Activation Optimisation Function
European Union Electricity Market Glossary


The Activation Optimisation Function is central to the process of the activation of Balancing Energy.


In order to enable the cross-border Exchange of Balancing Energy, the activation of Balancing Energy has to be coordinated by a common function.


This function, known as the Activation Optimisation Function, determines the most efficient activation of the incoming balancing request while respecting some capacity and operational restrictions.


The Activation Optimisation Function is responsible for using the algorithm which is commonly developed by the TSOs.


The activation itself is done by the controlling units of the respective TSOs. This activation is automatically done for FRR automatic or manually done for both FRR manual and RR.


In order to implement this activation process robust communication procedures are required between the common function and the controlling units/operators.


The steps involved in the activation of Balancing Energy are as follows:

1. The Requesting TSOs send their requirements to the Activation Optimisation Function.

2. After the Balancing Energy Gate Closure Time, the Activation Optimisation Function calculates the most efficient activation taking the following into account:

(a) Common Merit Order List containing all Balancing Energy bids,

(b) Available Cross Zonal Capacity either available after Intraday or reserved previously,

(c) Network stability constraints,

(d) Balancing requirements of the TSOs,

(e) Imbalance Netting potential.

3. Activation Optimisation Function sends the individual activation amounts (as a correction signal) to each responsible TSO (Connecting TSO).

4. The Connecting TSO activates the successful Balancing Energy bids (via a phone call or automatically by activation system such as a MOL-Server or local controller).

5. Balancing Energy is exchanged through commercial schedules or virtual tie-lines.

6. Balancing Energy is settled between the providers and the TSOs involved.


Source: Supporting Document for the Network Code on Electricity Balancing of 6 August 2014, p. 22-23).



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Last Updated on Thursday, 04 February 2016 22:34


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