GOPACS - New algorithm unlocks more flexible capacity
Congestion management platform GOPACS now combines flexible bids from various trading platforms using a new algorithm. This allows grid operators to resolve congestion situations more quickly, while market participants see new opportunities in the electricity trading market.
The recent release of the GOPACS software makes more flexible bids usable for resolving congestion situations. This is good news for grid operators, as well as for market participants active in the congestion market of ETPA and EPEX SPOT. They notice that their bids are being used more frequently.
Is There a Market for Grid Congestion?
Due to the electrification of our economy, the power grid is under pressure. To reduce grid congestion, grid operators are working hard to expand the electricity network. Nevertheless, there is almost daily a moment when the grid is at risk of being overloaded somewhere.
Grid operators use the GOPACS congestion management platform to resolve these congestion situations with flexible capacity. This process is partly market-driven through so-called flex bids. In situations where less local power consumption is desired, parties can offer their already purchased electricity for sale. Conversely, when there is a need for more power consumption in an area, parties can purchase additional electricity there. This electricity trading takes place via specialized trading platforms and can be financially very attractive.
Combining Bids
The new GOPACS algorithm creates a single virtual order book from the connected trading platforms. As a result, different flex bids can be combined to match the scale of the sought-after congestion solution. The algorithm can also combine bids of different durations – 15min, 30min, or 60min. This means that more flexibility comes together, and local grid congestion can be resolved more quickly.
GOPACS Manager Platforms Jasper Kroondijk: “Using more or less power locally than planned causes imbalance on the grid. Previously, bids on a trading platform had to be in balance: here 1 MW less, there 1 MW more. Now we look across different trading platforms for a balance-neutral solution. This provides a larger solution space and more cost efficiency. So, for a CSP, it no longer matters which platform you use to make a bid.”
Future Perspectives
Mike ten Wolde, director of GOPACS, sees more opportunities: “British market parties have been providing up-regulation capacity from the UK via the BritNed interconnector for some time. That’s the beauty of the new functionality: besides different trading platforms, we can also connect other sources and include them with the GOPACS algorithm.”
Michiel Lensink, CEO of ETPA, expects larger trading volumes: “To solve the congestion problem in the Netherlands, it’s important that the barrier to participating in GOPACS is as low as possible. At ETPA, we ensure that parties have easier access to the market. The new algorithm increases liquidity, which is good for everyone.”
Jonas Tornquist, COO of EPEX SPOT, agrees: ” Solving grid congestion is central to the green transition everywhere. We are proud to be a gateway for System Operators, connecting in GOPACS in The Netherlands to Europe’s largest trading community and most performant trading system run by EPEX. The cross-platform activation provides new opportunities for market participants to commercialise their production. ”
About GOPACS
GOPACS is a collaboration between Dutch grid operators aimed at reducing grid congestion by better utilizing the electricity grid. The focus is on flexible capacity contracts and market-driven congestion solutions. GOPACS registers flexible capacity and makes it deployable when needed.