Glossary

Trans European Replacement Reserve Exchange (TERRE)

This page gives an overview of TERRE which is a European project to implement a new Replacement Reserve (RR) balancing product.

This page will detail the current information regarding TERRE.

Industry testing

Elexon deployed the technical changes necessary to enable GB industry parties to join the central TERRE platform and trade in the European electricity market in May 2020. We are now working closely with National Grid ESO to conduct bilateral testing of Trans-European Replacement Reserve Exchange (TERRE) interfaces.

We are completing Cycle two of three testing cycles, and supporting National Grid ESO in their planning for end-to-end testing. Our support to both NGESO and participants is planned to continue to the end of October 2020.

Testing strategy 

National Grid ESO has published our updated joint testing approach and strategy. This sets out revised timescales for our joint plans for industry testing.  As our testing plans continue to progress, we will share sample output files with the parties who are participating in our testing from mid-August. 

We will be in a position to extract these from the later stages of the bilateral testing we are carrying out with National Grid ESO.  We are also planning to provide connectivity for participants to consume BMRS data during the end-to-end testing phase ahead of the go live which is currently scheduled for the end of October 2020. 

‘Getting Ready for TERRE’ webinar

Elexon and National Grid ESO jointly hosted the ‘Getting Ready for TERRE’ webinar .

Watch the recorded presentations on the National Grid ESO’s website, together with a comprehensive Q&A. 

The sessions covered:

  • Pre-Qualification and how to participate and trade in the
    Replacement Reserves market
  • Data submissions
  • TERRE Settlement
  • Industry testing

TERRE Standalone Release

There will be a TERRE Standalone Release to complete the implementation of the TERRE arrangements. The Release will enable Elexon to receive TERRE market data from National Grid and include it in settlement calculations. The data and settlement results will be published on BMRS and in settlement reports.

Going live

The central TERRE platform (known as LIBRA) went live on 6 January. It was launched by Transmission System Operators (TSOs) from eight countries, but so far only CEPS (Czech Republic) and Spain Red Eléctrica de España S.A. (REE) Spain have joined. 

The remaining countries will be joining in waves until 2021/22.  Those participating include Great Britain through National Grid ESO, France through its transmission system operator RTE, as well as Portugal, Poland, Switzerland and Italy.

Derogation request – granted

Ofgem’s decision to grant the request confirms its view that National Grid ESO can be exempt from using the European platform for the exchange of balancing energy from the replacement reserve process until 30 June 2020

Leaving the European Union

The United Kingdom left the European Union on 31 January 2020. We are now in a transition period until 31 December 2020. Throughout the transition period, all EU legislation relating to energy (Electricity and Gas) remains extant and is to be adhered to. This includes implementing TERRE later this year and making preparations for other European Changes.

How the UK energy market will interact with EU energy markets beyond 2020 will be determined by the relationship agreed during the transition period. The two options at either end of the scale are explained below. However, it is possible that there may be some in-between arrangements and we will not know how they may affect TERRE until such arrangements are announced.

If continuity is agreed

If the UK and EU agree that the UK will participate in EU energy markets in the same way as we are now, nothing will change. GB (and wider UK) market participants will be able to participate in TERRE in the same was as they will be able to in 2020.

If no agreement is reached

Should the post-Transition period relationship not be agreed before the end of the transition period, then our current understanding from earlier 2018 European Commission statement regarding a ‘no deal’ scenario is that GB (and wider UK) market participants will not be able to partake in TERRE from the end of the transition period.
1 February 2020

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