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IPGS ENERGYPOWER & GAS SOLUTIONS
Electricity Market··3 min read

Energy dispatching

How Terna balances energy supply and demand in real-time on the national electricity grid.


Dispatching is the real-time management of energy flows on the electricity grid, ensuring that at every moment production exactly equals consumption. In Italy, it is managed by Terna, the national transmission grid operator.

How balancing works

Production Plants + RES TERNA Dispatching 50 Hz constant Second by second Consumption Business + users MSD Flexibility services Reserves Primary / Secondary / Tertiary Real-time balancing system

Why it is necessary

Electricity cannot be stored in large quantities on the grid. If production exceeds consumption, grid frequency rises; if lower, it drops. Deviations from the nominal frequency of 50 Hz can cause equipment damage and blackouts. Dispatching maintains this balance second by second.

50 Hz
Nominal frequency
74,000 km
Transmission grid
24/7
Continuous monitoring

The Dispatching Services Market (MSD)

To balance the grid, Terna purchases flexibility services on the MSD: primary, secondary, and tertiary reserves. Producers who can rapidly increase or decrease production are compensated for this availability.

Impact on business costs: Dispatching costs are passed on to end consumers as a bill component (uplift). The imbalance between forecasts and actual consumption generates additional costs. Accurate consumption forecasting and the use of demand response tools can significantly reduce this cost item.

Informational content by IPGS Energy. Information is reviewed as of the stated update date and does not replace a contractual, tax or regulatory assessment specific to an individual business.

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