The Replacement Reserve (RR) is one type of power reserves used by Transmission System Operators (TSOs) across Europe in order to ensure real-time supply/demand balance. It is generally provided by generators that require a long start-up time (typically thirty minutes) but may also be provided by demand response suppliers.
Trans European Replacement Reserves Exchange (TERRE) is the pilot European implementation project for exchanging replacement reserves in line with the Guideline on Electricity Balancing. The aim of TERRE is to build the RR Platform and set up the European RR balancing energy market in order to create a harmonized playing field for the Market Participants.
The consortium is in charge of providing the market clearing engine to the RR Platform. The optimization engine simultaneously clears upward and downward balancing offers from Balance Service Providers with balancing needs submitted by participating TSOs. It is designed to run under 3 minutes with up to 500 000 offers over a region managed by 50 TSOs, and accommodates complex offers such as block bids and exclusive bids.
Upon the Go-Live date, the TERRE market will be operated on an hourly basis all year long.