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.
Articles of Interest
‘Getting Ready for TERRE’ webinar
ELEXON and National Grid ESO jointly hosted the ‘Getting Ready for TERRE’ webinar on 7 and 16 April 2020. 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.
Joint Test Strategy published
NGESO and ELEXON have now published the joint TERRE test strategy. It explains our approach to TERRE testing and how industry participants can get involve
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 have joined. The remaining countries will be joining in waves until 2021/22
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