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Network stabilisation with LiFA

How we ensure the supply of gas, also in the case of maximum loads.

As of 1 January 2018 terranets bw introduced a new product to stabilise the gas supply in Baden-Württemberg in the case of maximum loads. LiFA stands for load flow commitments in the form of shutdown contracts (German: "Lastflusszusagen in Form von Abschaltverträgen") and is a temporary product that is directed towards distribution system operators in our network area. To stabilise the grid, LiFA uses available peak load instruments and shutdown potentials of RLM customers.

LiFA serves to bridge any possible capacity gaps – until development measures in the gas transmission network that are identified in the Germany-wide gas Network Development Plans take effect.

All distribution system operators (DSOs) directly downstream of terranets bw can take part in the call for tender for load flow commitments. The DSO directly downstream of terranets bw bundles the potential of the customers that can be shut down in its grid and, if necessary, in the next grid downstream. 
Aligning with stipulations set out by the Federal Network Agency on the costs for load flow commitments as volatile costs in the sense of section 11 paragraph 5 ARegV ("KOLA"), the minimum batch size is 10 MW per batch.

The bundling of offers of several DSOs that are directly downstream of terranets bw is possible. Here you will find detailed information on the LiFA product:

Product sheet LiFA (PDF, 493 KB)

Background to introducing LiFA

The design of this new, temporary product is based on the special situation in Baden-Württemberg, which results from a complex structure due to its integration into upstream and European networks and a strongly increasing demand for shipping capacities in the distribution grids.

The demand for capacities in the supply area of terranets bw has been characterised by a continually increasing demand in the downstream grids since 2010. Shipping demand reported to us by distribution system operators within the scope of internal orders in the terranets bw network increased in 2017 and 2018 by approx. 4 % respectively compared to the previous year.

In addition to implementing necessary network development measures and the contracting of load flow commitments at entry points into the terranets bw network, LiFA should make a significant contribution to alleviating this situation as a market-related interim solution.

This means that the existing potential of available peak load instruments and shutdown potentials of RLM customers can be used in the whole terranets bw network area to ensure security of supply in Baden-Württemberg in the event of a gas shortage.

LiFA therefore follows on from the expired shutdown contracts that the state regulatory authority of Baden-Württemberg had approved to date as an instrument to even out demand peaks. With LiFA, DSOs that do not fall under the regulatory regime of Baden-Württemberg´s state regulator but under that of the Federal Network Agency are also entitled to take part in the tendering procedure.

LiFA process

terranets bw publishes a call for tender for LiFA capacities with a minimum batch size of 10 MW  for the duration of one year respectively.

Call for tender text LiFA (PDF, 493 KB)

Tenders may be submitted as follows:

  • As directly downstream DSO of terranets bw: Tender to be submitted directly to terranets bw within the scope of the call for tender.
  • As DSO not directly downstream of terranets bw: Tender to be submitted via the upstream DSO that is directly downstream of terranets bw that is participating in the tendering process.
  • As "shutdown customer": Tender to be submitted to the responsible DSO that is itself participating in the tendering process or via the DSO upstream of the latter.

As soon as the contract has been awarded, terranets bw and the selected DSOs conclude bilateral LiFA contracts.

It is prohibited to market shutdown potentials twice (e. g. in NCG auctions for balancing energy such as LTO and DSO). The bundling ("pooling") of several shutdown contracts into one batch is possible so that shutdown potentials of less than 10 WM may be taken into consideration.

Remuneration is initially paid by terranets bw to the DSO whose tender was contracted. Then further settlement takes place between DSO and shutdown customer. The costs resulting from LiFA are distributed and passed on via terranets bw´s grid charges.

terranets bw is working hard to improve the current capacity situation. Alongside LiFA, load flow commitments at entry points into our network are also being tendered in order to close the capacity gap between entry and exit capacities. Insofar as interruptible capacity shares can be converted into temporary firm capacities by means of these load flow commitments, the resulting costs are passed on to all network customers in the terranets bw network. The correspondingly generated temporary firm order capacities are billed at the regular fee.

The aim of LiFA contracting is to enable a demand reduction in high-load situations to avoid interrupting interruptible allocated capacities as far as possible.

Process for invoking LiFA

If required, terranets bw announces the LiFA situation with directly downstream DSOs that have concluded LiFA contracts. In turn, the respecitive DSOs are responsible for shutting down the "shut-down customers". There is no communication between terranets bw  and these customers.

