Balancing service is an ancillary service under which the balancing market participants, following the procedures laid out in the Ancillary service agreement, increase or reduce the electricity production (capacity) in their power generation facilities or provide a demand response service.
To facilitate equal opportunities to all Baltic balancing market participants and to comply with European Commission Electricity Balancing guidelines, Baltic transmission system operators agreed to organize a common balancing market. Common Baltic Balancing market started operating on 1st of January 2018. Read more about system balancing here.
Balancing service can be provided by a market participant whose portfolio includes power plants or demand facilities that are declared technically adequate for providing the balancing service by AS Augstsprieguma Tīkls on the basis of following requirements (in Latvian) – "Tehniskās un datu apmaiņas prasības rezervju nodrošināšanas vienībām". To become a balancing service provider, the market participant has to conclude Ancillary service agreement.
In addition, all Baltic balancing service providers are bound by the harmonized rules for the coordinated Baltic balancing area (from 1 January 2022):
The harmonized rules for the coordinated Baltic balancing area (until 1 January 2022):
The Ancillary service agreement is concluded with the market participant who wishes to provide the balancing service to the transmission system operator. The agreement includes provisions for the following aspects of cooperation:
- requirements regarding the ensurance of regulation capacity;
- procedures of energy exchange due to regulation activation, between transmission system operator and balancing service provider;
- settlement procedure;
- procedure for development, approval of standard terms and conditions for the provision of regulation Service under the Ancillary service agreement
Standard terms and conditions for the provision of regulation services under the Ancillary service agreement
According to the Ancillary service agreement, the Standard terms and conditions for the provision of regulation services under the Ancillary service agreement are binding to all balancing service providers. The terms and conditions include provisions for the following aspects of cooperation:
- general provisions – the objective, definitions of terms used in the agreement and the terms and conditions;
- the procedure of the submission of balancing energy product bids;
- balancing energy bid activation;
- balancing pricing mechanism;
- the procedure for determination and reconciliation of energy volumes delivered via bid activation.
Agreement template and the terms and conditions
The documents below have been most recently updated on 01.12.2017.
- Standard ancillary service agreement (LV);
- Standard terms and conditions for the provision of regulation services under the Ancillary service agreement (LV) (effective from 01.01.2018)
| Balance service provider | Registration number | EIC |
|---|---|---|
| "AJ Power", SIA | 40103780693 | 43X-T-AJP00010-1 |
| "Latvenergo", AS | 40003032949 | 43X-T-LATVENER-K |
| "Moduss Holding", SIA | 50203068851 | 43X-TG-MHO00044Y |
| "Sal-Energo", SIA | 48503010734 | 43X-TG-SAL00042O |
| "SPECTRUM BALTIC", SIA | 40103879426 | 43X-TG-SB000036A |
| "UŽAVA ENERGO", SIA | 41203067181 | 43X-TG-UEN00046Q |