TSO proposals on capacity balancing submitted

20.12.2019

In December 2017, the European Commission Regulation establishing a guideline for electricity balancing came into force. The European transmission system operators (TSOs) were given two years to prepare two proposals aimed at promoting market integration through the procurement and use of standard products for capacity balancing in an efficient, economic and market-based manner. Considering feedback from stakeholders, public consultations and workshops, these two proposals have now been submitted by the European Network of Transmission System Operators for Electricity (ENTSO-E) to the Agency for the Cooperation of Energy Regulators (ACER).

The “Proposal for a methodology for co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserve” specifies how cross-zonal capacity should be allocated in a single optimisation process to bids for energy exchange as well as for the exchange of balancing energy or the sharing of reserves. The process suggested involves contracting on a day-ahead basis and meets the requirements of the “Clean Energy for All Europeans Package”.

The “Proposal for a list of standard products for balancing capacity for frequency restoration reserves and replacement reserves” details the minimum harmonisation criteria for the exchange of balancing capacity set by all TSOs. To respect the specific conditions of each region, additional characteristics may be defined and harmonised by two or more TSOs deciding to jointly provide balancing capacity.

ENTSO-E stresses that substantial work still needs to be done on the implementation and application of these proposals. Close interaction between neighbouring TSOs is essential for the establishment of balancing capacity cooperation.

ENTSO-E has submitted two TSO proposals on capacity balancing to ACER (picture showing Ljubljana, capital of Slovenia and home of ACER)