The discussion around market-based redispatch mechanisms in Germany is characterized by concerns that are in part justified, but often strongly driven by theoretical modeling. In particular, the debate focuses on potential risks such as strategic bidding behaviour (“inc-dec gaming”) and the exercise of local market power.

In a recent article published in the German trade journal et – Energiewirtschaftliche Tagesfragen, our consultants Gerald Blumberg and Christina Kockel assess this criticism together with colleagues from academia and industry. Co-authors include Prof. Dr. Aaron Praktiknjo, Marius Tillmanns and Jakob Kulawik (RWTH Aachen), as well as Dr. Lars Nolting and Jasmin Denner (TenneT) and Nikolai Klempp (TransnetBW).

A key takeaway of the article is that many of the underlying assumptions have limited transferability. Much of the argumentation is based on theoretical models whose applicability to real-world market conditions is inherently constrained. While the identified risks cannot be dismissed outright, their actual relevance cannot be assessed on the basis of theoretical considerations alone.

Against this backdrop, practical testing becomes increasingly important. This is precisely where the DataFleX project comes in: not as a predefined market mechanism, but as a targeted, large-scale trial under real system conditions.

At the same time, the discussion should place greater emphasis on the opportunities. Given that dynamic network tariffs for low-voltage flexibility are currently not being pursued further under AgNes, Redispatch 3.0 – with its flex band concept – represents a key option for leveraging existing flexibility potentials for system benefit, without requiring additional investment in new assets.

As part of DataFleX, E-Bridge supports TenneT on market design questions and TransnetBW in the practical implementation of the pilot. Initial interim results indicate that the identified risks can be effectively mitigated through appropriate monitoring and targeted market design, while at the same time unlocking existing potentials.

Gerald Blumberg | Christina Kockel

Your contact

Gerald Blumberg
Principal Consultant