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.
The grid operators currently envisage the following time frame for the first procurement in accordance with the stipulation:
- 12 months after determination, operators of high-voltage grids are obliged to invite tenders for market-based reactive power in at least one region if reactive power is required.
- The grid operator must have initiated market-based procurement for all grid regions by 36 months after determination if there is a demand.
- The first tenders will be announced by the TSOs on Netztransparenz.de by mid-2025. Individual transmission system operators start with tenders in Q1.
First awards to suppliers for reactive power and reactive energy to be made by the end of 2025
The “Reactive power” procurement concept BK6-23-072 regulates the framework for
- Conditions for participation
- Product definitions (e.g. secured or unsecured provision)
- Deadlines
- Announcement
- 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. regarding model contract and price caps used
Further details can be found in the individual tender announcements of the respective TSOs.