Balancing with two helmsmen at the helm
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The grid operators have submitted a proposal to ACM to limit the control speed of installations. Market parties regularly react too strongly and on too large a scale to near real-time information about imbalance prices and volumes. Surpluses can then immediately turn into shortages, which threatens to make the European grid unstable. In order to limit these oscillations, TenneT wants to set limits on the control speed: a maximum of 20% of the maximum capacity per minute, or a maximum of 100 MW per minute if that is less than a maximum of 20%.
Given the seriousness of the situation, the proposal is understandable, partly because this proposal requires only limited adjustments to the regulations. However, all things considered, it is a sign of weakness, an emergency repair that ignores important causes of the problem and therefore entails higher social costs than necessary.
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