Changes

#Day-Ahead Scheduling - The day-ahead scheduling system allows market participants, including generators, retailers, and traders, to submit their electricity supply and demand forecasts for the next day. - Market participants submit bids indicating the quantity of electricity they are willing to buy or sell at various price levels. - Based on these bids, the market operator determines the optimal schedule for electricity generation and consumption to meet forecasted demand while minimizing costs. - The day-ahead market clears once a day, typically in the evening, and establishes the prices and quantities of electricity for the following day.#Merit Order System - The merit order system is used to dispatch power plants based on their marginal costs of generation. - Power plants are ranked in ascending order of their marginal costs, with renewable energy sources like wind and solar typically having the lowest marginal costs (since their fuel is free), followed by nuclear, coal, gas, and finally, peaking plants. - The system dispatches power plants in order of increasing marginal costs until the forecasted demand is met. - The clearing price in the day-ahead market is often determined by the marginal cost of the last unit of electricity needed to meet demand, which is typically set by a gas-fired or coal-fired power plant. - As a result, renewable energy sources are typically dispatched first when their output is available, helping to reduce the overall cost of electricity generation and promote the integration of renewable energy into the grid.

#Background - Germany, like many other countries, is transitioning its energy system towards a greater share of renewable energy sources such as wind and solar power. - Renewable energy generation is often decentralized and intermittent, which poses challenges for grid stability and management.#Original Redispatch Measures - The original redispatch measures allowed grid operators to instruct power plants to adjust their output or generation schedules to maintain grid stability. - This was primarily done to manage congestion on transmission lines and prevent overloading of the grid.#Redispatch 2.0 Enhancements - Greater Flexibility: Redispatch 2.0 introduces measures to enhance the flexibility of the electricity system, allowing grid operators to better manage fluctuations in renewable energy generation. - Market-Based Approaches: It encourages the use of market-based mechanisms to manage congestion and grid stability, such as the use of flexible market products and incentives for demand response. - Decentralization: Redispatch 2.0 recognizes the increasing decentralization of energy generation and consumption, encouraging the integration of distributed energy resources and demand-side management solutions. - Digitalization: The implementation of digital technologies and advanced grid monitoring systems is also a key aspect of Redispatch 2.0, enabling real-time monitoring and control of grid operations. - Cost Allocation: Redispatch 2.0 includes provisions for the fair allocation of costs associated with redispatch measures among market participants, ensuring that the costs are allocated efficiently and transparently.#Objectives - The primary objectives of Redispatch 2.0 are to improve grid stability, increase the efficiency of grid operations, and facilitate the integration of renewable energy into the electricity system. - It aims to achieve these objectives while minimizing the overall cost to consumers and ensuring fair and transparent market practices.