Energinet will in general not offer upward regulation in Western Denmark (DK1) for countertrade towards TenneT Germany from 3 July 2020 to 31 August 2020. Energinet will still offer downward regulation in DK1 for countertrade. Energinet will reassess the situation after the Danish holiday period, i.e. around 1 August, and again at the end of August. It is important for Energinet to underline that in cases of failures and critical instances, Energinet will assist TenneT with upward regulation at our best effort.

Background
The reason is that generation adequacy, i.e. ensuring sufficient generation to cover consumption, will be much worsened by Energinet’s obligations to ensure a level of upward regulation for countertrade towards TenneT Germany. Under the Joint Declaration, Energinet is obliged to guarantee up to 1,100 MW of upward and downward regulation every hour. 

Energinet is facing a period of: 

• Many HVDC connection outages due to faults
• Many planned outages of thermal power plants
• Increased demand for upward regulation in DK1 and DK2 due to many planned outages in Sweden
• Several limitations in the internal German electricity grid announced by TenneT Germany. In situations with import from Germany to DK1 an exceptionally high need for upward regulation (increasing production) in DK1 may arise given the agreements on minimum capacities on the DK1-Germany border. 

Due to the above points and if no remedial actions are implemented, Energinet expects many situations where there will not be sufficient upward regulation to mitigate an outage of the largest unit (N-1). Particularly countertrade due to the minimum capacities create problems, because countertrade 'uses' the manual reserves procured to cover N-1. 

Not acting and accepting the risk is unacceptable. Therefore, Energinet will temporarily limit the possibility of upward regulation as a result of minimum capacities over the summer of 2020 in order to ensure a very high level of security of electricity supply. This is based on the principle of proportionality that the risk of consumer outages is not proportional with the agreement to guarantee minimum capacities on the DK1-Germany border. 

TenneT has been informed that as of 3 July, they must alter their capacity calculation to no longer reflect the possibility of upward regulation in the Danish bidding zones.

This shall not affect the minimum capacities for the day-ahead market, which would result in the need for downward regulation in the Danish bidding zones. 

It is important for Energinet to underline, that in cases of failures and critical instances, Energinet will assist TenneT with upward regulation at our best effort.