What is a transmission management agreement?

Transmission management in the power system is becoming more demanding, and the old methods are no longer enough. The transmission management agreement is a new tool for this purpose, says Tuomas Mattila, Expert at Fingrid.
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1. What is a transmission management agreement?

A bilateral agreement in which Fingrid and a seller agree on flexible electricity production or consumption in response to transmission management needs. The agreement sets out the terms of flexibility in advance, so it is not necessary to negotiate them once a situation arises.

A transmission management agreement is suitable for flexible electricity production or consumption capacity of at least 10 megawatts that is not technically compatible with the balancing market.

2. Who needs a transmission management agreement, and what does the agreement contain?

Fingrid needs agreements to manage transmissions under especially difficult operating conditions and ensure system security. They represent an opportunity for sellers to offer flexible electricity production and consumption capacity that is not technically compatible with the balancing market.

A transmission management agreement specifies the flexibility payments and certain prerequisites, such as the activation time and the necessary information exchange. The terms are the same for everyone entering a transmission management agreement, but certain information, such as the activation time and remuneration for specific units, are agreed upon separately in an appendix.

Initially, the agreement includes the simplest possible arrangement, which is already in use for winter 2024–2025.

3. Who is best suited to a transmission management agreement?

Transmission management agreements can be recommended for production and consumption units that cannot participate in the balancing market. Fingrid is also considering new ways to meet transmission management needs.

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