Trade in imbalance energy
The TSO is responsible for maintaining the system balance between generation and consumption of electricity in a control area. Balancing energy is electricity generated/produced not according to electricity consumption or generation schedules compiled in advance. Participants in the electricity market having concluded an agreement on sale and purchase of balancing power with the TSO become balance responsible party.
Contact for balancing agreement via [email protected]
Publication of the Indicative Reserve Assurance Component
According to the standard conditions of the Imbalance Settlement Agreement, starting from 1 January 2026, a Reserve Assurance Component will be introduced. This component, payable by Balance Responsible Parties (BRPs), is intended to compensate the Transmission System Operator (TSO) for the actual costs incurred in ensuring balancing capacities.
A gradual implementation of the TSO’s operational cost coverage for the acquisition of balancing capacity services will be applied according to the following coefficients:
Stage I: 1 January 2026 – 31 December 2026 – reserve assurance coefficient = 0.3
Stage II: 1 January 2027 – 31 December 2027 – reserve assurance coefficient = 0.6
Stage III: from 1 January 2028 – reserve assurance coefficient = 1.0
The Reserve Assurance Component consists of two parts:
The Reserve Assurance Component based on the total BRP imbalance energy quantity (RDK_D), and
The Reserve Assurance Component based on the BRP’s actual consumption portfolio (RDK_P).
Under the planned amendments to the Imbalance Settlement Agreement, the following calculation methodology is defined:
1. Reserve Assurance Component Based on BRP Imbalance Energy Quantity (RDK_D)
The component RDK_D is calculated as 50% of the TSO’s actual and forecast balancing capacity assurance costs (EUR), attributable to the BRPs for the previous market balance period, divided by the total purchased and sold imbalance energy (MWh) for the same month of the previous year’s market balance period, and multiplied by the reserve assurance coefficient, according to formula (14):
RDK_D = n × (0.5 × BVS_BP + kor) / Σ_BP(LT,k) (14)
2. Reserve Assurance Component Based on BRP Actual Consumption Portfolio (RDK_P)
The component RDK_P is calculated as 50% of the TSO’s actual and forecast balancing capacity assurance costs (EUR), attributable to the BRPs for the previous market balance period, divided by the BRP’s actual consumption portfolio (MWh) for the same month of the previous year’s market balance period, and multiplied by the reserve assurance coefficient, according to formula (15).
This excludes the amount of electricity consumed for charging by storage facilities connected to the transmission network, which is later returned to the transmission network.
RDK_P = n × (0.5 × BVS_BP + kor) / Σ_PF(LT,k) (15)
Where:
RDK_D – Reserve assurance component based on the BRP’s total imbalance energy, covering TSO’s balancing capacity assurance costs for acquiring balancing capacity services, EUR/MWh.
RDK_P – Reserve assurance component based on the BRP’s actual consumption portfolio, covering TSO’s balancing capacity assurance costs for acquiring balancing capacity services, EUR/MWh.
n – Reserve assurance coefficient determining what proportion of the TSO’s operational costs for acquiring balancing capacity services must be covered by the BRPs. The coefficient changes over time:
1 Jan 2026 – 31 Dec 2026: 0.3
1 Jan 2027 – 31 Dec 2027: 0.6
From 1 Jan 2028: 1.0
BVS_BP – TSO’s actual and forecast balancing capacity assurance costs (EUR), i.e., costs for the previous balancing period calculated using actual data available for that period, and forecasted data (equal to the average daily actual cost of the available days) for the remaining days. These costs include:
100% of all TSO actual aFRR balancing capacity procurement costs; and 80% of all TSO actual mFRR balancing capacity procurement costs.
These costs arise from the procurement of balancing capacity services according to Article 11 of the Capacity Rules and from congestion revenue collection in accordance with Article 11(1) and Article 11(3) of the Interzonal Capacity Allocation Methodology.
BP_(LT,k) – Total imbalance energy purchased from and sold to BRP k in the Lithuanian zone during the same month of the previous year’s market balance period, MWh.
