Energy and water regulatory commission (EWRC) published a draft amendments to the Electricity Trading Rules (ETR), including a new methodology for determining the prices of balancing energy, which is part of ETR:
The main proposed changes in ETR include:
- Defining contractual relations and the operation of new type of market participants – operators of closed electricity distribution networks and operators of electricity storage facilities . TSO (ESO) will keep a public register of the operators of electricity storage facilities.
- A new methodology for determining the prices of balancing energy. Introducing single (uniform) price model in settlement periods (15 min) where no balancing capacities are activated or when balancing capacities are activated in only one direction, respectively for upward or downward balancing energy. When, in a single settlement period, ESO activates balancing energy sources for both downward and upward regulation, two separate prices are applied – price for surplus and price for deficit.
The proposed Methodology for determining the prices of balancing energy, which is appendix to ETR, aims to create a mechanism for calculating imbalance prices of the balancing group coordinators in each settlement period, balancing status of the system, imbalance position (surplus/shortage) and payment direction. The table below illustrates a simplified model for applying the new balancing methodology: