The scheme will support security of electricity supply for a period of 5 years starting in October 2026. It is an extension and update of the existing network reserve that was approved in 2021 and will end in 2026. Among various technical changes, the new scheme includes monthly contracts and other updates designed to increase participation of smaller resources, in particular electricity consumers that can provide demand response by reducing energy use.

The scheme will support electricity capacity that remains in reserve outside the market and is ready to be activated by the system operators whenever there is insufficient transmission capacity to match generation and demand (‘transmission congestion').

Where there is transmission congestion, system operators turn off capacity in oversupplied parts of the bidding zone, and turn on capacity in parts of the bidding zone where there is a deficit.