Redispatch 2.0 refers to a grid-side control mechanism that enables grid operators to specifically intervene in electricity generation and consumption in order to prevent grid congestion. Redispatch 2.0 has been mandatory in Germany since October 2021 and significantly expands upon the previous redispatch procedure.
Mandatory by law since October 2021
Redispatch 2.0 is a legally regulated procedure in which grid operators ramp up or down power generation facilities, energy storage systems, or controllable consumption to eliminate impending or existing grid congestion. Unlike the earlier version of redispatch, Redispatch 2.0 involves not only conventional power plants but also renewable energy facilities, battery storage systems and controllable loads.
Why Redispatch 2.0 Replaces the Previous Approach
The expansion of renewable energy and the increasing decentralization of electricity generation are placing greater demands on grid stability. Electricity is increasingly being generated in locations where it cannot be consumed immediately or transmitted elsewhere. The goal of Redispatch 2.0 is to proactively prevent grid bottlenecks, ensure security of supply, make curtailment more efficient and fair, and integrate renewable energy in a way that best serves the grid.
Proactive Grid Planning and Financial Compensation
Redispatch 2.0 is based on forward-looking grid planning. Grid operators analyze forecasts for electricity generation, electricity consumption, and grid load. If a congestion is expected, the grid operator orders measures to be taken: reducing or increasing feed-in, adjusting storage charging or discharging processes, and controlling flexible consumers. The affected facilities receive financial compensation for the mandated deviation from the market schedule.
Financial compensation under Redispatch 2.0 is based on the principle of lost profits. Plant operators are to be placed in the same economic position as if they had followed their originally planned market schedule, for example from the day-ahead market, had been fulfilled.
Grid Operators, Plant Operators, and Direct Marketers in Data Exchange
Several stakeholders are involved in the Redispatch 2.0 process: transmission system operators, distribution system operators, plant operators, direct marketers, and dispatchers. These stakeholders continuously exchange data on forecasts, schedules, and grid conditions.
From the Power Plant Fleet to Integration Across All Grid Levels
Traditional redispatch was limited to large conventional power plants and transmission grids. Redispatch 2.0 significantly expands this approach: it incorporates decentralized generation facilities, integrates renewable energy sources, includes storage systems and controllable loads, and establishes standardized processes across all grid levels. As a result, Redispatch 2.0 becomes a key instrument in the grid-oriented energy transition.
Grid Stability Before Market-Based Optimization
Redispatch 2.0 affects both grid operations and the electricity market: Market schedules can be adjusted based on grid conditions; day-ahead market prices remain in effect but are technically overridden; and grid stability takes precedence over market optimization. Redispatch 2.0 thus supplements market-based mechanisms, such as the merit-order principle, with grid-side control.
New Requirements for Forecasting and Controllability
Redispatch 2.0 is relevant for companies that operate their own generation facilities, use battery storage, or utilize controllable loads. Affected companies must provide forecast and master data, enable controllability, and technically implement redispatch measures. At the same time, new requirements are emerging for energy management systems (EMS) and energy monitoring.
Storage as a Tool for Alleviating Local Congestion
Energy storage systems are playing an increasingly important role in Redispatch 2.0: They can be charged or discharged as needed, grid congestion can be balanced locally, and flexibility can be harnessed to benefit the grid. As a result, Redispatch 2.0 is closely linked to grid-optimized storage control, load shifting via storage, and demand-side management (DSM).
Distinction from related terms
Not to be confused with: Control energy (short-term compensation for frequency deviations), secondary control power (SRL) and tertiary control power (TRL) (submarkets of control energy), Congestion management in the power grid (umbrella term for measures to ensure grid stability), grid fees and surcharges (price components independent of redispatch), capacity market vs. energy market (market mechanisms for security of supply).
Conclusion: Grid-based control is not in line with market conditions
Redispatch 2.0 is a legally regulated procedure through which grid operators intervene in power generation, storage, or consumption to prevent grid congestion and ensure security of supply. For companies with generation facilities, storage systems, or flexibility options, this increases the importance of forecasts, controllability, and digital systems such as energy management and monitoring.
Frequently Asked Questions (FAQ)
Since when has Redispatch 2.0 been in effect in Germany?
Redispatch 2.0 has been mandatory in Germany since October 2021.
Who is affected by Redispatch 2.0?
This applies to companies with their own generation facilities, battery storage systems, or controllable consumption equipment that must provide forecast data and ensure technical controllability.
How does Redispatch 2.0 differ from traditional redispatch?
Unlike traditional redispatch, Redispatch 2.0 incorporates not only large conventional power plants but also distributed generation, renewable energy sources, storage facilities, and controllable loads across all grid levels.
