Balancing – is an organized process that ensures balance in real time between electricity consumption and production in the electricity system.
Imbalance energy – energy that is bought by the Transmission System Operator (TSO) from a trader (user) or sold to the trader (user) in order to ensure the power balance between schedule and real consumption during the trade interval. TSO sells electricity to the trader in order to cover a deficit in electricity sales, or purchases or buys electricity from the trader's surplus of energy during the trade interval.
Balancing Service –imbalance energy purchase and sales, and settlement preparation.
In Latvia balancing is ensured by TSO using its existing capacity reserves in the electricity system and concluded agreements with Estonian (Elering) and Lithuanian (Litgrid) TSO, as well as with external balancing trader. Concluded agreements have following principles and conditions:
- Electricity surplus/shortfall (hereinafter – imbalance) of the Estonian, Latvian and Lithuanian electricity system which can be eliminated (compensated) within the Baltic coordinated balancing area (hereinafter, according to the terminology NC - Baltic CoBA) (Netted Imbalance), Baltic TSOs mutually buy/sell;
- Part of imbalance that cannot be eliminated (compensated) in the Baltic CoBA within with buying/selling imbalance electricity between Baltic TSOs (Not netted imbalance), Baltic TSOs jointly purchased from/sold to electricity balancing service provider (hereinafter – OBP) Russian merchant OAO “INTER RAO JES” delegated company AB”INTER RAO Lietuva”;
- Balancing energy between the Baltic TSOs (Netted imbalance) in the trading interval is purchased/sold on the arithmetic mean of the prices between Nord Pool Spot (hereinafter – NPS) power exchange prices in Estonia, Latvia and Lithuanian price areas in the corresponding trading interval;
- Balancing energy (Not Netted imbalance) trading in the trading interval is purchased from/sold to OBP on the price set by OBP in the corresponding trading interval. Balancing energy (Not Netted Imbalance) trading prices are based on the Russian electricity market price, infrastructure payment, capacity payment, transit payment and other OBP justified costs;
- Based on mutual acts of the Baltic CoBA the price calculation and settlement of balancing energy (Not Netted Imbalance) with OBP in rotation order is done by one of Baltic TSOs;
“Augstsprieguma tīkls” AS is the balancing service provider for electricity consumers, as well as to electricity producers and traders. “Augstsprieguma tīkls” AS concludes an agreement with every consumer or producer, that is connected to the transmission system, as well as with every electricity trader, who performs cross-border trading or providing balancing services to producers or consumers, that are market participants, for providing balancing service to ensure equality of energy consumed and fed-in into the transmission system at any time interval. According to Network Code, TSO performs imbalance price calculations in a transparent and non-discriminatory way. Consumers’ and producers’, who are market participants, as well as traders’ duty is to pay for balancing service, in the volume that is estimated on the basis of TSO data.
According to the Network Code, the monthly imbalance prices are calculated according to the imbalance energy price calculation methodology and is published for each trading interval no later than 15th date of next month.