According to Article 2(17) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing, ‘self-dispatching model’ is a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power generating facilities and demand facilities are determined by the scheduling agents of those facilities.
The same definition is in this regard used in Article 2(30) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast).
The self-dispatch system represents one of the two types of dispatching arrangements currently in parallel existence in the European electricity markets (the other being the central dispatch system).
ACER's Recommendation No 03/2015 of 20 July 2015 on the Network Code on Electricity Balancing observes the dispatching model is essentially an approach to how the generation schedules and consumption schedules for dispatchable power generating facilities or demand facilities are determined.
Pursuant to the ENTSO-E Supporting Document for the Network Code on Electricity Balancing of 6 August 2014 self dispatch is a dispatch arrangement where resources determine a desired dispatch position for themselves based on their own economic criteria to provide commercial independence within a market.
The physical dispatch can be either carried out by the resource directly, tracking their desired output nomination or by following dispatch instructions from the Transmission System Operator (TSO), which has been determined based on resources' nominations.
Imbalance charges/penalties are levied on market parties which deviate from their notified position.
Commitment decisions, which take into account generating unit constraints, are made by the generators in conjunction with the demand elements they are balancing with.
Generators alter their output to maintain the balance between generation and served demand.
Before real-time, generators submit bids to the TSO which corresponds with self-schedules of their units.
Bids are used by the TSO to dispatch additional generation needed to balance and secure the system in real-time.
Most of the energy markets in Europe are based on the self dispatch principle.
According to Article 14(2) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing, each TSO shall apply a self-dispatching model for determining generation schedules and consumption schedules.
TSOs that apply central dispatching model at the time of the entry into force of the said Regulation are required to notify to the relevant regulatory authority in order to continue to apply a central dispatching model for determining generation schedules and consumption schedules.
Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast), Article 2(30)
Electricity Balancing Network Code (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing), Article 2(17), Article 14(2)