Balancing Energy in Europe
The European target model for cross-border electricity balancing aims at harmonizing all balancing processes. This time, we present the third platform, enabling the optimization of automatic frequency restoration reserves (aFRR) activations. It is called Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation, or short PICASSO.
The project was launched in July 2017 and the planned Go-Live at the beginning of 2022 is approaching quickly. PICASSO allows the exchange and optimized activations of a standard product for aFRR (or the ‘secondary product for reserve power) across Europe.
The introduction of PICASSO has considerable implications for all market participants. TSOs might benefit from a more liquid market with more aFRR providers, but have to incorporate the cross-border optimization into their processes. Meanwhile, balancing energy providers and traders are not directly connected to the platform, but have to adapt to resulting changes, such as new bid characteristics, increased liquidity and international competitors.
To all energy traders providing and trading balancing energy: Are you aware of the future changes with regards to aFRR when your local TSO connects to PICASSO? New strategies for offering flexibility have to be developed and implemented given the considerable changes accompanied.