ELEXON response on Project TERRE derogation decision

Following Ofgem’s decision to grant National Grid ESO a derogation from participating in Project TERRE (Trans European Replacement Reserves Exchange) until 30 June 2020 (latest), ELEXON is working closely to align its plans for TERRE industry testing with National Grid ESO.

It is currently anticipated that TERRE testing will start in Q1 2020, so that ELEXON can deliver its BSC Modification P344 ‘Project TERRE’ commitments by 30 June 2020.

Ofgem’s decision on the derogation request

GB parties were previously expecting to be able to participate in Project TERRE from January 2020. However, Ofgem’s decision to grant the request (published on 28 November 2019) 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.

In accordance with the decision, National Grid ESO must start using the TERRE platform by whichever of these dates comes soonest: 

  • 30 June 2020
  • by the time the French transmission system operator, RTE, starts using the TERRE platform
  • by the time RTE makes its cross-zonal capacity available for exchange

The decision also requests that National Grid ESO ensures that Wider Access to the Balancing Mechanism is implemented in December 2019.

ELEXON’s commitment to deliver Wider Access 

ELEXON is working closely with National Grid ESO to deliver its P344 Wider Access commitments on 11 December 2019. This deployment will deliver benefits to GB consumers and new participants wishing to trade under the BSC. 



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