Explicit signals

In the energy sector, signals are explicit when they are direct, explicit instructions or orders given to market participants by electricity system operators (ESO, DSO) or market mechanisms. They are precise and require a specific response, unlike implicit signals, which leave participants free to interpret them.

Examples of explicit signals in the energy sector:

1. Instructions from the system operator. The transmission system operator (e.g. PSE in Poland) can issue a direct order to activate reserve capacity in order to maintain system stability. Emergency load reduction orders (so-called demand-side response).
2. Activation of power reserves. In the event of a sudden power shortage, the operator can activate a primary, secondary or tertiary reserve by instructing specific generating units to increase energy production.
3. Agreed demand reduction programmes (DSR – Demand Side Response). Large energy consumers can participate in flexibility programmes and receive direct instructions to reduce consumption at certain times.
4. Voltage and frequency regulation. In the event of a threat to grid stability, the operator can instruct power plants and large consumers to change their consumption or generation in order to maintain the correct voltage and frequency (e.g. 50 Hz).
5. Grid control systems (SCADA, EMS). Automatic control systems (e.g. SCADA) send explicit signals to specific devices in the grid (e.g. power plants, energy storage facilities), forcing certain actions.

In summary, explicit signals are specific instructions that control the operation of the energy system and that market participants must follow.