In parallel to the certification processes, PSE continued the process of replacing scheduled demand side response units. This process is conducted in cooperation with the DSO and is intended to obtain information on physical demand side response units replacing scheduled demand side response unit and to enter these units into the register. Capacity suppliers may submit replacement requests no later than 3 months prior to the start of the delivery period for which the capacity agreement was concluded, or 3 months prior to the start of the last quarter of the delivery year specified in the certificate – this applies to units not covered by the capacity agreement. Ultimately, 17 scheduled demand side response units were replaced in 2021.
After the scheduled demand side response units replacement process was completed, PSE proceeded with demand side response testing for unconfirmed demand side response capacity market units. For unconfirmed demand side response units of the capacity market that do not receive a confirmed demand side response capacity test before the start of the delivery period specified in the capacity agreement, the capacity agreement is terminated. Demand side response tests are conducted at the request of the capacity supplier submitted through the registry. Capacity delivered at the level of at least 80% of the product of the net available capacity and the corrective availability factor is considered a positive test result. In 2021, 17 units received a positive result and changed their status to a confirmed demand side response unit.
On 26 August 2021, PSE conducted the second preliminary auction in the history of the power market via the Capacity Market Participant Portal. Foreign physical units located in countries where power system is directly connected to the NPS may participate in the preliminary auction. The Act allows units located in three areas to participate: in the synchronous profile zone (part of the transmission system of the Federal Republic of Germany, the transmission system of the Czech Republic and the transmission system of the Slovak Republic), in the Republic of Lithuania and in the Kingdom of Sweden. The preliminary auctions are carried out for each zone separately and the maximum volume of capacity obligations for a given zone is determined under the ordinance of the minister responsible for energy issued pursuant to Article 34 of the Act. In a preliminary auction, bids are accepted starting with those with the lowest price until the maximum volume for a given zone is reached. The bids selected in the preliminary auction are then replaced with capacity market units in the auction certification.
The preliminary auction in 2021 concerned the admission of foreign physical units located in the territory of the Kingdom of Sweden to participate in the main auction for the delivery year 2026. The auction ended with 39 bids accepted. Within 21 days from the end of the preliminary auction, PSE submitted a detailed report summarising the auction process to the Minister responsible for energy and the President of ERO.
The next capacity market process conducted in 2021 was certification for the main auction for the 2026 delivery year. Participation in the certification for the auction is not mandatory, but is necessary to set up the capacity market units and allow them to participate in the auction or in the secondary market for a given delivery period. As a result of successful verification of the applications, PSE issued certificates authorising the capacity market units to participate in the main auction and the secondary market. As part of the certification for the main auction for the 2026 delivery year, power suppliers submitted 221 certification applications, of which 157 were for generating capacity market units, including 39 foreign generating capacity market units, and 64 were for demand side response capacity market units. Following the certification, PSE submitted a detailed report summarising this certification to the minister competent for energy and the President of ERO for the auction.
As a result of the verification of the applications, PSE issued 219 certificates allowing the capacity market units to participate in the capacity auction or the secondary market. Tab. 4 includes detailed information on the number of certificates issued.