Replacement Reserve (RR)
Replacement Reserve is a harmonised service across participating European TSOs for the provision of both an increase and decrease of active power.
What is Replacement Reserve?
As part of the Electricity Balancing Guidelines, which aims to establish a pan-European market for Balancing Energy, a new product has been created, RR, which can be used across participating TSOs. The service is expected to go live by December 2019, though participants are able to pre-qualify from 28th February 2019.
Alongside RR, changes are being made to the Balancing Mechanism to make it more accessible to non-traditional providers and aggregators. Participants interested in Wider Access are able to pre-qualify using the same links on the right hand side.
Who can participate?
RR is open to providers that are parties to the Connection Use and System Code (CUSC), either as a Generator, Supplier or Virtual Lead Party. Further information on the CUSC can be found at: https://www.nationalgrideso.com/codes/connection-and-use-system-code-cusc
Participants will also need to accede to the Balancing and Settlement Code (BSC) for which there are associated costs. Further information can be found at: https://www.elexon.co.uk/bsc-and-codes/balancing-settlement-code/
For both sets of codes, there are cost associated with acceding to the respective documents.
Virtual Lead Parties
As part of P344 and GC0097, a new market participant type has been created, VLPs, who will be able to register Secondary BMUs for the provision of balancing services to the System Operator. An introduction to VLPs can be found here: https://www.nationalgrideso.com/codes/european-network-codes/meetings/introduction-virtual-lead-party
Further guidance on TERRE and Wider Access can also be found Elexon's website. https://www.elexon.co.uk/about/trading-electricty-market/terre-wider-access/