TSO-TSO-DSO Cooperation: How to align System Operation in Future Power Markets?

With increasing variability of demand and supply, transmission system operators (TSOs) across Europe adapt their internal processes and operational approaches. These processes comprise different interfaces with other market participants (e.g. via balancing markets, reserve procurement or NTC calculation). However, currently internal TSO approaches and market interfaces differ widely among TSOs in Europe. Different methods of reserve procurement, balancing rules, gate closure and algorithms for market clearing prevail. The Target Model aims at improving this situation and therefore is concerned with the definition and alignment of market protocols for these different interfaces. However, currently the focus lies on information exchange and to some extent a standardization of balancing energy products. Placing the core of TSO operation itself, also for system-services and internal market clearing processes, in the center of the debate, could lead to additional benefits both with respect to cross-border network operation as well as cross-border energy trade.