New balancing capacity market
The Baltic electricity transmission system operators Litgrid, AST and Elering are creating a common balancing capacity market, which will start operating from 2025. According to the operators' calculations, the demand will reach up to 1512 MW of balancing capacity. The new market is being created in preparation for the synchronisation with the electricity networks of the continental Europe, after which the Baltic countries will act as a common frequency control block and order the balancing capacity services together.
The balancing capacity is required for the transmisison system operators to ensure that the electricity production is constantly in line with the consumption. As the Baltic countries plan to join the Continental European Synchronous Area, there is a great need for the balancing solutions - technical capabilities will be required to both increase and decrease electricity production or consumption.
In addition to the existing capacities, effective balancing services can be provided by:
- battery systems that can both use energy and supply it to the network as needed;
- existing and newly developed renewable energy power plants with the control systems adapted to balancing while reducing production;
- demand aggregators capable of adjusting electricity consumption.
The creation of a new market gives businesses time to prepare for the change and take advantage of the opportunities that open up: within two years, to invest and build facilities to sell their services later to ensure the stable operation of the electricity systems of the three countries.
Balancing capacity services in the common market of the Baltic countries will be purchased daily by auction, in 15-minute periods for day ahead. Starting in 2025, automatic and manual frequency restoration reserve (aFRR and mFRR) services will be purchased in the market, and after the synchronization with the Continental European networks - frequency containment reserve (FCR). These reserves differ in their response speed and duration - FCR must be activated within 30 seconds, aFRR within 5 minutes, and mFRR within 15 minutes.
Litgrid, AST and Elering have made calculations of what the demand for these services will be. Total required amount of balancing capacity in 2025 will reach up to 1512 MW, part of which will be ensured by the operators' available capacities, for example, energy storage, but 80 percent of this need will be bought in the market. After the synchronization, the need for a 25 MW FCR will contribute to this amount. The breakthrough of the renewable energy means that at least until 2031 this demand will continue to grow rapidly.
More information on the balancing capacity market:
The balancing capacity is required for the transmisison system operators to ensure that the electricity production is constantly in line with the consumption. As the Baltic countries plan to join the Continental European Synchronous Area, there is a great need for the balancing solutions - technical capabilities will be required to both increase and decrease electricity production or consumption.
In addition to the existing capacities, effective balancing services can be provided by:
- battery systems that can both use energy and supply it to the network as needed;
- existing and newly developed renewable energy power plants with the control systems adapted to balancing while reducing production;
- demand aggregators capable of adjusting electricity consumption.
The creation of a new market gives businesses time to prepare for the change and take advantage of the opportunities that open up: within two years, to invest and build facilities to sell their services later to ensure the stable operation of the electricity systems of the three countries.
Balancing capacity services in the common market of the Baltic countries will be purchased daily by auction, in 15-minute periods for day ahead. Starting in 2025, automatic and manual frequency restoration reserve (aFRR and mFRR) services will be purchased in the market, and after the synchronization with the Continental European networks - frequency containment reserve (FCR). These reserves differ in their response speed and duration - FCR must be activated within 30 seconds, aFRR within 5 minutes, and mFRR within 15 minutes.
Litgrid, AST and Elering have made calculations of what the demand for these services will be. Total required amount of balancing capacity in 2025 will reach up to 1512 MW, part of which will be ensured by the operators' available capacities, for example, energy storage, but 80 percent of this need will be bought in the market. After the synchronization, the need for a 25 MW FCR will contribute to this amount. The breakthrough of the renewable energy means that at least until 2031 this demand will continue to grow rapidly.
More information on the balancing capacity market:
