Draft guidelines for cross-border electricity balancing

ERGEG draft guidelines (15 pages, Microsoft Word) with proposed recommendations on good practice for the integration of electricity "balancing markets". The guidelines are at the level of broad principles and appear to rely on an assumption that a transmission system operator (rather than an independent pool) is responsible for tasks such as to "solve imbalance in the most efficient manner", and that this is achieved by accepting "bids" in a "balancing market" in merit order and by operating a "balancing settlement" regime.

Three cross-border trade models are oulined: direct participation, where participants connected to one network "bid" into the "balancing market" of the other; "TSO to TSO" where cross-border "bids" and cross-border capacity are managed by transmission system operators rather than by users; and an "integrated balancing market with a common merit order and a common balancing settlement".

Responses by Wednesday 3 August 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, ERGEG.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon