Germany has launched a market-based mechanism for procuring instantaneous reserve, allowing inverter-based assets and battery energy storage systems (BESS) to participate for the first time, creating new revenue opportunities while raising questions over long-term profitability and regulatory risk.


Image: Fluence, Lichtblick

From ESS News

Germany has procured instantaneous reserve through a market-based mechanism since Jan. 22, marking a structural shift in how the system service is delivered. Instantaneous reserve stabilizes grid frequency in the first milliseconds up to 30 seconds following a disturbance, before primary control power takes effect.

Until Jan. 22, this function was provided by gas- and coal-fired power plants, which could supply it inherently and at no cost due to their rotating masses. As coal plants are phased out and gas plants increasingly shut down at least temporarily, other market participants will need to assume this role.

Instead of inherent physical provision, the new model relies on market-based procurement, allowing inverter-based assets to participate.

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