Flexibility aggregation is changing the Czech energy market. New SAF expert platform launched

The turbulent year just gone, which saw energy prices rise at a dizzying pace, exposed problems in the energy market. Czechia is paying the price in particular for the lack of legislation on flexibility aggregation and storage, an issue the European Commission has long criticised. Yet flexibility aggregation, together with energy storage, opens the way for the development of renewable energy sources. In response to the need to transition to a modern electricity market, the Association of Aggregators and Flexibility Providers (SAF) has been established. The expert platform, incorporated within the AKU-BAT CZ Energy Storage Association, will support the development of electricity aggregation and the use of flexibility.

Flexibility aggregation plays a key role in a modern, digital and decentralised energy sector, as required by European Union legislation not only for security but also for the efficiency of system management. “It contributes to the transformation of the energy sector and to the overall efficiency of energy use. However, legislation is lacking that would enable the widespread development of flexibility aggregation. We are responding by establishing the SAF association, which will coordinate technical matters and unified commercial and legislative positions for the aggregation sector,” said Petr Řeháček, director of SAF.

“When we look to the West, there is no doubt: Czechia is lagging behind in the use of energy flexibility aggregation. At Nano Energies, we have been trying to change this for several years, so we are pleased that SAF is coming to help us. Grid stabilisation through the regulation of the output of generation and consumption facilities is the future of transmission system management. It is a technology that is already helping the Czech grid, but its potential is far greater,” added Stanislav Chvála, CEO of Nano Energies.

As Europe begins to reduce its dependence on fossil fuels, renewables develop and old coal-fired units are phased out, Czech transmission system operator ČEPS is also starting to lack the balancing energy that these sources provide for system management.

“We welcome the establishment of SAF as our key partner in developing the use of flexibility from small-scale generation, storage and consumption, which will play an increasingly important role in managing the energy system and ensuring reliable and secure electricity supplies,” said Pavel Šolc, a member of the ČEPS board.

Legislative vacuum and threat of sanctions

European legislation requires Czechia to establish the concepts of flexibility aggregation and storage in law. However, compared with countries not only in Western Europe, Czechia is lagging behind, while also facing the threat of sanctions from the European Commission, known as infringement proceedings.

“This Easter Monday, we experienced a situation in which ČEPS had to disconnect solar power plants due to difficulties in managing the grid, and we were forced to switch off the cheapest and cleanest energy source instead of storing the energy produced from renewables or using it flexibly. This would not have had to happen if we had resolved flexibility aggregation together with storage,” said Jan Fousek, executive director of the AKU-BAT CZ Energy Storage Association and also chairman of the board of the Solar Association.

The Ministry of Industry and Trade (MPO) plans to respond to the market's calls through the so-called Transposition Amendment to the Energy Act, which is intended to introduce the missing elements needed for the stability of the electricity system.

“We had planned to address the amendment at the beginning of this year. Due to the current market situation and the extended discussion of Lex RES II, we expect it to be discussed during the summer and autumn,” added René Neděla, deputy director general of the MPO's energy section.

According to Petr Řeháček, the Transposition Amendment will be SAF's most pressing issue, and its members will therefore have an opportunity to actively participate in shaping the modern energy market.