28.11.2017 10:00
Current News, Electricity Market, International News

Public consultation on balancing structure begins. Development of balancing should be added to the Nordic Energy Forum agenda

Fingrid welcomes the recent decision by Nordic energy ministers to establish a Nordic Energy Forum. Development of Nordic balancing is a natural topic for the first forum, which will be held next spring. Today, Fingrid launched public consultation on a proposal concerning the Nordic balancing structure. The public consultation will continue until 4 January 2018.

The Nordic electricity system is undergoing an unprecedented transformation as the electricity production structure is rapidly becoming carbon-free, variable according to the weather and decentralised. At the same time, new electricity connections between the Nordic countries and the rest of Europe create the prerequisites for even stronger market integration. 

As production that varies according to the weather increases, the need to trade electricity in real time will also grow. Well-functioning balancing creates the prerequisites for real-time trading and implementing the transition to a clean electricity system on market terms. Balancing refers to measures that ensure a real-time balance between production and consumption, especially the balancing power and reserve markets.

"Balancing must be developed openly and in cooperation with stakeholders. The Nordic Energy Forum established by Nordic energy ministers provides an excellent platform for discussion and shaping development measures,” says Asta Sihvonen-Punkka, Fingrid’s Senior Vice President, Electricity Market Development.

For Fingrid, it is important that key principles related to the balancing power market and balancing be prepared in cooperation with market operators and other stakeholders. Fingrid’s aim is to create the prerequisites for a well-functioning electricity market that is based on open and equal principles. Extensive markets will benefit all electricity market parties throughout the Baltic Sea area.

Read more about Fingrid’s goals for market development: Our Shared Journey – a roadmap towards achieving a green electricity system.

Public consultation on balancing structure – Stakeholders involved in development

The 'guideline on electricity transmission system operation', which is part of EU legislation, entered into force on 14 September 2017. The guideline requires transmission system operators (TSO) to compile a joint proposal for the balancing structure in each synchronous area and deliver it to the regulatory authorities for approval by 14 January 2018. Balancing structure refers to the basic load-frequency control structure, which takes aspects of load-frequency control and maintenance into account. In particular, these include responsibilities and obligations as well as different types of reserves and their purposes.

The Nordic TSOs have not reached agreement on a joint balancing structure. Fingrid has launched its own public consultation because the TSO in Sweden, Denmark and Norway are also conducting a separate public consultation. The starting point for Fingrid’s proposal is the current balancing structure, which provides good possibilities to develop real-time electricity markets.

“We are committed to developing balancing and the real-time market in cooperation with stakeholders and other TSOs. However, the law now calls for formalisation of the balancing structure. We have decided to propose the existing, highly developed integration-based and globally advanced structure as the starting point for further development,” explains Asta Sihvonen-Punkka.

The material for the public consultation launched by Fingrid and instructions for responding are available in the link below.  We look forward to receiving answers to our questions and feedback on the draft proposal.

Based on the feedback, Fingrid will prepare a proposal for the balancing structure and deliver it to the Energy Authority and the Agency for the Cooperation of Energy Regulators (ACER) by 14 January 2018. The key aspects of the feedback will be included in the justification memorandum. 
Responses to the public consultation can be sent to the following e-mail address: verkkosaannot@fingrid.fi by 4 January 2018.
Further information:

Asta Sihvonen-Punkka, asta.sihvonen-punkka(at)fingrid.fi, tel. +358 30 395 5235

Vesa Vänskä, vesa.vanska(at)fingrid.fi, tel. +358 30 395 5185

Ritva Hirvonen, ritva.hirvonen(at)fingrid.fi tel. +358 30 395 4182