A study conducted by the Institute for Climate Protection, Energy and Mobility (IKEM) as part of the SysZell project examines the potential of an innovative market-based procurement concept for Immediate Frequency Stabilization (IFS) in the decarbonized electricity system 2045+ and shows: Despite necessary legal adjustments, market-based procurement of IFS is possible in principle.
The transformation of the energy system towards renewable energies is making the provision of system services – i.e. technical services to stabilize the electricity grids – increasingly important. At present, IFS is mainly provided by large fossil-fuel power plants. As these plants will no longer play a role in the future energy system, the requirements for the procurement concept for IFS will change in a decarbonized electricity system in 2045+.
In view of this, the SysZell project is researching the further development of system services. The project partners at the University of Duisburg-Essen and the Rhineland-Palatinate Technical University of Kaiserslautern-Landau have developed an innovative procurement concept with which IFS can be provided in a market-based manner in the decarbonized electricity system 2045+. The study subcontracted to IKEM examines the conditions under which this approach can be legally implemented.
Simon Großmann, co-author of the study, explains:
“Our study shows that a market-based procurement mechanism for IFS is possible in principle in an electricity system based on renewable energies – if a coherent legal framework is created. The existing principles of a transparent, non-discriminatory and competitive process must be observed.”
The study presents the legal status quo and identifies the need for fundamental adjustments. These include, in particular, the design of suitable market mechanisms, the introduction of clear prequalification criteria, consideration of interdependencies with existing balancing energy markets and ancillary services and the guarantee of system security. In addition, the study recommends further legal adjustments, including a coordinated determination of demand for ancillary services by the transmission system operators and the creation of a market for very fast balancing energy (fast frequency response) for the effective integration of the new concept.
Study author Leonie Durschang adds:
“Despite the expected elimination of existing large-scale fossil fuel power plants, the market-based procurement of IFS can represent an important building block for system security in the decarbonized electricity system 2045+. The implementation of the concept developed in the SysZell project is legally possible and is in the hands of the Federal Network Agency.”
The SysZell project is funded by the Federal Ministry for Economic Affairs and Energy.
