|European Union Electricity Market Glossary|
According to Article 3(2)(128) of the Network Code on System Operation the 'imbalance netting process' is a process agreed between Transmission System Operators (TSOs) that allows avoiding the simultaneous activation of Frequency Restoration Reserve (FRR) in opposite directions, taking into account the respective FRCEs as well as the activated FRR and by correcting the input of the involved FRPs accordingly.
In the above definition:
- ‘frequency restoration control error’ or ‘FRCE’ means the control error for the FRP which is equal to the ACE of a LFC area or equal to the frequency deviation where the LFC area geographically corresponds to the synchronous area (Article 3(2)(43) of the Network Code on System Operation),
- ‘frequency restoration process’ or ‘FRP’ means a process that aims at restoring frequency to the nominal frequency and, for synchronous areas consisting of more than one LFC area, a process that aims at restoring the power balance to the scheduled value (Article 3(2)(42) of the Network Code on System Operation),
- ‘area control error’ or ‘ACE’ means the sum of the power control error (‘ΔP’), that is the real-time difference between the measured actual real time power interchange value (‘P’) and the control program (‘P0’) of a specific LFC area or LFC block and the frequency control error (‘K*Δf’), that is the product of the K-factor and the frequency deviation of that specific LFC area or LFC block, where the area control error equals ΔP+K*Δf (Article 3(2)(19) of the Network Code on System Operation).
Agency for the Cooperation of Energy Regulators (ACER) in its Recommendation No 03/2015 of 20 July 2015 on the Network Code on Electricity Balancing proposed that the Regional Integration Model (RIM) for the imbalance netting process should be composed of single Coordinated Balancing Area (CoBA) covering the whole Continental Europe synchronous area.
This proposal considers that imbalance netting in other synchronous areas is already implicitly implemented.
The Continental-wide coverage should ensure the necessary consistency between CoBA proposed for automatic Frequency Restoration Reserve (FRR) and manual FRR and the CoBA for imbalance netting.
An increased utilisation of imbalance netting has been recently observed in Europe.
Imbalance netting currently covers an important share of the needs of balancing energy in several European markets.
Pursuant to data referred to in the ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2014, November 2015 (p. 213), in the Netherlands imbalance netting avoided almost 50% of the electricity system's needs of balancing energy in 2014 (the same figure is quoted by the ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity Markets in 2015, September 2016 (p. 59) for the year 2015).
In the Nordic region, where balancing energy markets are currently integrated, imbalance netting across borders is currently used to balance the electricity systems.
However, it should be noted that the Nordic electricity systems are balanced as one single responsibility area and, the cross-border exchange of balancing energy cannot be easily disentangled from imbalance netting across borders and from system imbalance at the (national) TSOs level.
Annual Report of the ACER and CEER on the Results of Monitoring the Internal Electricity and Gas Markets in 2016 (Electricity Wholesale Markets Volume) published in October 2017 confirms (p. 54) that in 2016 the utilisation of imbalance netting continued to be the most successfully applied tool to exchange balancing services across borders.
In 2016 the imbalance netting covered an important share of the needs of balancing energy in several European markets:
- in Latvia, the Netherlands and Germany, imbalance netting avoided 84%, 57% and 57%, respectively, of the electricity system’s balancing energy needs in 2016,
The application of imbalance netting and exchange of balancing energy was estimated in the said Report of October 2017 at approximately 19% of their potential in 2016 for a selection of 15 borders where sufficient information was available.
Although this value indicated a significant improvement (almost doubled) compared to the previous year, it was still relatively low when compared to the level of efficiency recorded in the preceding day-ahead (86%) and intraday (50%) timeframes in 2016.
Article 15(2) 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) stipulates that when cross-zonal capacity is available after the intraday cross-zonal gate closure time, TSOs must use the cross-zonal capacity for the exchange of balancing energy or for operating the imbalance netting process.
European platform for the imbalance netting process
Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing in Article 22 envisages the procedure for establishing the European platform for imbalance netting process - see box below.
Network Code on System Operation (Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation), Article 3(2)(128), Article 146
Network Code on Electricity Balancing (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing - NC EB), Articles 22
ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Gas Markets in 2016, Electricity Wholesale Markets Volume, October 2017, p. 54
ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity Markets in 2015, September 2016
ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2014, November 2015, p. 213
|Last Updated on Saturday, 13 January 2018 16:23|