guarantees of Origin auctions, to foster the integration of renewable energy sources and to enhance the engagement of consumers and producers in the power market.
As part of EEX Group, a group of companies serving international commodity markets, EPEX SPOT is committed to the creation of a pan-European power market. Over 300 members trade electricity on EPEX SPOT. 49% of its equity is held by HGRT, a holding of transmission system operators.
For more information, please visit www.epexspot.com.
About GOPACS
GOPACS is a collaboration of all Dutch grid operators. The platform is an important step to reduce capacity shortages in the electricity grid (congestion) and helps to keep the grid reliable and affordable. GOPACS is a unique initiative in Europe and originated from an active collaboration between the Dutch national grid operator (Transmission System Operator, TSO) TenneT and all regional grid operators (Distribution System Operators, DSO’s). More about GOPACS at www.gopacs.eu.
How GOPACS works
At the moment, participants offer their available flexibility on trading platform ETPA (Energy Trading Platform Amsterdam). Soon it can also be offered on the EPEX SPOT trading platform. At request from GOPACS, market parties can place their orders on these platforms. GOPACS then checks whether a combination of upward and downward adjustments offers a solution to solve the shortage of transport capacity (congestion) in the electricity grid. This is because counter orders are needed outside the congestion area to maintain the balance in the grid at national level. The network operator with the congestion problem pays the difference in the supply and demand price, the spread, so that the bids are activated and congestion is prevented. That is the price they pay to reduce congestion in the electricity grid.