Electricity balancing is crucial to ensure security of supply and has an important bearing on costs for consumers. Compared to other electricity market timeframes, balancing markets represent only 2-3% of the total turnover volume of wholesale markets; nevertheless, in a recent
report commissioned by the European Commission, the potential gains are shown for balancing resources to be effectively shared between countries, enhancing security of supply and reducing costs, whilst using resources more efficiently. This represents a strong rationale for developing cross border balancing markets.
Moreover, a cross border balancing market will help to counteract the effects of intermittent generation and allow the integration of more renewable energy sources.
While the integration of the European energy markets follows rather clear target models – as for capacity allocation rules set out in the binding guidelines on Capacity Allocation and Congestion Management (CACM) and the Network Code on Forward Capacity Allocation (NC FCA) – different kinds of balancing services have not yet been detailed. The
ENTSO-E Survey on Ancillary Services Procurement and Balancing Market design, published in 2012, shows the diversity in current balancing markets and highlights the challenge for harmonisation.
The future Network Code on Electricity Balancing (NC EB) will lay out the processes for developing market based co-operation and implementing the steps towards regional and European integration which will, in turn, allow for the achievement of efficiency gains while also maintaining operational security.
ENTSO-E fully supports the proposed European Balancing Market (EBM) and has proposed several cross border pilot projects with the purpose of:
Testing the feasibility of the European (target) model and intermediate steps established in the ACER Framework Guidelines on Electricity Balancing (FG EB);
Evaluating the associated implementation impact;
Reporting on the experience gained.
What is the objective?
The detailed objectives of the pilot projects are:
To gain bottom-up experience for the implementation of the different steps towards a EBM;
To create awareness of the EBM, provide information to stakeholders and receive constructive feedback;
To gain experience of product definitions and pricing mechanisms (to support proposals to be sent to ACER one year after entry into force of the NC EB);
To identify and overcome barriers during actual implementation related to regulatory issues, IT developments (specification / design of the common cross border balancing platform, analysis of IT changes at national level), cost recognition, interaction of the balancing market with future European intraday energy market (updating of balancing bids, interaction with the cross border capacity management modules);
To analyse governance issues - roles and responsibilities regarding cross border platform management, cross border interconnection capacity management, settlement between TSOs, etc.;
To provide an insight into which aspects are to be harmonised and to what degree;
To provide an insight into social welfare definition and monitoring in order to gain experience about net benefits (cost/benefit reports) at different levels (national, regional etc.);
To test the feasibility of the different milestones in the draft Network Code on Electricity Balancing and to test the impact of the long term target. The scope of the feasibility analysis includes issues such as regulatory changes, analysis of changes made to existing processes, and impact on the design of existing markets as well as any operational impacts.
An overview of the on-going pilot projects
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The following reports include the main information regarding each pilot project and include a description of the implementation of targets relevant to the Network code on Electricity Balancing (NC EB). Alongside these updates on additional achievements are also listed.
Pilot Project - Contacts
A list of contacts from TSOs/ENTSO-E and NRAs/ACER for Pilot Projects is available.
Download the list of pilot project contacts
Cross Border Balancing Pilot Projects Stakeholder Meetings:
Project-specific stakeholder events:
|Project & Event||Related documents|
Following the fruitful consultation phase and for the sake of transparency the TERRE TSOs share with you all the feedbacks received and the TSOs assessments.
This documents will be discussed during the next stakeholder workshop scheduled on the 04th of July in Elexon Ltd, 350 Euston Road, London NW1 3AW
|Project TERRE Regional stakeholder event, 11 May 2015, Brussels (Project 4)
The TERRE project is currently the leading pilot project for Replacement Reserves and aims to explore the feasibility of concepts contained in the Electricity Balancing Network Code. The event attracted an audience of over 50 stakeholders, consisting of market participants, National Regulatory Authorities and interested parties from across Europe. There was a good level of engagement and audience participation throughout the day, with positive feedback from stakeholders. TSOs will look to organise subsequent stakeholder events as the project progresses through its design phase.
SPOC Contact List
Pilot Project 7
The first workshop on this pilot project took place on 1 February 2013 and was attended by representatives from market parties, regulators and authorities from the Netherlands and Belgium.
On June 13th of 2014 TenneT and Elia organized a second stakeholder workshop to present and discuss the intermediate findings of Step 2.
|Pilot Project 2 - FCR Cooperation||