The situation has occurred again. Red Eléctrica has reported that on Wednesday night, specifically at 22:18, the system operator proceeded to activate the active demand response service, as provided in PO. 7.5. The activation lasted until 24:00.
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That is, it made use of the tool called Active Demand Response Service (SRAD) which allows large consumers, who voluntarily participate in this remunerated service, to be asked to stop their activity to stabilize energy supply and demand in the system at a time of deviation from wind generation forecasts.
The company assures that the continuity of supply was not compromised at any time, “the objective of this activation being to guarantee the reserve levels established in the operating procedures in response to a specific situation: an unforeseen reduction in wind production.”
One more management tool
Last night was the third time this year that the system operator has used this mechanism. The previous one was last Wednesday at 21:43 at night. The reason was the same as the one that triggered the measure last night: wind generation below what was expected, although that day the disconnection lasted only a few minutes. Previously, REE had activated the SRAD on January 28 when storm Kristine knocked out Portugal’s electricity grid and the Spanish system had to assist the neighboring country.
The peninsular electricity system has 1,775 MW of active demand response capacity for the second half of 2026, in order to maintain the balance between generation and demand, and guarantee the appropriate level of system reserve in case of need, assigned in the auction held on May 28, 2026. The application period is from July 1 to December 31. On this occasion, a total of 943 MW of the total available was used.
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The 1,775 MW assigned for the active demand response service (SRAD) represent 76% of what is required in the specifications of this call (2,339 MW). Most of the service providers, with a capacity equal to or greater than 1 MW, who have requested their participation, either individually or aggregated, have submitted their offer through a marketer operating in the electricity market.
Industry will receive 42.62 for each MW disconnected
The successful bidders will be remunerated with a marginal price of 42.62 euros for each MW assigned per hour for their availability to reduce their consumption power during the assigned hours. Furthermore, each activation of the service will be remunerated at the price of the tertiary regulation corresponding to the moment of its provision.
At the proposal of the National Commission for Markets and Competition, a modification to operating procedure 7.5 was published in the BOE on May 15 to optimize the volume of assigned power and the marginal price. This modification has already been incorporated into the algorithm and has been taken into account for the assignment of the service in this auction.
REE published a note this Thursday explaining that the use of this measure is part of a new strategy by the market operator to deploy measures that “reduce the use and cost of technical restrictions that since the blackout have involved a massive use of combined cycles, which has driven up the price consumers pay on their electricity bills.”
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