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 new RR market was due to go live in December 2019. However, to allow more time for development, the TSOs have requested an extension or ‘derogation’. As the GB TSO, we have therefore issued an open letter to the industry to announce this development.

What is Wider Access to the BM?

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 in RR and WA?

Both markets are open to participants 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:

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:

To accede to both sets of codes, there are cost associated with acceding to the respective documents. For the CUSC, this is £5,000 plus VAT, while for the BSC this is £500 with details on further charges available at:

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:

Elexon Guidance

Further guidance on TERRE and Wider Access can also be found Elexon's website.