Virtual power plant (VPP) is an aggregator that pools the capacities of various decentralised electricity resources to enter into transactions in the wholesale energy markets.

         
          
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30 June 2020

 

Q&A REMIT, III.7.15 - VPP's obligation to disclose inside information under REMIT 

 

 

Virtual power plants typically do not own generation facilities, but, in certain arrangements, the may control or be responsible for the operational matters of the facilities pooled under the VPP.

 

In Q&A on REMIT (point III.7.15 updated on 30 June 2020) the ACER refered to the question whether the VPPs have the obligation to disclose inside information under REMIT.

According to the regulator it depends on the business case, each situation needs assessment, particularly when, for example, the VPP’s IT platform (responsible for pooling and dispatching resources) breaks down.


 

 

"Under a virtual power plant or VPP scheme the incumbent party is obliged to sell some of his generation capacity to third party market participants (e.g. new entrants). The buyer of the VPP contract has the option to consume power of his VPP against the agreed virtual production cost, but not the obligation and hence the contract can be seen as a call option. VPPs have been imposed by competition authorities in Europe both as a remedy in merger cases and to address dominance."

 

Commission Staff Working Document, Accompanying the document Report from the Commission, Interim Report of the Sector Inquiry on Capacity Mechanisms {C(2016) 2107 final}, 13.4.2016 SWD(2016) 119 final, p. 29

 

 

 


Q&A REMIT

III.7.15. [30 June 2020]

Do virtual power plants (VPP) have the obligation to disclose inside information under REMIT?

A VPP is an aggregator that pools the capacities of various decentralised electricity resources to enter into transactions in the wholesale energy markets. Virtual power plants typically do not own generation facilities. But, in certain arrangements, the VPP may control or be responsible for the operational matters of the facilities pooled under the VPP. Depending on the business case, a VPP may fall under Article 4 obligations of REMIT. In case the VPP’s IT platform breaks down (responsible for pooling and dispatching resources), the responsibility to assess the need to disclose this information under Article 4 of REMIT always lies with the VPP.

 

 

 

 

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30 June 2020

 

Q&A REMIT, III.7.15

 

 

 

IMG 0744   Documentation

 

 

 

Commission Staff Working Document, Accompanying the document Report from the Commission, Interim Report of the Sector Inquiry on Capacity Mechanisms {C(2016) 2107 final}, 13.4.2016 SWD(2016) 119 final, p. 29

 

Q&A REMIT, III.7.15

 

 

 

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