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Baltic TSOs launch a common Baltic balancing market from 2018

With the approval of the Baltic Energy Market Interconnection Plan (BEMIP) in 2009, the Baltic countries agreed to work jointly towards opening, liberalizing and harmonizing electricity market as well as creation of a common balancing market and harmonized imbalance settlement and imbalance pricing. ENTSO-E, following the requirements set in Regulation 714/2009 concerning common rules for the internal market in electricity, has developed the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing which, foresees different requirements and activities supporting the objective to develop a more efficient regional cooperation which shall result in a single integrated European electricity balancing market. 

As the first step towards this ambitious goal, the Baltic TSOs (Elering AS, AS “Augstsprieguma tīkls” and LITGRID AB), based on previously made studies and continuous work, have agreed to cooperate in coordinated balancing area and will launch a common Baltic balancing market starting from the 1st January 2018. The objective of the common Baltic balancing market is to establish the same rules and principles for all balancing related activities while stimulating competition and, at the same time, paving the way towards equal treatment of each market participant regardless of the country it operates or resides in, therefore facilitating the overall cost-efficiency and leading to higher consumer welfare. 

In order to achieve the level playing field for the participants of the Baltic balancing market, and to fulfil the requirements of the guideline on electricity balancing, the Baltic TSOs have agreed on harmonized Baltic balancing market rules for balance service providers and imbalance settlement for balance responsible parties. The detailed information regarding the Baltic balancing market framework and imbalance settlement principles can be found in the attached documents, which are public annexes of Baltic TSOs’ Agreement on the operation and settlement of the Baltic coordinated balancing area: 

• “Baltic balancing market rules”;

• “Baltic CoBA imbalance settlement rules”;

• “Used definitions and abbreviations”. 

The Baltic TSOs would like to inform that Baltic national regulatory authorities have expressed support to the implementation of the common Baltic balancing market. However due to relevant upcoming amendments in national laws and regulations, and different public consultation processes in each Baltic State, the attached documents are subject of the final approval and might be adjusted during December 2017 as a result of the national implementation processes. 

In addition to the terms defined throughout the Agreement, the following definitions shall have the following meanings with regard to this Agreement:

Already allocated capacity (AAC) - the total amount of allocated transmission rights;

AC imbalance flow - the difference between the AC scheduled and AC actual measured flow exchange of power system (includes imbalance netting volume);

Accounting period - the time period for which the settlement is made. The accounting period is one calendar month in EET;

Allocated volume - an energy volume physically injected or withdrawn from the system and attributed to a balance responsible party for the calculation of the imbalance of that balance responsible party;

Area control error (ACE) - the difference between measured physical flow and final external schedules of coordinated balancing area during imbalance settlement period in MWh-s;

Balance responsible party (BRP) - market participant or its chosen representative responsible for its imbalances;

Balancing - all actions and processes, on all timelines, through which TSOs ensure, in a continuous way, the maintenance of system frequency within a predefined stability range, and compliance with the amount of reserves needed with respect to the required quality;

Balancing energy - energy used by TSOs to perform balancing and provided by a balancing service provider;

Balancing energy gate closure time (GCT) - the point in time when submission or update of a balancing energy bid for a standard product on a common merit order list is no longer permitted;

Balancing market - the entirety of institutional, commercial and operational arrangements that establish market-based management of balancing;

Balancing services - balancing energy or balancing capacity, or both;

Balancing service provider (BSP) - a market participant with reserve-providing units or reserve-providing groups able to provide balancing services to TSOs;

Baltic ACE - the Baltic’s not netted imbalance, which is settled through the trade of imbalance energy with the open balance provider of the Baltic power system;

Baltic coordinated balancing area (Baltic CoBA) - a cooperation between TSOs of Estonia, Latvia and Lithuania with respect to the exchange of balancing services, sharing of reserves, operating the imbalance netting process and imbalance settlement;

Baltic CoBA imbalance position - the direction of all Baltic BRPs’ imbalances in a given ISP;

Baltic not netted imbalance - the Baltic’s not netted imbalance, which is settled through the trade of imbalance energy with the open balance provider of the Baltic system;

Baltic power system - the power systems of Estonia, Latvia and Lithuania;

Baltic TSOs - the transmission system operators for electricity of Estonia, Latvia and Lithuania;

Common merit order list (CMOL) - a list of balancing energy bids sorted in order of their bid prices, used for the activation of balancing energy bids within a coordinated balancing area;

Connecting TSO - the TSO that operates the scheduling area in which balancing service providers and balance responsible parties shall be compliant with the terms and conditions related to balancing;

Cross-border interconnection - a physical transmission link (e.g. tie-lines) which connects two power systems;

Cross-zonal capacity within the balancing timeframe (CZCBT) - the capability of the interconnected power systems to accommodate energy exchange for balancing purposes among Estonian, Latvian, Lithuanian power systems and from Finnish, Swedish, Polish, Russian and Belarusian power systems as well as the capability of energy exchange for balancing purposes from Estonian, Latvian, Lithuanian power systems to Finnish, Swedish, Polish, Russian and Belarusian power systems. Cross-zonal capacity within the balancing timeframe has to always include the direction whether it is from or to the relevant power system, i.e. up activation or down activation;

Deactivation period - the time period for ramping, from full delivery or withdrawal back to a set point;

Delivery period - the time period of delivery during which the balancing service provider delivers the full requested change of power in-feed to or the full requested change of withdrawals to the system;

Divisibility - the possibility for the TSO to use only part of the balancing energy bids offered by the balancing service provider, either in terms of power activation or time duration;

Downward activation - balancing energy bid activation in order to reduce generation or increase consumption;

Emergency reserve (ER) mFRR - the specific upward mFRR that is maintained by TSOs in accordance with multi party agreements and national requirements;

Exchange of balancing energy - the activation of balancing energy bids for the delivery of balancing energy to a TSO in a different scheduling area than the one in which the activated balancing service provider is connected;

Full activation time - the time period between the activation request by a TSO and the corresponding full activation of the concerned product;

Imbalance - an energy volume calculated for a balance responsible party and representing the difference between the allocated volume attributed to that balance responsible party and the final position of that balance responsible party, including any imbalance adjustment applied to that balance responsible party, within a given imbalance settlement period;

Imbalance adjustment - an energy volume representing the balancing energy from a balancing service provider and applied by the connecting TSO for an imbalance settlement period to the concerned balance responsible parties, for the calculation of the imbalance of these balance responsible parties;

Imbalance price - the price, positive, zero, or negative, in each imbalance settlement period for an imbalance in each direction;

Imbalance settlement - a financial settlement mechanism for charging or paying balance responsible parties for their imbalances;

Imbalance settlement period (ISP) - the time unit for which balance responsible parties’ imbalance is calculated and is equal to 60 min;

Internal net imbalance energy volume - the difference between the AC scheduled, AC actual measured and imbalance netting flow exchange of power system and shall be equal to internal imbalance volume of BRPs (netted per direction);

Internal total imbalance energy volume - imbalance volume of the system based on internal BRP imbalances per directions for short and long;

Marginal pricing - a principle according to which the price of the last activated balancing energy bid following merit order applies to all activated bids during the particular imbalance settlement period (pay-as-cleared);

Manual frequency restoration reserves (mFRR) - the active power reserves activated manually to restore system frequency to the nominal frequency and for synchronous area consisting of more than one LFC area power balance to the scheduled value;

Measured AC balance - measured flow on AC cross-border metering points of power system;

Merit order list (MOL) - a list of balancing energy bids of a Connecting TSO’s control area by product sorted in order of their bid prices;

Nominated TSO - assigned TSO, who is responsible for initiating activation of balancing energy bids in normal system operation state with purpose to minimize Baltic ACE;

Normal activation - activation of balancing energy bids for Baltic CoBA balancing purposes with aim of minimizing the Baltic ACE;

NTC - net transmission capacity of the designated cross-border interconnections is the maximum trading capacity, which is permitted in transmission cross-border interconnections compatible with operational security standards and taking into account the technical uncertainties on planned network conditions for each TSO;

Open balance provider (OBP) - electricity trader or transmission system operator, which provides power system balancing services to the Baltic CoBA;

Position - the declared energy volume of a balance responsible party used for the calculation of its imbalance;

Preparation period - the time duration between the request by the TSO and start of the energy delivery;

Responsible TSO - TSO, who performs the calculation of cross-zonal capacity within the balancing timeframe;

Requesting TSO - the TSO that requests the delivery of balancing energy;

Scheduled AC balance - fixed energy flow from day ahead, intra-day markets and balancing activities on AC cross-border interconnections of power system;

Settlement coordinator - a TSO that is responsible for carrying out Baltic CoBA settlement, and for the trade of Baltic not netted imbalance energy with the OBP;

Single portfolio - grid injection and offtake volumes are netted into a single balance responsible party’s account;

Single pricing - a single imbalance price for system shortage and system surplus;

Standard product - a harmonised balancing energy product defined by all TSOs for the exchange of balancing services;

Special activation - activation of balancing energy bids for other purposes than Baltic CoBA balancing purposes and can be specified as special activation countertrade or special activation other;

Specific product - a balancing energy product different from a standard product;

TSO - a transmission system operator for electricity;

TSO-TSO model - a model for the exchange of balancing services where the balancing service provider provides balancing services to its connecting TSO, which then provides these balancing services to the requesting TSO;

Total transfer capacity (TTC) - total transfer capacity of the designated cross-border interconnections is the maximum transmission of active power, which is permitted in transmission cross-border interconnections compatible with operational security standards applicable for each TSO;

Upward activation - balancing energy bid activation in order to increase generation or reduce consumption;

Validity period - the time period when the balancing energy bid offered by the balancing service provider can be activated, whereas all the characteristics of the product are respected. The validity period is defined by a beginning time and an ending time.

 

The objective of the Baltic balancing market and imbalance settlement rules is to determine terms and conditions that are applicable for: 

a) BSPs in order to participate in the Baltic balancing market and provide balancing energy upon connecting TSO’s request and that are binding for each connecting TSO in order to ensure the participation of BSPs in the Baltic balancing market.

b) Describe the TSO-BRP imbalance settlement mechanisms incl. the calculation of imbalances and imbalance prices 

This information is publicly available Annex of Baltic TSOs’ Agreement on the operation and settlement of the Baltic coordinated balancing area (hereinafter – Baltic TSOs’ Agreement). The breach of the Baltic balancing market rules is not considered as a breach of the Baltic TSOs’ Agreement. All disputes arising out of non-compliance with these rules shall be settled between the BSP and relevant TSO on a national level.

1.  The Baltic TSOs – Elering AS, AS “Augstsprieguma tīkls”, LITGRID AB shall organize and operate common Baltic balancing market.

2.  In order to operate common Baltic balancing market and exchange balancing energy, Baltic TSOs shall apply TSO-TSO model pursuant to relevant European Commission regulations and guidelines, national legal framework of each Baltic country and mutual TSO-TSO agreements.

3.  The Baltic TSOs are responsible to exchange the balancing energy in order to ensure the operational security and to maintain the balance in Baltic power systems. At the same time, each Baltic TSO remains responsible for maintaining operational security of its control area.

4.  All Baltic TSOs shall cooperate to maintain balance within CoBA and minimize Baltic ACE.

5.  ISP for Baltic CoBA is 60 minutes.

6.  All Baltic TSOs shall use the following balancing energy products

6.1. Baltic mFRR standard product from BSPs within Baltic CoBA;

6.2. mFRR standard products from BSPs outside Baltic CoBA that are compatible with Baltic mFRR standard product. These bids are reflected in Baltic CMOL with forecasted price. 

6.3. Baltic emergency reserve (ER) mFRR specific product from the BSPs within and outside the Baltic CoBA.

7.  Baltic mFRR standard and ER mFRR specific products shall comply with the requirements set out in table 1. 

Table 1. Baltic mFRR standard and ER mFRR specific product specification

Parameter mFRR standard product ER mFRR specific product
Preparation period Agreed during the phone call between Connecting TSO and BSP
Ramping period Not more than 15 minutes
Full activation time Not more than 15 minutes
Minimum and maximum quantity MIN = 1 MW; MAX = no restrictions; Resolution 1 MW
Deactivation period Not more than 15 minutes
Pricing method Marginal for Normal activation; Pay as bid of BSP for special activation Pay as bid of BSP
Minimum and maximum price MIN = not determined; MAX = 5000 EUR/MWh; Accuracy 0.01 EUR/MWh
Divisibility To be defined by BSP (Divisible or not divisible)
Minimum and maximum duration period MIN = 1 minutes; MAX = 60 minutes (but not more than until the of ISP); Resolution 1 MW
Validity period 60 minutes Not determined
Mode of activation Manual
Minimum duration between the end of deactivation period and the following activation Not determined
Linking of bids Linking of bids in time is not allowed. Bids can be linked in power for the same ISP, meaning that bid 2 can be activated only in case bid 1 is activated. If bid 1 is not activated, then bid 2 is unavailable. Linking of balancing energy bids is one directional.
Settlement volume determination: required start of delivery end time of the order Block product of between required start of delivery and end time of order. Energy is determined in 0.001 MWh accuracy.
Gate closure time (GCT) of the BSP offers H-45 minutes D-1 16:00 EET
Firmness of the bids All received bids are firm (fixed). BSP has responsibility to inform TSO if there are unplanned technical restrictions to execute the bid after the gate closure time but not later than activation order was provided. All received bids are firm (fixed). Bids may be not available after activation for 12 hours or longer period.

8.  Only BSPs approved by their connecting TSO can participate in Baltic balancing market by submitting their balancing energy bids to their connecting TSO and executing activated bids upon the connecting TSO’s request.

9.  The Nominated TSO is responsible for operation of the Baltic balancing market and initiating activation of balancing energy bids in normal system operation state. 

10. Each connecting TSO shall be responsible for: 

10.1.  maintaining operational security of its control area;

10.2. initiating balancing energy bids for other purposes than balancing; 

10.3. ensuring BSP’s energy bid compliance with the Baltic CoBA market requirements;

10.4. ensuring information exchange between BSP within TSO’s imbalance area and the Nominated TSO;

10.5. performing balancing settlement within each TSO’s imbalance area.

 

11.  BSPs may submit and update their balancing energy bids separately:

11.1.  mFRR standard product – upward activation;

11.2. mFRR standard product – downward activation;

11.3. ER mFRR specific product – upward activation.

12.  After balancing energy gate closure time all submitted balancing energy bids become firm and no further bid updates are allowed. Balancing energy gate closure time for a BSP to submit bids for its connecting TSO: 

12.1. for all ER mFRR specific product bids for the respective day is 16:00 EET the day before;

12.2. for all mFRR standard product bids for the respective ISP is 45 minutes before the ISP.

13.  Connecting TSOs verify bids received from BSPs:

13.1.  if the bid is verified, the connecting TSO shall include the bid in the respective merit order list (MOL) and forward it to the Nominated TSO in accordance with Baltic TSOs’ Agreement;

13.2.  if the bid is rejected, the connecting TSO shall inform respective BSP without undue delay in accordance with the connecting TSO and BSP mutual agreement. 

14.  After receiving MOLs from all connecting TSOs, the Nominated TSO shall arrange and continuously update Baltic common merit order lists (CMOLs). All CMOLs are shared among all Baltic TSOs. Bids in CMOLs are arranged based on most advantageous price criteria (merit order). There are three Baltic CMOLs:

14.1.  mFRR standard product – upward activation (bid with lower price has higher priority);

14.2.  mFRR standard product – downward activation (bid with higher price has higher priority);

14.3.  ER mFRR specific product – upward activation (bid with lower price has higher priority).

15.  If a bid becomes unavailable due to technical issues, BSP shall inform its connecting TSO with undue delay. The connecting TSO with undue delay shall indicate all such bids as unavailable in the respective Baltic CMOL.

 

16.  Balancing energy bid activation in Baltic CoBA is executed by the Nominated TSO or the requesting TSOs with respect to:

16.1.   continuous Baltic ACE forecast for the ISP - the objective of activation is to minimize Baltic ACE;

16.2.  available cross-zonal capacity for the ISP - balancing energy bids can only be activated, if there is available cross-zonal capacity within the balancing timeframe and activation of these bids do not create congestion during the particular ISP;

16.3.  CMOLs and submitted bid specification for the ISP – to extent it is technically feasible, bid activation follows most advantageous price criteria.

17.  Balancing energy bids from Baltic CMOLs can be activated in the three following cases:

17.1.  Normal activation for Baltic CoBA balancing purposes – initiated by Nominated TSO, activated by the connecting TSO;

17.2.  Special activation for countertrade purposes – initiated by requesting TSO, activated by the connecting TSO; 

17.3.  Special activation for other purposes (system constrains, network issues) or on the request of non-Baltic TSO – initiated by the requesting TSO, activated by the connecting TSO.

18.  Normal and special activation for upward and downward activation is applied to bids from:

18.1.  mFRR standard product CMOLs;

18.2.  ER mFRR specific product CMOLs only if there are no available bids on mFRR standard product CMOLs.

19.  When executing normal activation, the Nominated TSO shall initiate to activate:

19.1.    available bid with the lowest price for upward activation;

19.2.   available bid with the highest price for downward activation;

19.3.   available bids located within Baltic area prior to bids located in non-Baltic area in case these bids are with the same price;

19.4.   all available bids with the same price in accordance with pro-rata principle (proportionally to the volume of the bid) for cases when the most advantageous price criteria is fulfilled by multiple bids in the same CMOL if all multiple bids are within Baltic area. 

20.  Normal and special activation of balancing energy bids can be performed not following most advantageous price criteria listed in paragraph 19 in following cases:

20.1.   when the most price advantageous bid cannot be activated due to CZCBT constraints;

20.2.   when the most price advantageous bid is an indivisible bid, which exceeds the activation needs. The indivisible bid shall be skipped, and the next available bid in the CMOL shall be activated in required volume. The indivisible bid can still be activated, if activation does not compromise system security and contributes to minimizing the balancing costs during a particular ISP;

20.3.   when the most price advantageous bid is linked with another bid that has a lower price advantage. The linked bids can still be activated, if activation does not compromise system security and contributes to minimizing the balancing costs during a particular ISP;

20.4.   when the most price advantageous bid for special activation purposes does not contribute towards the objective of the special activation;

20.5.   except in the normal power system state, when the most price advantageous bid would not mitigate the severity of the current system state.

21.  Balancing energy bids shall not be activated or reserved before the corresponding balancing energy gate closure time and the intraday cross-zonal gate closure time, except cases of alert system state or emergency system state to mitigate the severity of these system states.

 

22.  Calculation of cross-zonal capacity within the balancing timeframe is performed for Estonian, Latvian, Lithuanian, Russian and Belarusian power systems as well as high-voltage direct current (HVDC) connections with Finland, Sweden and Poland by taking into account actual power flows on AC cross-border interconnections and for HVDC cross-border interconnections, already allocated capacities on these interconnections, as well as cross border capacities (TTC and NTC) in the internal and external interconnections of Baltic power system. 

23.  Cross-zonal capacity within the balancing timeframe is calculated separately for upward activation and downward activation based on near real time data of the Baltic power system. Based on calculated cross-zonal capacity within the balancing timeframe, the Nominated TSO takes decision, whether upward activation or downward activation is permissible in the particular power system during the particular ISP.

24.  Cross-zonal capacity within the balancing timeframe for certain control area is determined as congested if there was need for balancing energy activation, but some bid(s) according to CMOL was skipped or partially skipped in this area due to potential limitations of cross-zonal capacity within the balancing timeframe.

 

25.  Balancing price for balancing energy bids activated via normal activation from mFRR standard product CMOLs is determined based on marginal pricing:

25.1.    balancing price for upward activation shall be the most expensive activated upward balancing energy bid in power (MW);

25.2.   balancing price for downward activation balancing energy bids shall be the least expensive activated downward balancing energy bid in power (MW).

26.  The pricing of upward ER mFRR specific product energy bids activated via normal activation shall be based on pay-as-bid principle. 

27.  Balancing price directly used as a component in imbalance price calculations in Baltic CoBA  is determined for each Baltic imbalance area based on marginal pricing via normal activation from Baltic CMOLs for each ISP:

27.1.    if without activation within the ISP the Baltic imbalance area would have had energy shortage, the balancing price is the highest price of the upward balancing energy (standard mFFR or specific ER mFFR product) bid activated via normal activation;

27.2.    if without activation within the ISP the Baltic imbalance area would have had energy surplus, the balancing price is the lowest price of the downward balancing energy (standard mFFR product) bid activated via normal activation;

27.3.    if no bids have been activated in accordance with paragraphs 27.1 and 27.2 the balancing price is set equal to day-ahead market price in respective ISP.

