The Commission Regulation (EU) establishing a guideline on electricity balancing (“EB Regulation”) required all TSOs to develop two proposals by two years after the EB Regulation entered into force (i.e. December 2019). These two proposals aim to foster market integration through the procurement and use of standard products for balancing capacity in an efficient, economic and market-based manner.

After considering the feedback received from stakeholders in dedicated workshops and public consultations, these two proposals are now submitted to the Agency for the Cooperation of Energy Regulators (ACER) for approval.

The TSOs’ proposal for a list of standard products for balancing capacity for frequency restoration reserves and replacement reserves, pursuant to Article 25(2) of EB Regulation, describes the minimum set of harmonised characteristics defined by all TSOs for the exchange of balancing capacity. To consider the specificities of each region, additional characteristics may be defined and harmonised by two or more TSOs deciding to jointly procure balancing capacity.

The proposal for a co-optimised allocation of cross-zonal capacity (‘CZC’) for the exchange of balancing capacity or sharing of reserves, pursuant to Article 40(1) of the EB Regulation, describes how CZC shall be allocated to bids for the exchange of energy and bids for the exchange of balancing capacity or sharing of reserves in a single optimisation process. This process sets a contracting performed on a day-ahead basis and is in line with the requirements set by the Clean Energy Package’s Electricity Regulation.

Important work remains regarding the implementation and application of these proposals. Cooperation between neighbouring TSOs for the establishment of balancing capacity cooperations will be needed. Besides, the implementation of the co-optimised CZC allocation process will require the collaboration of TSOs and all the market parties involved in EUPHEMIA, to assess the impact on the already successful single day-ahead coupling (SDAC) and possible changes needed.

For more information, please visit our EB Regulation website or download the E Codes App.

All TSOs proposals

Both proposals are submitted together with explanatory documents and responses to all stakeholders’ comments received in the public consultations.