PF_(LT,k) – BRP k’s portfolio, i.e., actual consumption during the same month of the previous year’s market balance period, excluding electricity used for charging by storage facilities connected to the transmission grid that is later returned to the grid, MWh.
k – individual BRP in the Lithuanian zone.
K – total number of BRPs in the Lithuanian zone.
kor – the difference between the forecasted balancing capacity assurance costs for the previous (t–1) market balance period and the actual balancing capacity assurance costs incurred for that period, considered when determining the reserve assurance component for the next (t+1) balance period.
Indicative (i.e., not used for any settlements with Balance Responsible Parties) Reserve Assurance Component values:
|
Period
|
RDKD (consumption), Eur/MWh
|
RDKP(imbalance), Eur/MWh
|
|
2025 October
|
1,13
|
9,25
|
|
2026 prognosis
|
0,89
|
7,01
|
According to Imbalance Settlement Agremenet 2 Annex p. 4.5.4 “The neutrality component shall be set at the same level from the date of joining MARI for the entire future market balance period no later than 5 (five) working days before the start of the market balance period. The neutrality component is made public on the TSO website.
According to the point 4.5.5 “The neutrality component for the market balance period t+1 is determined according to the following formula, using actual data from previous market balance periods, i.e. by applying a correction defined as the difference between the neutrality components calculated for the previous market balance period (t-1) and the one calculated the day before that (t-2), and then adding the correction to the neutrality component calculated for the previous market balance period (t-1)”.
The published neutrality component is below:
|
Year
|
Month
|
Calculation of Neutrality Component
|
Preliminary neutrality component (NK), Eur/MWh
|
Factual neutrality component (NKf), Eur/MWh
|
|
2024
|
November
|
NKnov = (NKfsept-NKfaug)+NKfsept = (-12,89-(-1,05))+(-12,89)
|
-24,73
|
17,13
|
|
2024
|
December
|
NKdec = (NKfoct-NKfsept)+NKfoct = (-12,20-(-12,89))+(-12,20)= -11,51
|
-11,51
|
9,82
|
|
2025
|
January
|
NKjan= (NKfnov-NKfoct)+NKfnov = (-24,73-(-12,20))+(-24,73)= -37,26
|
-37,26
|
21,69
|
|
2025
|
February
|
NKFeb= (NKfdec-NKfnov)+NKfdec = (9,82-17,13)+9,82= 2,51
|
2,51
|
Will be published after finalization of accounting period
|
|
2025
|
March
|
NKMar= (NKfjan-NKfdec)+NKfjan = (21,69-9,82)+21,69= 33,56
|
33,56
|
Will be published after finalization of accounting period
|
Please note that imbalance prices which are used for calculation of imbalances are currently hourly. From 1st of February 2025 imbalance prices will be quarter hourly and accordingly imbalance settlement will be processed in 15 min resolution.
Imbalance costs
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 IH | |
|
Actual costs attributable to trade in imbalance energy, €
|
325 777
|
418 641
|
476 270
|
136 832
|
117 929
|
146 442 | 170 203 | 91 917 |
|
Imbalance energy trade administration fee, €/MWh
|
0.55
|
0.50
|
0.46
|
0.58
|
0.55
|
-0.34 | -0.25 | 0.27 |
Imbalance energy trade administration fee in 2025 0.27 €/MWh.
Imbalance energy trade administration fee in 2026 0.58 €/MWh.
More information about procedure of imbalance energy pricing can be found in standard terms and conditions of Imbalance purchase - sale contract annex No. 2 "Imbalance settlement rules".
Imbalance purchase - sales imbalance contract. Effective from 20th March 2024
How to become a balance responsible party
Application to conclude the balancing agreement
Methodology of baseline
1 Annex. BSP schedule template
2 Annex. Technical requirements for scheduled data and schedule template explanation
Balancing responsible parties - BRP
How to become a balance responsible party
Application to conclude the balancing agreement
Methodology of baseline
1 Annex. BSP schedule template
2 Annex. Technical requirements for scheduled data and schedule template explanation
Balancing responsible parties - BRP