28.  The prices in paragraphs 25 and 27  are determined for each Baltic imbalance area separately:

28.1.    if during the ISP there was no congestion of cross-zonal capacity within the balancing timeframe, all BSPs which bids were activated via normal activation in the same direction during the ISP shall be entitled to the same balancing price regardless of the price set in the submitted bid.

28.2.    if during the ISP congestion of cross-zonal capacity within balancing timeframe occurs, Baltic CoBA shall be split into separate balancing price areas. Balancing price for each area is defined according to principles in paragraph 27.

29.  Balancing price may be higher than the price of the most expensive upward activation bid or lower than cheapest downward activation bid in Baltic CMOLs in the case of balancing energy exchange with other non-Baltic TSO where balancing energy price is defined after the respective ISP.

30.  Balancing price for bids activated via special activation are settled based on pay-as-bid principle. Costs and gains from bids activated via special activation do not impact imbalance price calculations.

31.  if during ISP both normal and special activation take place, for settlement purposes the more advantageous bids firstly shall be assigned to normal activation based on the volume activated. The price for special activation is determined as follow:

31.1.    the price of the bids from the upward activation mFRR standard product CMOL shall be equal or higher than the marginal price set for normal activation;

31.2.   the price of the bids from the downward activation mFRR standard product CMOL shall be equal or lower than the marginal price set for normal activation.

32.  The Baltic transmission system operators apply harmonized imbalance settlement rules for their respective imbalance areas. 

33.  Baltic TSOs have agreed to harmonized imbalance settlement framework that complies with the following principles:

33.1.     TSOs shall not incur neither economic gains nor losses with regards to the financial outcome of the imbalance settlement; 

33.2.    imbalance price fully reflects costs and income from balancing services;

33.3.    imbalance price does not include costs for imbalance settlement administration.

34.  Baltic TSOs shall apply the same settlement mechanism for calculating: position and allocated volume; imbalance adjustments; imbalance and imbalance price.

35.  Each Baltic TSO within its imbalance area shall calculate position, allocated volume, imbalance adjustment, imbalance:

35.1.     for each balance responsible party (BRP);

35.2.    for each imbalance settlement period (ISP).

36.  The Baltic TSOs shall apply the single settlement (portfolio) model, where for the purpose of imbalance settlement calculations production and consumption are aggregated within the same portfolio. 

37.  The Baltic TSOs shall apply the single pricing model, where single price is applied for all imbalances (for shortage and surplus direction) for each imbalance price area within ISP.

38.  Each Baltic TSO may develop and apply separate settlement mechanism and administrative processes for:

38.1.    imbalance administration cost allocation;

38.2.   collateral calculations;

38.3.   information exchange regarding imbalance settlement calculations.

 

39.  Each Baltic TSO within Baltic CoBA shall perform imbalance settlement within its imbalance area and shall determine the imbalance payment amount for BRP in accordance to the rules set out in this section.

40.  Imbalance payment amount (Cip) for a single accounting period shall be calculated as follows:

Cip = ΣTt=1 Cimb t – C  , whereas

Cip – imbalance payment for accounting period (EUR). BRP pays to TSO, if Cip is negative, TSO pays to BRP, if Cip is positive;

t – imbalance settlement period (ISPt);

T – number of imbalance periods within a single accounting period; 

Cimb t – imbalance cost for ISPt (EUR);

Ca – imbalance administrative payment for a single accounting period (EUR).

41.  Imbalance cost (Cimb t) for ISPt shall be calculated as follows:

Cimb t =  Eimb t * Pimb t , whereas

Eimb t – BRP’s imbalance in ISPt (MWh);

Pimb t – imbalance price for imbalance area in ISPt (EUR/MWh).

42.  BRP’s imbalance, Eimb t, shall indicate the size and the direction of the settlement transaction between the BRP and the TSO. An imbalance can have alternatively:

42.1.   a negative sign indicates BRP’s energy shortage and BRP shall procure shortage energy from the TSO at the imbalance price;

42.2.   a positive sign, indicates BRP’s surplus and BRP shall sell the energy surplus to TSO at the imbalance price.

43.  Each BRP’s respective imbalance (Eimb t) in ISPt shall be calculated as follows:

Eimb t = Ealc t - Efp t , whereas

Ealc t – allocated volume for BRP in ISPt. Ealc t reflects metered net volume of actual physical generation and consumption within ISPt over the metering points within BRP’s imbalance area (MWh). For calculation purposes generation volume is assigned positive sign and consumption volume is assigned negative sign;

Efp t – final position of BRP in ISPt. Efp t reflects BRP’s declared scheduled net energy volume of commercial transactions on organised markets or between BRPs including any imbalance adjustment applied to that BRP, within a given ISPt (MWh). For calculation purposes generation volume is assigned positive sign and consumption volume is assigned negative sign;

44.  Final position (Efp t) is calculated as follows:

Efp t = Ep t + Ead j t , whereas

Ep t – position of BRP in ISPt. Efp t reflects BRP’s declared scheduled net energy volume of commercial transactions on organised markets or between BRPs within a given ISPt (MWh) in accordance with local balancing agreements;

Ead j t – imbalance adjustment reflects required changes in BRP’s final position Efp t to account for the balancing energy activated by order of the TSO and executed by a BSP within BRP’s imbalance area. Ead j t can be both positive and negative, depending on the direction balancing activation had (MWh).

45.  Each TSO shall establish processes for information exchange in regards to BRP’s final position and BRP’s allocated energy volume.

46.  The imbalance price is determined based on the direction of the Baltic CoBA imbalance position during particular ISP (exemplified in table 2). Imbalance price for ISPt (Pimb t) for each TSO’s respective imbalance area shall be calculated as follows:

46.1.   For ISPt where there is overall energy shortage within Baltic CoBA, the single imbalance price shall be calculated:

Pimb t = Pbal t + Ptc t , whereas

Pbal t – balancing energy price for ISPt (EUR/MWh). Pbal t shall be calculated as in accordance to Baltic balancing market rules;

Ptc t – targeted component for ISPt (EUR/MWh).

46.2.   For ISPt where there is overall energy shortage within Baltic CoBA, the single imbalance price shall be calculated:

Pimb t = Pbal t - Ptc t 

Table 2. Single imbalance price methodology

Imbalance position in ISPt Baltic CoBA shortage Baltic CoBA surplus
BRP shortage Pimb t = Pbal t + Ptc t Pimb t = Pbal t - Ptc t 
   BRP surplus

 

47.  Targeted component (Ptc t) is the same value for each ISP in accounting period and is calculated, taking into account all expenses and/or income from energy trade for not netted area control error (ACE) with open balance provider and other expenses and/or income in regards to CoBA operative activities occurred during accounting period, that are not included in balancing price. Targeted component shall be calculated as follows:

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Cbal t  – total costs (+)/ revenue (-) of activated balancing energy incurred by Baltic TSOs in the ISPt (EUR)

COBP t  – total costs (+)/ revenue (-) of energy delivered by/ to open balance provider in the ISPt (EUR);

N – total number of BRPs in CoBA;

n – particular BRP.