When terranets bw invokes this situation, the permissible capacity supply at the respective regional cluster is reduced by the same amount as this load flow commitment. The interruption of capacities contracted under LiFA occurs parallel to the interruption of interruptible internal order capacities.

The contractual penalty provision determined in the LiFA contracts are applicable should the DSO exceed the then still permissible capacity. The provision is based on that of the internal order. Publication of the price list including the amount of the contractual penalty appears on 03.06.2022. Please note: The prices published on 03.06.2022 are still excluding cost distribution allocations and metering fees. These parts will be published at a later time.

The first quarter as well as November and December are defined as possible interruption periods for 2023. In these periods LiFA can be invoked for a maximum duration of 240 hours per calendar year and contract and shall take place by 12:00 h of the previous day for the subsequent day from 6:00 h for LiFA with demand prices. For LiFA with energy rate components it may be involked with a notice period of two hours.

The process of invoking LiFA is fundamentally based on the forms used within the scope of the "Guideline for Gas Crisis Prevention". This guideline was adapted to the requirements of LiFA  and is available as an annex to the call for tender documents:

Annex 2 (PDF, 493 KB)

Annex 3 (PDF, 493 KB)

Load flow commitments are invoked via the communication channel agreed upon in accordance to section 6.7 of the "Guideline for Gas Crisis Prevention" set out in the Cooperation Agreement.

Time schedule for 2022

The time schedule for the year 2022 is as follows:

15 May 2022

Announcement of call for tender

15 June 2022

Call for tender process begins

28 July 2022

Deadline for submitting offers via VNB

15 August 2022

Deadline for terranets bw to accept offers

Call for tender

All information required for participating in the tendering process are available here as soon as the tendering process has started:

To the call for tender page

The results of the call for tender are available here as soon as the tendering procedure ends:

To the results

Questions and answers

  • LiFA product sheet

    LiFA product sheet

    To give you a quick overview of the LiFA product, we have summarised the most important aspects in the document below:

    Product sheet LiFA

  • LiFA call for tender text

    LiFA call for tender text

    All information required for participating in the tendering procedure is available as soon as the tendering process has started in our section Calls for tender.

    The results of the tendering process are available in the section market information under "LFC calls for tender" (German: "LFZ-Ausschreibungen") as soon as the tendering process has ended.

  • Process to invoke LiFA

    Process to invoke LiFA

    The process for invoking LiFA is fundamentally based on the forms used within the scope of the "Guideline for Gas Crisis Prevention". This was adapted to the requirements of LiFA and is available as Annex 2 and Annex 3 in the call for tender documents. Invoking load flow commitments takes place via the communication channel agreed uponn in accordance with section 6.7 of the "Guideline for Gas Crisis Prevention" set out in the Cooperation Agreement.

  • Contractual agreements

    Contractual agreements

    Contractual agreements regarding LiFA are concluded between:

    Hereafter you can find non-binding sample contracts between the direct DSO and the network user and between the direct DSO and their downstream network operator.

Downloads

Here you will find all documents pertaining to LiFA:

  • LiFA product sheet

    LiFA product sheet

    To give you a quick overview of the LiFA product, we have summarised the most important aspects in the document below:

    Product sheet LiFA

  • LiFA call for tender text

    LiFA call for tender text

    All information required for participating in the tendering procedure is available as soon as the tendering process has started in our section Calls for tender.

    The results of the tendering process are available in the section market information under "LFC calls for tender" (German: "LFZ-Ausschreibungen") as soon as the tendering process has ended.

  • Process to invoke LiFA

    Process to invoke LiFA

    The process for invoking LiFA is fundamentally based on the forms used within the scope of the "Guideline for Gas Crisis Prevention". This was adapted to the requirements of LiFA and is available as Annex 2 and Annex 3 in the call for tender documents. Invoking load flow commitments takes place via the communication channel agreed uponn in accordance with section 6.7 of the "Guideline for Gas Crisis Prevention" set out in the Cooperation Agreement.

  • Contractual agreements

    Contractual agreements

    Contractual agreements regarding LiFA are concluded between:

    Hereafter you can find non-binding sample contracts between the direct DSO and the network user and between the direct DSO and their downstream network operator.

Please contact us

We are happy to help you.

Thomas Pyka

Thomas Pyka

Head of Regulation and Network Management

lfz@terranets-bw.de
+49 711 7812 1359

Contact now

Johannes Greiner

Johannes Greiner

Regulation and Network Management

lfz@terranets-bw.de
+49 711 7812 1446

Contact now