Balancing Energy in Europe:
Basics & European Guideline
The Balancing Energy process is crucial for TSOs in ensuring a safe and steady supply of electricity through maintaining a stable frequency in electricity grids. At the same time, it is crucial for energy suppliers to keep imbalance costs low.
Balancing deviations of production and consumption must be addressed close to real time. Over the years, many countries have developed systems and processes for TSOs and producers allowing to act in restoring the desired system frequency. While not all countries have the same processes, some standards have developed, such as FCR, aFRR and mFRR.
In order to increase efficiency, foster competition and integrate different markets, the European Union has developed a guideline, aiming at harmonizing procurement, products, and settlements. Consequently, European TSOs are challenged to develop European platforms for the balancing energy process. At the same time energy suppliers managing balancing responsibility and providing balancing energy must adopt to this pan-European harmonization process. Especially systems and trading processes must be aligned and optimized to keep imbalance costs low. This first Factsheet introduces some basic facts about balancing energy and presents an overview of the European Guideline on Electricity Balancing. In some upcoming posts, we shed light on all four European platforms for harmonizing Electricity Balancing and afterwards present the changes and consequences for selected countries.