48.  After the end of an ISP all Baltic TSOs ensure that all information regarding activation orders is complete and publicly available on Baltic balancing market dashboard and/or Baltic TSOs websites and on the central ENTSO-E information transparency platform.

49.  As the result of an operational hour at least (but not limited to) following information is available at Baltic balancing market dashboard after ISP:

49.1.   current balancing state – preliminary Baltic ACE;

49.2.   the volumes of aggregated balancing energy bids – CMOLs;

49.3.   cross zonal capacities within the balancing timeframe;

49.4.   the volumes of aggregated activated balancing energy bids;

49.5.   balancing energy prices;

49.6.   imbalance volumes;

50.  All Baltic TSOs ensure that information relevant to imbalance price calculations is available on Baltic TSOs’ websites and/or Baltic balancing market dashboard. Imbalance prices for each ISPtshall be available no later than the 5th working day of the month following the according accounting period.

51.  After each accounting period Baltic TSOs shall publish monthly report containing aggregated financial data regarding balancing expenses and incomes.

 

In addition to the terms defined throughout the Agreement, the following definitions shall have the following meanings with regard to this Agreement:

Already allocated capacity (AAC) - the total amount of allocated transmission rights;

AC imbalance flow - the difference between the AC scheduled and AC actual measured flow exchange of power system (includes imbalance netting volume);

Accounting period - the time period for which the settlement is made. The accounting period is one calendar month in EET;

Allocated volume - an energy volume physically injected or withdrawn from the system and attributed to a balance responsible party for the calculation of the imbalance of that balance responsible party;

Area control error (ACE) - the difference between measured physical flow and final external schedules of coordinated balancing area during imbalance settlement period in MWh-s;

Balance responsible party (BRP) - market participant or its chosen representative responsible for its imbalances;

Balancing - all actions and processes, on all timelines, through which TSOs ensure, in a continuous way, the maintenance of system frequency within a predefined stability range, and compliance with the amount of reserves needed with respect to the required quality;

Balancing energy - energy used by TSOs to perform balancing and provided by a balancing service provider;

Balancing energy gate closure time (GCT) - the point in time when submission or update of a balancing energy bid for a standard product on a common merit order list is no longer permitted;

Balancing market - the entirety of institutional, commercial and operational arrangements that establish market-based management of balancing;

Balancing services - balancing energy or balancing capacity, or both;

Balancing service provider (BSP) - a market participant with reserve-providing units or reserve-providing groups able to provide balancing services to TSOs;

Baltic ACE - the Baltic’s not netted imbalance, which is settled through the trade of imbalance energy with the open balance provider of the Baltic power system;

Baltic coordinated balancing area (Baltic CoBA) - a cooperation between TSOs of Estonia, Latvia and Lithuania with respect to the exchange of balancing services, sharing of reserves, operating the imbalance netting process and imbalance settlement;

Baltic CoBA imbalance position - the direction of all Baltic BRPs’ imbalances in a given ISP;

Baltic not netted imbalance - the Baltic’s not netted imbalance, which is settled through the trade of imbalance energy with the open balance provider of the Baltic system;

Baltic power system - the power systems of Estonia, Latvia and Lithuania;

Baltic TSOs - the transmission system operators for electricity of Estonia, Latvia and Lithuania;

Common merit order list (CMOL) - a list of balancing energy bids sorted in order of their bid prices, used for the activation of balancing energy bids within a coordinated balancing area;

Connecting TSO - the TSO that operates the scheduling area in which balancing service providers and balance responsible parties shall be compliant with the terms and conditions related to balancing;

Cross-border interconnection - a physical transmission link (e.g. tie-lines) which connects two power systems;

Cross-zonal capacity within the balancing timeframe (CZCBT) - the capability of the interconnected power systems to accommodate energy exchange for balancing purposes among Estonian, Latvian, Lithuanian power systems and from Finnish, Swedish, Polish, Russian and Belarusian power systems as well as the capability of energy exchange for balancing purposes from Estonian, Latvian, Lithuanian power systems to Finnish, Swedish, Polish, Russian and Belarusian power systems. Cross-zonal capacity within the balancing timeframe has to always include the direction whether it is from or to the relevant power system, i.e. up activation or down activation;

Deactivation period - the time period for ramping, from full delivery or withdrawal back to a set point;

Delivery period - the time period of delivery during which the balancing service provider delivers the full requested change of power in-feed to or the full requested change of withdrawals to the system;

Divisibility - the possibility for the TSO to use only part of the balancing energy bids offered by the balancing service provider, either in terms of power activation or time duration;

Downward activation - balancing energy bid activation in order to reduce generation or increase consumption;

Emergency reserve (ER) mFRR - the specific upward mFRR that is maintained by TSOs in accordance with multi party agreements and national requirements;

Exchange of balancing energy - the activation of balancing energy bids for the delivery of balancing energy to a TSO in a different scheduling area than the one in which the activated balancing service provider is connected;

Full activation time - the time period between the activation request by a TSO and the corresponding full activation of the concerned product;

Imbalance - an energy volume calculated for a balance responsible party and representing the difference between the allocated volume attributed to that balance responsible party and the final position of that balance responsible party, including any imbalance adjustment applied to that balance responsible party, within a given imbalance settlement period;

Imbalance adjustment - an energy volume representing the balancing energy from a balancing service provider and applied by the connecting TSO for an imbalance settlement period to the concerned balance responsible parties, for the calculation of the imbalance of these balance responsible parties;

Imbalance price - the price, positive, zero, or negative, in each imbalance settlement period for an imbalance in each direction;

Imbalance settlement - a financial settlement mechanism for charging or paying balance responsible parties for their imbalances;

Imbalance settlement period (ISP) - the time unit for which balance responsible parties’ imbalance is calculated and is equal to 60 min;

Internal net imbalance energy volume - the difference between the AC scheduled, AC actual measured and imbalance netting flow exchange of power system and shall be equal to internal imbalance volume of BRPs (netted per direction);

Internal total imbalance energy volume - imbalance volume of the system based on internal BRP imbalances per directions for short and long;

Marginal pricing - a principle according to which the price of the last activated balancing energy bid following merit order applies to all activated bids during the particular imbalance settlement period (pay-as-cleared);

Manual frequency restoration reserves (mFRR) - the active power reserves activated manually to restore system frequency to the nominal frequency and for synchronous area consisting of more than one LFC area power balance to the scheduled value;

Measured AC balance - measured flow on AC cross-border metering points of power system;

Merit order list (MOL) - a list of balancing energy bids of a Connecting TSO’s control area by product sorted in order of their bid prices;

Nominated TSO - assigned TSO, who is responsible for initiating activation of balancing energy bids in normal system operation state with purpose to minimize Baltic ACE;

Normal activation - activation of balancing energy bids for Baltic CoBA balancing purposes with aim of minimizing the Baltic ACE;

NTC - net transmission capacity of the designated cross-border interconnections is the maximum trading capacity, which is permitted in transmission cross-border interconnections compatible with operational security standards and taking into account the technical uncertainties on planned network conditions for each TSO;

