‘TSO-BSP model’ means a model for the exchange of balancing services where the balancing service provider (BSP) provides balancing services directly to the contracting TSO, which then provides these balancing services to the requesting TSO (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing, Article 2(43)).
Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing
TSO-BSP model
Article 35
Exchange of balancing services
1. Two or more TSOs may at their initiative or at the request of their relevant regulatory authorities in accordance with Article 37 of Directive 2009/72/EC develop a proposal for the application of the TSO-BSP model.
2. The proposal for application of a TSO-BSP model shall include:
(a) a cost-benefit analysis performed pursuant to Article 61 that identifies the efficiencies of applying the TSO-BSP model for at least the scheduling area or scheduling areas of the TSOs involved;
(b) the requested application period;
(c) a description of the methodology for ensuring sufficient cross-zonal capacity in accordance with Article 33(6).
3. Where the TSO-BSP model applies, the respective TSOs and balancing service providers may be exempted from the application of the requirements in Article 16( 2), Article 16( 4), Article 16( 5) and Article 29( 9) for the relevant processes.
4. Where the TSO-BSP model applies, the involved TSOs shall agree on the technical and contractual requirements and on information exchanges for the activation of balancing energy bids. The contracting TSO and the balancing service provider shall establish contractual arrangements based on the TSO-BSP model.
5. The TSO-BSP model for the exchange of balancing energy from frequency restoration reserves may be applied only where the TSO-BSP model is also applied for the exchange of balancing capacity for frequency restoration reserves.
6. The TSO-BSP model for the exchange of balancing energy from replacement reserves may be applied where the TSO-BSP model is applied for the exchange of balancing capacity for replacement reserves or where one of the two involved TSOs does not operate the reserve replacement process as part of the load-frequency-control structure pursuant to Part IV of Regulation (EU) 2017/1485.
7. By four years after entry into force of this Regulation, all exchanges of balancing capacity shall be based on the TSO-TSO model. This requirement shall not apply to the TSO-BSP model for replacement reserves if one of the two involved TSOs does not operate the reserve replacement process as part of the load-frequency-control structure pursuant to Part IV of Regulation (EU) 2017/1485.
Under the TSO-BSP model a BSP has a contractual relationship with another Transmission System Operator (TSO) than its connecting TSO.
Currently there are two role models related to cross-border procurement of balancing capacity and balancing energy:
- a TSO-BSP model, and
- a TSO-TSO model.
It was decided that the European integration model for a future EU-wide balancing market should be based on a TSO-TSO model, where TSOs covers all cross-border processes and obligations (if not delegated to a third party).
The said Commission Regulation (EU) 2017/2195 of 23 November 2017 envisions that:
- the TSO-BSP model for the exchange of balancing energy from frequency restoration reserve (FRR) may be applied only where the TSO-BSP model is also applied for the exchange of balancing capacity for frequency restoration reserves;
- the TSO-BSP model for the exchange of balancing energy from replacement reserve (RR) may be applied where the TSO-BSP model is applied for the exchange of balancing capacity for replacement reserves or where one of the two involved TSOs does not operate the reserve replacement process as part of the load-frequency-control structure;
- by four years after entry into force of the Regulation (i.e. by 18 December 2021) all exchanges of balancing capacity shall be based on the TSO-TSO model (this requirement shall not apply to the TSO-BSP model for replacement reserves if one of the two involved TSOs does not operate the reserve replacement process as part of the load-frequency-control structure).
According to Article 35 of the said Commission Regulation (EU) 2017/2195 of 23 November 2017 where the TSO-BSP model applies, the respective TSOs and balancing service providers may be exempted for the relevant processes from the application of the following provisions of the said Regulation:
- Article 16(2) - “each balancing service provider shall submit to the connecting TSO its balancing capacity bids that affect one or more balance responsible parties”;
- Article 16(4) - “each balancing service provider with a contract for balancing capacity shall submit to its connecting TSO the balancing energy bids or integrated scheduling process bids corresponding to the volume, products, and other requirements set out in the balancing capacity contract”;
- Article 16(5) - “any balancing service provider shall have the right to submit to its connecting TSO the balancing energy bids from standard products or specific products or integrated scheduling process bids for which it has passed the prequalification process” and
- Article 29(9), stipulating that each connecting TSO shall submit, prior to the TSO energy bid submission gate closure time, all balancing energy bids received from balancing service providers to the activation optimisation function, the connecting TSOs shall not modify or withhold balancing energy bids, save for some exceptions.
Use of cross-zonal capacity by BSPs in the TSO-BSP model
According to Article 43 of the The said Commission Regulation (EU) 2017/2195 of 23 November 2017:
- BSPs which have a contract for balancing capacity with a TSO on the basis of a TSO-BSP model have the right to use cross-zonal capacity for the exchange of balancing capacity if they are holders of physical transmission rights;
- BSPs which use cross-zonal capacity for the exchange of balancing capacity on the basis of a TSO-BSP model nominate their physical transmission rights for the exchange of balancing capacity to the concerned TSOs (such physical transmission rights provide the right to their holders to nominate the exchange of balancing energy to the concerned TSOs and are therefore excluded from the application of the UIOSI principle);
- cross-zonal capacity allocated for the exchange of balancing capacity in accordance with the above rules is included as already allocated cross-zonal capacity in the calculations of cross-zonal capacity.
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Documentation |
Network Code on Electricity Balancing (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing - NC EB), Article 2(43), Article 35
Supporting Document for the Network Code on Electricity Balancing of 6 August 2014 p. 55
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