The objective of an efficient congestion management regime should be to minimize the overall economic costs. This applies both in the short term (selection of the most favourable means for congestion management in each case) and in the long term (trade-off between network expansion and congestion management). In congestion management, the grid operator procures local flexibility from flexibility providers. In general, congestion management can be carried out market-based or via a cost-regulated regime. Mixed forms (“hybrid model”) are also possible.

The objective of the study was the elaboration and regulatory assessment of a market-based redispatch approach as complement to the existing cost-based redispatch 2.0 in Germany in order to include decentralized, load-based flexibilities (“redispatch 3.0”) on a qualitative level.

In a first step, legal and regulatory requirements as well as corresponding implementation options in the legal and regulatory framework for a hybrid model (market-based and cost-based redispatch elements) were analysed. Afterwards, the need for adjustments in regulation for network operators, regarding taxes and levies was assessed. This was condensed into a separate legal report.

Based on this, different potential implementation variants for “Redispatch 3.0” were compiled and possible market and product designs for a hybrid model of market-based and cost-based redispatch were derived. In a further step, these options were evaluated and recommendations for action were developed for the preferred variants. Additionally, further research topics were identified.

Stakeholders from industry, academia, the legislator, and regulatory authority were involved in the work within the framework of a workshop and bilateral consultations.

Finally, the results were summarised in a report including corresponding recommendations for action.

The result showed the design variants of “Redispatch 3.0” that were considered advantageous. In addition, the necessity of the adaptation was motivated against the background of the impending shortage of positive redispatch potential in southern Germany. The legal implementation options and an indicative timetable for the introduction of “Redispatch 3.0” were also developed.

This enabled the customers to take measures to implement a market-based “Redispatch 3.0” immediately after project completion.