Balancing Energy Platforms
Implementation of methodologies related to the establishment of EU's balancing platforms
Implementation frameworks for balancing platforms
The Electricity Balancing (EB) Regulation governs the establishment of three different balancing platforms by requiring Transmission System Operators (TSOs) to propose implementation frameworks.
Those frameworks include:
- governance structure
- processes for operating the platform
- timeline for its development.
| RR platform | mFRR platform (MARI) | aFRR platform (PICASSO) | Imbalance Netting (IN) process platform | |
| What is it about? | Each TSO using balancing energy from replacement reserves (RR) to balance its system can use this platform to activate bids from across Europe (instead of activating only bids from service providers connecting to its system). Therefore, the platform allows TSOs to exchange balancing energy from replacement reserves with neighbouring TSOs. | Each TSO using balancing energy from frequency restoration reserves with manual activation (mFRR) for balancing its system can use this platform to activate bids from across Europe (instead of activating only bids from balancing service providers connecting to its system). Therefore, the platform allows TSOs to exchange balancing energy from frequency restoration reserves with manual activation with its neighbouring TSOs. | Each TSO using balancing energy from frequency restoration reserves with automatic activation (aFRR) for balancing its system can use this platform to activate bids from across Europe (instead of activating only bids from balancing service providers connecting to its system). Therefore, the platform allows TSOs to exchange balancing energy from frequency restoration reserves with automatic activation with its neighbouring TSOs. | Through this platform, TSOs avoid the simultaneous activation of frequency restoration reserves in opposite directions by netting their demand for balancing energy from frequency restoration reserves.
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| Legal basis | Article 19(1) of the EB Regulation | Article 20(1) of the EB Regulation | Article 21(1) of the EB Regulation | Article 22(1) of the EB Regulation |
| Responsibility | all TSOs performing the reserve replacement (RR) process (pursuant to Part IV of Commission Regulation (EU) 2017/1485) | all TSOs | all TSOs | all TSOs |
| Current status | The implementation framework was approved by the relevant regulatory authorities in August 2021 and amended in 2023. | The implementation framework was approved by ACER in January 2020 and amended in September 2022. | The implementation framework was approved by ACER in January 2020 and amended in September 2022 and July 2024. | The implementation framework was approved by ACER in June 2020 and amended in September 2022. |
| Implementation | The RR platform has been operational since January 2020 but is expected to be discontinued by the end of 2025. Participating TSOs have assessed that regulatory requirements (such as 15-minute settlement periods and a 30-minute cross-zonal gate closure) would make the RR process increasingly similar to the mFRR one, significantly limiting the benefits of its continuation. | Implementation deadline: July 2022. The platform is operational and several TSOs are connected. | Implementation deadline: July 2022. The platform is operational and several TSOs are connected | The platform has been operational since June 2021 and all TSOs are using it. |
| Related Documents | Latest approved implementation framework for the mFRR platform. | Latest approved implementation framework for the aFRR platform. | Latest approved implementation framework for the IN platform. |
Find out more on the implementation of the European balancing platforms on ENTSO-E's website.
Activation purposes of balancing energy bids
What is it about?
Transmission System Operators (TSOs) receive standard product balancing energy bids from service providers, which they forward to the European platforms for exchanging balancing energy.
These balancing energy bids shape the common merit order list (ranking of available bids) for each platform and can be activated by the respective platform to satisfy TSOs’ balancing energy demand. Each TSO can activate any of these bids for satisfying system constraints.
Legal basis: Article 29(3) of the EB Regulation
Responsibility: all TSOs
Current status: The methodology was approved by ACER in June 2020.
Implementation: Each TSO should implement this classification methodology, once they join the respective European platform.
Documentation on the approval process of this methodology.
Pricing of balancing energy and cross-zonal capacity
What is it about?
TSOs receive standard product balancing energy bids from service providers, which they forward to the European platforms for exchanging balancing energy. Each platform activates the most cost-efficient balancing energy bids to satisfy TSOs’ balancing energy demand. The balancing energy price is set according to the marginal pricing principle. These balancing energy prices represent also a reference for pricing the cross-zonal capacity used in the balancing energy’s exchange by each platform.
Legal basis: Article 30(1) of the EB Regulation
Responsibility: all TSOs
Current status: The methodology was approved by ACER in January 2020.
Implementation: Each TSO should implement this methodology once they join the respective European platform for the exchange of balancing energy. The European platform for the exchange of balancing energy form replacement reserves applied a different pricing methodology (as it became operation before the ACER Decision 01/2020). However, the TSOs using this platform should implement this methodology by 1st July 2022.
Read more on the latest approved methodology for pricing balancing energy.
Documentation on the approval process of this methodology.
Cross-zonal capacity calculation methodology
What is it about?
The capacity calculation methodology describes how TSOs calculate the available cross-zonal capacity for the exchange of balancing energy or for operating the imbalance netting process within the balancing timeframe. The methodology complies with network security standards.
The process consists of the following steps:
- TSOs define capacity calculation inputs – i.e. common grid models
- The inputs are used by regional coordination centres to calculate the available amount of cross-zonal capacities either by using a flow-based or coordinated Net Transmission Capacity (NTC) approach, depending on the respective region.
Legal basis: Article 37(3) of the EB Regulation
Responsibility: all TSOs in each capacity calculation region
Current status: Proposals for this methodology need to be submitted from the TSOs of each capacity calculation region by December 2022.
Implementation: No implementation timeline available yet.