TERRE (Trans European Replacement Reserves Exchange) aims at setting up and operating a platform capable of gathering all the offers for replacement reserves (RR) and to optimise the allocation of RR across the systems of the different Transmission System Operators (TSOs) involved.
The purpose of this early implementation initiative is the cross-national exchange of RR and to gather experience and knowledge, which will then contribute to the implementation, at European level, of the target model for cross-border electricity balancing as identified in the Electricity Balancing Network Code (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing).
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The goal of the said Network Code is the integration of balancing markets and for this purpose it is necessary to develop platforms for balancing energy exchange from replacement reserves, frequency restoration reserves (FRRs) with manual and automatic activation and imbalance netting.
With regards to the replacement reserves the legal basis for such platform are Article 19(1), Article 19(2) and Article 19(3) of the Commission Regulation (EU) 2017/2195 of 23 November 2017.
To support the implementation of the said Network Code, several pilot initiatives have been set up. TERRE is the pilot project validated by ENTSO-E for replacement reserve exchanges.
Operating reserves are used to correct a system imbalance. In some systems, TSOs are required to procure reeplacement reserves.These reserves are used to restore the required level of operating reserves to be prepared for a further system imbalance.
Active partners in the TERRE project are two TSOs in Great Britain, the TSOs from France, Spain, Portugal, Italy, Switzerland and Greece are active partners. Two others, one from Ireland and one from Northern Ireland are observers.
The Explanatory Document to the proposal of all Transmission System Operators performing the reserve replacement for the implementation framework for the exchange of balancing energy from Replacement Reserves (ENTSO-E, 18 June 2018, p. 3) underlined that:
- the TERRE project is the implementation project for the RR-Platform with the scope of implementing a multi-TSO coordinated exchange of RR balancing energy to comply with the Electricity Balancing Network Code,
- the model for the exchange of the balancing energy considered in this project will be the TSO-TSO model,
- the main objective of the TERRE project is to establish and operate an RR-platform capable of gathering all the RR standard products from TSOs’ local balancing markets and providing an optimized allocation of RR, covering the TSOs’ RR balancing energy needs.
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