|Imbalance Settlement Period (Electricity Balancing Market)|
|European Union Electricity Market Glossary|
Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing defines a imbalance settlement period as the time unit for which the imbalance of the Balance Responsible Parties is calculated (Article 2(10).
The so-called 'Winter Energy Package' uses the same definition (Article 2(2)(n) of the Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD)).
The length of the imbalance settlement period impacts on:
- imbalance pricing methodology (i.e. single or dual);
- balancing energy products (e.g. scheduled, pure energy products or only direct activated power products); and
- volume calculation (request or metered).
Pursuant to the draft ENTSO-E Electricity Balancing Network Code (NC EB) the harmonisation of the imbalance settlement period within and between synchronous areas was envisioned no later than two years after the NC EB entry into force.
The stepwise approach was envisioned through a proposal of all Transmission System Operators (TSOs) submitted for approval to all national regulatory authorities (NRAs) based on a cost-benefit analysis.
The draft NC EB imposed the requirement that the imbalance settlement period must not exceed 30 minutes, however, each TSO would have the right to develop a proposal that deviates from the decision on the harmonisation of imbalance settlement periods, in such event the concerned TSO must perform a specific cost-benefit analysis.
The Agency for the Cooperation of Energy Regulators (ACER) proposed some amendments to the ENTSO-E vision of the imbalance settlement period.
ACER's Recommendation No 03/2015 of 20 July 2015 on the Network Code on Electricity Balancing called NC EB explicitly defines the length of the of the harmonised imbalance settlement period.
ACER underlined the fact the need for shorter imbalance settlement period has been defined by the Framework Guidelines (i.e. no longer 30 minutes).
Hence, the ACER was of the opinion that an harmonised duration equal to 15 minutes is a natural choice for the imbalance settlement period, since 30 minutes, was used, at the date of Recommendation's issuance, only by three Members States, whereas 15 minutes was used in eight Member States.
ACER proposed such harmonised settlement period should be applied by 1 July 2019.
According to Article 7(4) of the said Proposal for a Regulation on the internal market for electricity of 30 November 2016, by 1 January 2025 the imbalance settlement period must be 15 minutes in all control areas.
Electricity Balancing Network Code (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing), Article 2(10)
|Last Updated on Sunday, 17 December 2017 14:47|