Replacement Reserve (RR)
European Union Electricity Market Glossary


 

Replacement Reserve (RR) in the European Union Internal Electricity Balancing Market means operating reserve used to restore the required level of operating reserves to be prepared for a further system imbalance.

 

This category includes operating reserves with activation time from 15 minutes (in Continental Europe) up to hours.

 

For Replacement Reserves the European integration model for a future EU-wide Balancing Market should be based on the TSO-TSO Model or, when a TSO does not use the RR process as part of its Load-Frequency-Control Structure, should be based on the TSO-BSP Model.

 

The average price for the Replacement Reserve has a vital and commercially sensitive interconnectedness with the Imbalance Price. The Network Code on the Electricity Balancing stipulates that:

 

1. The Imbalance Price for shortage must not be less than:

 

(a) the weighted average price for activated positive Balancing Energy for Frequency Restoration Reserves and Replacement Reserves (RR); or

 

(b) in the event that no activation of Balancing Energy in either direction has occurred during the Imbalance Settlement Period, the value of the avoided activation of Balancing Energy for Frequency Restoration Reserves or Replacement Reserves.

 

2. The Imbalance Price for surplus must not be greater than:

 

(a) the weighted average price for activated negative Balancing Energy for Frequency Restoration Reserves and Replacement Reserves; or

 

(b) in the event that no activation of Balancing Energy in either direction has occurred during the Imbalance Settlement Period, the value of the avoided activation of Balancing Energy for Frequency Restoration Reserves or Replacement Reserves.

 

3. Imbalance Settlement Price, in the event that both positive and negative Balancing Energy for Frequency Restoration Reserves or Replacement Reserves have been activated during the same Imbalance Settlement Period, is to be determined for shortage and surplus based on at least one of the above principles.

 

 

See also:

 

TERRE (Trans European Replacement Reserves Exchange)

 

Balancing Energy

 

- Frequency Containment Reserve (FCR),

 

Frequency Restoration Reserve (RR),

 

- general requirements for Standard Products for Balancing Capacity in the EU Internal Electricity Balancing Market.

 

 

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Last Updated on Saturday, 19 March 2016 21:21
 

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