19 August 2026
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Redispatch and Congestion Management, Future Proofing the European Power Market

Joint Research Council of the European Commission

Key findings

This report highlights the growing challenge of reducing grid congestion and redispatching costs for the European power grid. Tackling this problem will require changing investment and dispatching incentives to add a more locational signal. This can be achieved in various ways, but demand response and storage have a role to place. For instance, the report notes that if grid charges are further implemented in a time-varying way, they can create incentives for a grid-friendly operation of demand response and storage. Local flexibility markets and locational marginal price signals can also contribute to provide a part of the solution.  

Source : https://publications.jrc.ec.europa.eu/repository/handle/JRC137685 (2024)

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