In the energy market, the term dispatch refers to the control and distribution of electricity generation in order to cover demand in the electricity grid at all times. In an electricity grid, production and consumption must be in balance at all times in order to ensure grid stability and security of supply. The dispatch process decides which power plants generate electricity at which time in order to optimally cover demand.

In Austria, the transmission system operator Austrian Power Grid (APG) plays the central role in dispatch. APG monitors the electricity grid in real time and ensures that energy generation is adapted to current demand. This process is particularly important in an increasingly decentralised energy system, which is characterised by a growing proportion of renewable energies such as wind and solar power.

A key aim of dispatching is to operate economically while avoiding grid bottlenecks. While large, centralised power plants used to take over the majority of electricity generation, the increasing feed-in from renewable energies such as hydropower, wind and photovoltaics is now creating new challenges in dispatching. These renewable energies are often dependent on the weather and cannot supply electricity continuously. As a result, conventional power plants or other flexible solutions such as battery storage or pumped storage power plants have to step in to compensate for bottlenecks.

In Europe and especially in Austria, dispatch is increasingly being supported by the integration of smart grids and digitalisation. These technologies enable even more precise control of electricity generation and distribution in real time. Dispatching often no longer takes place only at a national level, but also across borders as part of the European electricity market. Austria in particular, due to its geographical location as an electricity hub, plays an important role in European dispatch. Electricity trading with neighbouring countries, for example via the EPEX SPOT electricity exchange, allows for flexible control and load distribution that adapts to the respective market situation and demand.

For energy producers in Austria, both conventional and renewable, dispatch means that they have to place their plants on the market and ramp up or down their generation on demand. This flexibility is particularly in demand when unforeseen fluctuations occur in the electricity grid, for example due to sudden changes in the weather that affect the production of wind and solar power plants.

In addition to renewable energies, pumped storage power plants play an important role in dispatching in Austria. These can store energy when there is a surplus of electricity by pumping water into high-altitude reservoirs. When required, this energy can then be retrieved and fed back into the grid. Austria has numerous pumped storage power plants that contribute to grid stability.

Dispatch also has an economic component. As the price of electricity fluctuates greatly, dispatch determines which power plants with the lowest costs and highest efficiency are utilised. Electricity producers that can react flexibly to dispatch requirements often have a competitive advantage, as they can realise higher revenues in times of high demand or grid bottlenecks.

In the future of the energy market, dispatch is expected to become even more automated and digitalised. Technologies such as artificial intelligence (AI) and machine learning could play a central role in the future in order to control the optimal use of electricity generation capacities even more precisely. The integration of green hydrogen generation and storage systems will also make dispatch increasingly complex, but also more efficient.

Overall, dispatch is a key element for security of supply and grid stability in Austria and Europe. With the increasing share of renewable energies and the further liberalisation of the electricity market, it will play an even more important role in the future.