Market-based procurement of reactive power in accordance with Section 12h EnWG

At the beginning of 2023, the Federal Network Agency initiated a determination procedure in accordance with “Sections 12h (5), 29 (1) EnWG on the specifications and technical requirements for the transparent, non-discriminatory and market-based procurement of the non-frequency-based system service ”voltage regulation services (“reactive power”).

This determination was published on 25.06.2024 with the associated decision on the website of the Federal Network Agency in Germany.

The contracting of reactive power and / or work is carried out by grid operators of extra-high and high-voltage grids for suitable installations on their grid.

• Up to 12 months after determination, operators of extra-high and high-voltage grids are obliged to issue a market-based tender for reactive power in at least one region if reactive power is required.
• The grid operator must have initiated a market-based procurement process for all grid regions by 36 months after determination if there is a need.

The “Reactive power” procurement concept BK6-23-072 regulates the framework for

• Participation requirements
• Product definitions (e.g. secured or unsecured provision)
• Deadlines
• Publication
• Evaluation of bids and award of contract
• Remuneration and invoicing (provision outside the limits according to TAB is eligible for remuneration)
• Publication obligations, e.g. for model contract and price caps used

Provider consultation of the model contract for the period 07.04.2025 - 30.04.2025