News & events

2016-10-31

Baltic TSOs launch a coordinated exchange of balancing energy

As of November 1st, the transmission system operators (TSOs) of Estonia, Latvia and Lithuania introduce standard manually activated frequency restoration reserves (mFRR) products. Elering, Augstsprieguma tīkls and Litgrid signed the agreement enabling effective exchange of Baltic balancing energy.
 
In the Baltic countries the standard mFRR products will be used to control power balancing in normal and emergency situations. Until now the Baltic balancing energy market participants provided balancing services under bilateral agreements with their local TSOs. The information about balancing offers was exchanged between the TSOs according to their bilateral agreements, too. From November 1st, all bids of the standard mFRR products will be available for activation by each of the Baltic TSO from a single Baltic common merit order list. When the common balancing market starts fully functioning in 2018, balancing energy procurement shall be optimised for balancing of the whole Baltic area and the cheapest available offers will be selected first. 
 
“This is a huge step and important milestone to advance common balancing power systems activities of the three Baltic countries,” says Aistė Krasauskienė, Head of Market Development Division at Litgrid. 
 
The principles of the standard mFRR product were introduced to the market participants during a six week public consultation this summer. Their comments were considered by the Baltic TSOs before the agreement was finalised. 
 
The introduction of standard mFRR products and advancing Baltic TSOs balancing cooperation is a big step towards the common Baltic balancing energy market. It will benefit market participants with expanded balancing services market and at the same time foster cross-border competition increasing efficiency and cost-savings and maintaining the high degree operational security of the Baltic power systems. The next goal for the Baltic TSOs is to extend this cooperation with the Nordic TSOs and to integrate balancing of the whole Baltic Sea area.  
 
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