|Imbalance (Electricity Balancing Market)|
|European Union Electricity Market Glossary|
'Imbalance' in the EU Internal Electricity Market most commonly means deviations between generation, consumption and commercial transactions of a balance responsible parties (BRPs) within a given imbalance settlement period.
More formal definition of an 'imbalance' is an energy volume calculated for a BRP and representing the difference between the allocated volume attributed to that BRP, and the final position of that BRP and any imbalance adjustment applied to that BRP, within a given imbalance settlement period (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing, Article 2(8)).
Imbalances are settled by Transmission System Operators (TSOs).
ACER Opinion No 07/2014 of 21 March 2014 on ENTSO-E Network Code on Electricity Balancing underlines only imbalances after the closure of the intraday market should be balanced by TSOs within the balancing market timeframe.
All withdrawals and injections must be covered by a BRP, without any exemptions (ENTSO-E Supporting Document for the Network Code on Electricity Balancing of 6 August 2014).
Consequently, also injections from renewable and intermittent resources must be embraced with imbalance settlement.
Single exception mentioned are withdrawals and injections from interconnectors, which cannot be covered by BRP.
Article 54(6) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing stipulates that an imbalance shall indicate the size and the direction of the settlement transaction between the balance responsible party and the TSO; an imbalance can have alternatively:
(a) a negative sign, indicating a balance responsible party's shortage;
(b) a positive sign, indicating a balance responsible party's surplus.
According to Article 54(5) of the Commission Regulation (EU) 2017/2195 allocated volume shall not be calculated for a balance responsible party which does not cover injections or withdrawals - i.e. for pure traders trading in virtual points.
The above-mentioned ENTSO-E Supporting Document underlines that the imbalance has a dual geographical aspect: the area in which an imbalance is calculated and the area in which an imbalance price is calculated.
For most TSOs their responsibility area coincides with:
- one scheduling area and
- one bidding zone.
In these cases the imbalance and imbalance price relate to this bidding zone.
For a number of TSO's, however, there are differences between bidding zone and/or responsibility area and/or scheduling area.
In those cases the TSO may have to assign imbalance price areas and imbalance area that may not coincide with bidding zones.
Article 54(2) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing stipulates that the imbalance area shall be equal to the scheduling area, except in case of a central dispatching model where imbalance area may constitute a part of scheduling area.
BRPs will be entitled to challenge its imbalance calculation.
Any curtailments of commercial transactions on all timescales on organised markets or between BRPs, as performed by a TSO under abnormal operating conditions will also be an adjustment in the imbalance calculation.
In order to deal with imbalances, TSOs have three types of balancing resources available, which are part of a sequential process based on successive layers of control. These are:
- frequency restoration reserve (FRR), which can be automatically (aFRR) or manually activated (mFRR), and
The balancing services associated with these resources can be traded in the market in the form of balancing capacity or balancing energy (ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2014, November 2015, p. 205).
TSOs are required to publish, as close to real time as possible but with a delay after delivery of no more than 30 minutes, the current system balance of their scheduling areas, the estimated imbalance prices and the estimated balancing energy prices (Article 6(13) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity).
Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity, Article 6(13), Recital 15
Electricity Balancing Network Code (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing), Article 2(8)
Commission Regulation 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council, Recital 11
|Last Updated on Sunday, 09 February 2020 16:16|