In 2018 the regional electricity market will become even more competitive

[[date]]

2017 11 13

[[ratings]]
0
19_1.php.jpg

On November 9, the Lithuanian Energy Minister Žygimantas Vaičiūnas signed an order to adopt new electricity trading rules. The rules provide for the use of the Baltic Harmonised Imbalance Settlement Model from the start of 2018.

This model will be implemented together with the common Baltic balancing market to create equal conditions for all participants of the Baltic electricity market to participate in the balancing market. The order signed by the Minister introduces changes in Lithuanian legislation providing for the implementation of the common Baltic balancing market.

Until now electricity balancing has been carried out by the national electricity transmission system operators (TSOs) of each of the three countries. From the next year electricity balancing will be carried out at the level of the Baltic countries. For this purpose the TSOs of the three Baltic countries reached an agreement in principle earlier this year.

The creation of the common balancing electricity market, operating in accordance with harmonised balancing principles and applying harmonised pricing rules is one of the major steps towards the integration of the Baltic electricity markets.

“Harmonised balancing rules in the Baltic countries will help to create a competitive regional electricity market and also contribute to enhancing our energy security. This is another step towards the synchronisation of the Baltic electricity systems with the Continental European Network,” said Mr Žygimantas Vaičiūnas.

The new Imbalance Model will create equal and transparent conditions for all participants of the Baltic electricity market and thus boost competition and enable the whole Baltic electricity market to operate more effectively.

The new Imbalance Model is included in the 2015 updated Baltic Energy Market Interconnection Plan (BEMIP), and electricity balancing rules and principles provided for in this model are in compliance with the requirements of the Network Code on Electricity Balancing of the European Network of Transmission System Operators for Electricity (ENTSO-E).

Electricity balancing is necessary for the smooth operation of an electricity system. It means a balance between the production and consumption of electricity. Disparity or imbalance occurs when the amount of the generated and imported electricity does not match the amount of consumed and exported electricity.

So, TSOs purchase and sell electricity depending on the shortage and surplus of electricity. The amount of purchased and sold electricity is called balancing electricity.