Open balance provider (OBP) - electricity trader or transmission system operator, which provides power system balancing services to the Baltic CoBA;

Position - the declared energy volume of a balance responsible party used for the calculation of its imbalance;

Preparation period - the time duration between the request by the TSO and start of the energy delivery;

Responsible TSO - TSO, who performs the calculation of cross-zonal capacity within the balancing timeframe;

Requesting TSO - the TSO that requests the delivery of balancing energy;

Scheduled AC balance - fixed energy flow from day ahead, intra-day markets and balancing activities on AC cross-border interconnections of power system;

Settlement coordinator - a TSO that is responsible for carrying out Baltic CoBA settlement, and for the trade of Baltic not netted imbalance energy with the OBP;

Single portfolio - grid injection and offtake volumes are netted into a single balance responsible party’s account;

Single pricing - a single imbalance price for system shortage and system surplus;

Standard product - a harmonised balancing energy product defined by all TSOs for the exchange of balancing services;

Special activation - activation of balancing energy bids for other purposes than Baltic CoBA balancing purposes and can be specified as special activation countertrade or special activation other;

Specific product - a balancing energy product different from a standard product;

TSO - a transmission system operator for electricity;

TSO-TSO model - a model for the exchange of balancing services where the balancing service provider provides balancing services to its connecting TSO, which then provides these balancing services to the requesting TSO;

Total transfer capacity (TTC) - total transfer capacity of the designated cross-border interconnections is the maximum transmission of active power, which is permitted in transmission cross-border interconnections compatible with operational security standards applicable for each TSO;

Upward activation - balancing energy bid activation in order to increase generation or reduce consumption;

Validity period - the time period when the balancing energy bid offered by the balancing service provider can be activated, whereas all the characteristics of the product are respected. The validity period is defined by a beginning time and an ending time.

 

The objective of the Baltic balancing market and imbalance settlement rules is to determine terms and conditions that are applicable for: 

a) BSPs in order to participate in the Baltic balancing market and provide balancing energy upon connecting TSO’s request and that are binding for each connecting TSO in order to ensure the participation of BSPs in the Baltic balancing market.

b) Describe the TSO-BRP imbalance settlement mechanisms incl. the calculation of imbalances and imbalance prices 

This information is publicly available Annex of Baltic TSOs’ Agreement on the operation and settlement of the Baltic coordinated balancing area (hereinafter – Baltic TSOs’ Agreement). The breach of the Baltic balancing market rules is not considered as a breach of the Baltic TSOs’ Agreement. All disputes arising out of non-compliance with these rules shall be settled between the BSP and relevant TSO on a national level.

1.  The Baltic TSOs – Elering AS, AS “Augstsprieguma tīkls”, LITGRID AB shall organize and operate common Baltic balancing market.

2.  In order to operate common Baltic balancing market and exchange balancing energy, Baltic TSOs shall apply TSO-TSO model pursuant to relevant European Commission regulations and guidelines, national legal framework of each Baltic country and mutual TSO-TSO agreements.

3.  The Baltic TSOs are responsible to exchange the balancing energy in order to ensure the operational security and to maintain the balance in Baltic power systems. At the same time, each Baltic TSO remains responsible for maintaining operational security of its control area.

4.  All Baltic TSOs shall cooperate to maintain balance within CoBA and minimize Baltic ACE.

5.  ISP for Baltic CoBA is 60 minutes.

6.  All Baltic TSOs shall use the following balancing energy products

6.1. Baltic mFRR standard product from BSPs within Baltic CoBA;

6.2. mFRR standard products from BSPs outside Baltic CoBA that are compatible with Baltic mFRR standard product. These bids are reflected in Baltic CMOL with forecasted price. 

6.3. Baltic emergency reserve (ER) mFRR specific product from the BSPs within and outside the Baltic CoBA.

7.  Baltic mFRR standard and ER mFRR specific products shall comply with the requirements set out in table 1. 

Table 1. Baltic mFRR standard and ER mFRR specific product specification

Parameter mFRR standard product ER mFRR specific product
Preparation period Agreed during the phone call between Connecting TSO and BSP
Ramping period Not more than 15 minutes
Full activation time Not more than 15 minutes
Minimum and maximum quantity MIN = 1 MW; MAX = no restrictions; Resolution 1 MW
Deactivation period Not more than 15 minutes
Pricing method Marginal for Normal activation; Pay as bid of BSP for special activation Pay as bid of BSP
Minimum and maximum price MIN = not determined; MAX = 5000 EUR/MWh; Accuracy 0.01 EUR/MWh
Divisibility To be defined by BSP (Divisible or not divisible)
Minimum and maximum duration period MIN = 1 minutes; MAX = 60 minutes (but not more than until the of ISP); Resolution 1 MW
Validity period 60 minutes Not determined
Mode of activation Manual
Minimum duration between the end of deactivation period and the following activation Not determined
Linking of bids Linking of bids in time is not allowed. Bids can be linked in power for the same ISP, meaning that bid 2 can be activated only in case bid 1 is activated. If bid 1 is not activated, then bid 2 is unavailable. Linking of balancing energy bids is one directional.
Settlement volume determination: required start of delivery end time of the order Block product of between required start of delivery and end time of order. Energy is determined in 0.001 MWh accuracy.
Gate closure time (GCT) of the BSP offers H-45 minutes D-1 16:00 EET
Firmness of the bids All received bids are firm (fixed). BSP has responsibility to inform TSO if there are unplanned technical restrictions to execute the bid after the gate closure time but not later than activation order was provided. All received bids are firm (fixed). Bids may be not available after activation for 12 hours or longer period.

8.  Only BSPs approved by their connecting TSO can participate in Baltic balancing market by submitting their balancing energy bids to their connecting TSO and executing activated bids upon the connecting TSO’s request.

9.  The Nominated TSO is responsible for operation of the Baltic balancing market and initiating activation of balancing energy bids in normal system operation state. 

10. Each connecting TSO shall be responsible for: 

10.1.  maintaining operational security of its control area;

10.2. initiating balancing energy bids for other purposes than balancing; 

10.3. ensuring BSP’s energy bid compliance with the Baltic CoBA market requirements;

10.4. ensuring information exchange between BSP within TSO’s imbalance area and the Nominated TSO;

10.5. performing balancing settlement within each TSO’s imbalance area.

 

11.  BSPs may submit and update their balancing energy bids separately:

11.1.  mFRR standard product – upward activation;

11.2. mFRR standard product – downward activation;

11.3. ER mFRR specific product – upward activation.

12.  After balancing energy gate closure time all submitted balancing energy bids become firm and no further bid updates are allowed. Balancing energy gate closure time for a BSP to submit bids for its connecting TSO: 

12.1. for all ER mFRR specific product bids for the respective day is 16:00 EET the day before;

12.2. for all mFRR standard product bids for the respective ISP is 45 minutes before the ISP.

13.  Connecting TSOs verify bids received from BSPs:

13.1.  if the bid is verified, the connecting TSO shall include the bid in the respective merit order list (MOL) and forward it to the Nominated TSO in accordance with Baltic TSOs’ Agreement;

13.2.  if the bid is rejected, the connecting TSO shall inform respective BSP without undue delay in accordance with the connecting TSO and BSP mutual agreement. 

14.  After receiving MOLs from all connecting TSOs, the Nominated TSO shall arrange and continuously update Baltic common merit order lists (CMOLs). All CMOLs are shared among all Baltic TSOs. Bids in CMOLs are arranged based on most advantageous price criteria (merit order). There are three Baltic CMOLs:

14.1.  mFRR standard product – upward activation (bid with lower price has higher priority);

14.2.  mFRR standard product – downward activation (bid with higher price has higher priority);

14.3.  ER mFRR specific product – upward activation (bid with lower price has higher priority).

15.  If a bid becomes unavailable due to technical issues, BSP shall inform its connecting TSO with undue delay. The connecting TSO with undue delay shall indicate all such bids as unavailable in the respective Baltic CMOL.

 

16.  Balancing energy bid activation in Baltic CoBA is executed by the Nominated TSO or the requesting TSOs with respect to:

16.1.   continuous Baltic ACE forecast for the ISP - the objective of activation is to minimize Baltic ACE;

16.2.  available cross-zonal capacity for the ISP - balancing energy bids can only be activated, if there is available cross-zonal capacity within the balancing timeframe and activation of these bids do not create congestion during the particular ISP;

16.3.  CMOLs and submitted bid specification for the ISP – to extent it is technically feasible, bid activation follows most advantageous price criteria.

17.  Balancing energy bids from Baltic CMOLs can be activated in the three following cases:

17.1.  Normal activation for Baltic CoBA balancing purposes – initiated by Nominated TSO, activated by the connecting TSO;

17.2.  Special activation for countertrade purposes – initiated by requesting TSO, activated by the connecting TSO; 

17.3.  Special activation for other purposes (system constrains, network issues) or on the request of non-Baltic TSO – initiated by the requesting TSO, activated by the connecting TSO.

18.  Normal and special activation for upward and downward activation is applied to bids from:

18.1.  mFRR standard product CMOLs;

18.2.  ER mFRR specific product CMOLs only if there are no available bids on mFRR standard product CMOLs.

19.  When executing normal activation, the Nominated TSO shall initiate to activate:

19.1.    available bid with the lowest price for upward activation;

19.2.   available bid with the highest price for downward activation;

19.3.   available bids located within Baltic area prior to bids located in non-Baltic area in case these bids are with the same price;

19.4.   all available bids with the same price in accordance with pro-rata principle (proportionally to the volume of the bid) for cases when the most advantageous price criteria is fulfilled by multiple bids in the same CMOL if all multiple bids are within Baltic area. 

20.  Normal and special activation of balancing energy bids can be performed not following most advantageous price criteria listed in paragraph 19 in following cases:

20.1.   when the most price advantageous bid cannot be activated due to CZCBT constraints;

20.2.   when the most price advantageous bid is an indivisible bid, which exceeds the activation needs. The indivisible bid shall be skipped, and the next available bid in the CMOL shall be activated in required volume. The indivisible bid can still be activated, if activation does not compromise system security and contributes to minimizing the balancing costs during a particular ISP;

20.3.   when the most price advantageous bid is linked with another bid that has a lower price advantage. The linked bids can still be activated, if activation does not compromise system security and contributes to minimizing the balancing costs during a particular ISP;

20.4.   when the most price advantageous bid for special activation purposes does not contribute towards the objective of the special activation;

20.5.   except in the normal power system state, when the most price advantageous bid would not mitigate the severity of the current system state.

21.  Balancing energy bids shall not be activated or reserved before the corresponding balancing energy gate closure time and the intraday cross-zonal gate closure time, except cases of alert system state or emergency system state to mitigate the severity of these system states.

 

22.  Calculation of cross-zonal capacity within the balancing timeframe is performed for Estonian, Latvian, Lithuanian, Russian and Belarusian power systems as well as high-voltage direct current (HVDC) connections with Finland, Sweden and Poland by taking into account actual power flows on AC cross-border interconnections and for HVDC cross-border interconnections, already allocated capacities on these interconnections, as well as cross border capacities (TTC and NTC) in the internal and external interconnections of Baltic power system. 

23.  Cross-zonal capacity within the balancing timeframe is calculated separately for upward activation and downward activation based on near real time data of the Baltic power system. Based on calculated cross-zonal capacity within the balancing timeframe, the Nominated TSO takes decision, whether upward activation or downward activation is permissible in the particular power system during the particular ISP.

24.  Cross-zonal capacity within the balancing timeframe for certain control area is determined as congested if there was need for balancing energy activation, but some bid(s) according to CMOL was skipped or partially skipped in this area due to potential limitations of cross-zonal capacity within the balancing timeframe.

 

25.  Balancing price for balancing energy bids activated via normal activation from mFRR standard product CMOLs is determined based on marginal pricing:

25.1.    balancing price for upward activation shall be the most expensive activated upward balancing energy bid in power (MW);

25.2.   balancing price for downward activation balancing energy bids shall be the least expensive activated downward balancing energy bid in power (MW).

26.  The pricing of upward ER mFRR specific product energy bids activated via normal activation shall be based on pay-as-bid principle. 

27.  Balancing price directly used as a component in imbalance price calculations in Baltic CoBA  is determined for each Baltic imbalance area based on marginal pricing via normal activation from Baltic CMOLs for each ISP:

27.1.    if without activation within the ISP the Baltic imbalance area would have had energy shortage, the balancing price is the highest price of the upward balancing energy (standard mFFR or specific ER mFFR product) bid activated via normal activation;

27.2.    if without activation within the ISP the Baltic imbalance area would have had energy surplus, the balancing price is the lowest price of the downward balancing energy (standard mFFR product) bid activated via normal activation;

27.3.    if no bids have been activated in accordance with paragraphs 27.1 and 27.2 the balancing price is set equal to day-ahead market price in respective ISP.

28.  The prices in paragraphs 25 and 27  are determined for each Baltic imbalance area separately:

28.1.    if during the ISP there was no congestion of cross-zonal capacity within the balancing timeframe, all BSPs which bids were activated via normal activation in the same direction during the ISP shall be entitled to the same balancing price regardless of the price set in the submitted bid.

28.2.    if during the ISP congestion of cross-zonal capacity within balancing timeframe occurs, Baltic CoBA shall be split into separate balancing price areas. Balancing price for each area is defined according to principles in paragraph 27.

29.  Balancing price may be higher than the price of the most expensive upward activation bid or lower than cheapest downward activation bid in Baltic CMOLs in the case of balancing energy exchange with other non-Baltic TSO where balancing energy price is defined after the respective ISP.

30.  Balancing price for bids activated via special activation are settled based on pay-as-bid principle. Costs and gains from bids activated via special activation do not impact imbalance price calculations.

31.  if during ISP both normal and special activation take place, for settlement purposes the more advantageous bids firstly shall be assigned to normal activation based on the volume activated. The price for special activation is determined as follow:

31.1.    the price of the bids from the upward activation mFRR standard product CMOL shall be equal or higher than the marginal price set for normal activation;

31.2.   the price of the bids from the downward activation mFRR standard product CMOL shall be equal or lower than the marginal price set for normal activation.

32.  The Baltic transmission system operators apply harmonized imbalance settlement rules for their respective imbalance areas. 

33.  Baltic TSOs have agreed to harmonized imbalance settlement framework that complies with the following principles:

33.1.     TSOs shall not incur neither economic gains nor losses with regards to the financial outcome of the imbalance settlement; 

33.2.    imbalance price fully reflects costs and income from balancing services;

33.3.    imbalance price does not include costs for imbalance settlement administration.

34.  Baltic TSOs shall apply the same settlement mechanism for calculating: position and allocated volume; imbalance adjustments; imbalance and imbalance price.

35.  Each Baltic TSO within its imbalance area shall calculate position, allocated volume, imbalance adjustment, imbalance:

35.1.     for each balance responsible party (BRP);

35.2.    for each imbalance settlement period (ISP).

36.  The Baltic TSOs shall apply the single settlement (portfolio) model, where for the purpose of imbalance settlement calculations production and consumption are aggregated within the same portfolio. 

37.  The Baltic TSOs shall apply the single pricing model, where single price is applied for all imbalances (for shortage and surplus direction) for each imbalance price area within ISP.

38.  Each Baltic TSO may develop and apply separate settlement mechanism and administrative processes for:

38.1.    imbalance administration cost allocation;

38.2.   collateral calculations;

38.3.   information exchange regarding imbalance settlement calculations.

 

39.  Each Baltic TSO within Baltic CoBA shall perform imbalance settlement within its imbalance area and shall determine the imbalance payment amount for BRP in accordance to the rules set out in this section.

40.  Imbalance payment amount (Cip) for a single accounting period shall be calculated as follows:

Cip = ΣTt=1 Cimb t – C  , whereas

Cip – imbalance payment for accounting period (EUR). BRP pays to TSO, if Cip is negative, TSO pays to BRP, if Cip is positive;

t – imbalance settlement period (ISPt);

T – number of imbalance periods within a single accounting period; 

Cimb t – imbalance cost for ISPt (EUR);

Ca – imbalance administrative payment for a single accounting period (EUR).

41.  Imbalance cost (Cimb t) for ISPt shall be calculated as follows:

Cimb t =  Eimb t * Pimb t , whereas

Eimb t – BRP’s imbalance in ISPt (MWh);

Pimb t – imbalance price for imbalance area in ISPt (EUR/MWh).

42.  BRP’s imbalance, Eimb t, shall indicate the size and the direction of the settlement transaction between the BRP and the TSO. An imbalance can have alternatively:

42.1.   a negative sign indicates BRP’s energy shortage and BRP shall procure shortage energy from the TSO at the imbalance price;

42.2.   a positive sign, indicates BRP’s surplus and BRP shall sell the energy surplus to TSO at the imbalance price.

43.  Each BRP’s respective imbalance (Eimb t) in ISPt shall be calculated as follows:

Eimb t = Ealc t - Efp t , whereas

Ealc t – allocated volume for BRP in ISPt. Ealc t reflects metered net volume of actual physical generation and consumption within ISPt over the metering points within BRP’s imbalance area (MWh). For calculation purposes generation volume is assigned positive sign and consumption volume is assigned negative sign;

Efp t – final position of BRP in ISPt. Efp t reflects BRP’s declared scheduled net energy volume of commercial transactions on organised markets or between BRPs including any imbalance adjustment applied to that BRP, within a given ISPt (MWh). For calculation purposes generation volume is assigned positive sign and consumption volume is assigned negative sign;

44.  Final position (Efp t) is calculated as follows:

Efp t = Ep t + Ead j t , whereas

Ep t – position of BRP in ISPt. Efp t reflects BRP’s declared scheduled net energy volume of commercial transactions on organised markets or between BRPs within a given ISPt (MWh) in accordance with local balancing agreements;

Ead j t – imbalance adjustment reflects required changes in BRP’s final position Efp t to account for the balancing energy activated by order of the TSO and executed by a BSP within BRP’s imbalance area. Ead j t can be both positive and negative, depending on the direction balancing activation had (MWh).

45.  Each TSO shall establish processes for information exchange in regards to BRP’s final position and BRP’s allocated energy volume.

46.  The imbalance price is determined based on the direction of the Baltic CoBA imbalance position during particular ISP (exemplified in table 2). Imbalance price for ISPt (Pimb t) for each TSO’s respective imbalance area shall be calculated as follows:

46.1.   For ISPt where there is overall energy shortage within Baltic CoBA, the single imbalance price shall be calculated:

Pimb t = Pbal t + Ptc t , whereas

Pbal t – balancing energy price for ISPt (EUR/MWh). Pbal t shall be calculated as in accordance to Baltic balancing market rules;

Ptc t – targeted component for ISPt (EUR/MWh).

46.2.   For ISPt where there is overall energy shortage within Baltic CoBA, the single imbalance price shall be calculated:

Pimb t = Pbal t - Ptc t 

Table 2. Single imbalance price methodology

Imbalance position in ISPt Baltic CoBA shortage Baltic CoBA surplus
BRP shortage Pimb t = Pbal t + Ptc t Pimb t = Pbal t - Ptc t 
   BRP surplus

 

47.  Targeted component (Ptc t) is the same value for each ISP in accounting period and is calculated, taking into account all expenses and/or income from energy trade for not netted area control error (ACE) with open balance provider and other expenses and/or income in regards to CoBA operative activities occurred during accounting period, that are not included in balancing price. Targeted component shall be calculated as follows:

PTCT%20valem_0.png

Cbal t  – total costs (+)/ revenue (-) of activated balancing energy incurred by Baltic TSOs in the ISPt (EUR)

COBP t  – total costs (+)/ revenue (-) of energy delivered by/ to open balance provider in the ISPt (EUR);

N – total number of BRPs in CoBA;

n – particular BRP.

48.  After the end of an ISP all Baltic TSOs ensure that all information regarding activation orders is complete and publicly available on Baltic balancing market dashboard and/or Baltic TSOs websites and on the central ENTSO-E information transparency platform.

49.  As the result of an operational hour at least (but not limited to) following information is available at Baltic balancing market dashboard after ISP:

49.1.   current balancing state – preliminary Baltic ACE;

49.2.   the volumes of aggregated balancing energy bids – CMOLs;

49.3.   cross zonal capacities within the balancing timeframe;

49.4.   the volumes of aggregated activated balancing energy bids;

49.5.   balancing energy prices;

49.6.   imbalance volumes;

50.  All Baltic TSOs ensure that information relevant to imbalance price calculations is available on Baltic TSOs’ websites and/or Baltic balancing market dashboard. Imbalance prices for each ISPtshall be available no later than the 5th working day of the month following the according accounting period.

51.  After each accounting period Baltic TSOs shall publish monthly report containing aggregated financial data regarding balancing expenses and incomes.

 

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