Energy Authority confirms changes to the terms and conditions for balance responsible parties and balancing service providers in relation to the 15-minute imbalance settlement period
Finland will switch from a 60-minute to a 15-minute imbalance settlement period on 22 May 2023. The introduction of the 15-minute imbalance settlement period will lead to changes in the terms and conditions for balance responsible parties and balancing service providers. The Energy Authority has confirmed the changes to the terms and conditions and they will take effect when the 15-minute imbalance settlement period is adopted.
The European guideline on electricity balancing obligates EU Member States to transition to a 15-minute imbalance settlement period. Finland will transition on 22 May 2023 in accordance with an exemption order issued by the Energy Authority. Most energy metering will also switch to a 15-minute resolution in accordance with the applicable government decree.
Reducing the imbalance settlement period and changing the energy metering resolution from the current one-hour period to a 15-minute period creates a need to update the terms and conditions applying to balance responsible parties and balancing service providers. On 17 February 2023, the Energy Authority confirmed the changes to the terms and conditions, and they will take effect when the 15-minute imbalance settlement period is adopted at 1 am on 22 May 2023. At the same time, other amendments will be made to the terms and conditions that are unrelated to the introduction of the 15-minute imbalance settlement period.
Terms and conditions for balance responsible parties
Key changes:
- Production plans shall be submitted in 15-minute times series for each imbalance settlement period in accordance with the new division of transmission areas.
- The imbalance volume fee will be netted for one-hour imbalance settlement periods.
- Added time for balance responsible parties to report on fixed deliveries.
- Added the impact of running peak load reserves on the price of imbalances.
Provisions taking effect on 22 May 2023:
- Terms and conditions for balance responsible parties: Appendix 1, part 1, Fingrid Oyj’s general terms and conditions concerning balance management
- Terms and conditions for balance responsible parties: Appendix 1, part 2, Fingrid Oyj’s general terms and conditions concerning imbalance settlement
- Terms and conditions for balance responsible parties: Appendix 2, Fee components and determination of fees
Terms and conditions for balancing service providers
Key changes:
In relation to the introduction of the 15-minute imbalance settlement period, the terms and conditions for the Frequency Containment Reserve (FCR), manual Frequency Restoration Reserve (mFRR) and automatic Frequency Restoration Reserve (aFRR) were amended to require the calculation in 15-minute periods of balancing energy due to the activation of reserves. However, the Market time unit will remain one hour in all reserve markets (capacity and energy markets).
In addition, the terms and conditions of all reserve products include changes related to the harmonisation of sanctions, and the participation of shared power plants has been revised in the terms and conditions of the mFRR and aFRR. The terms and conditions for the aFRR allow balancing service providers to offer reserve units from several different balance responsibilities.
The new terms and conditions for the FCR require reserve units with limited activation capabilities to provide status information on Normal-state Energy Management (NEM) and Alert-state Energy Management (AEM). The mandatory notices of reserve units required in reserve bids for the frequency containment reserve will be repealed, as the settlement of reserve capacity and energy treatment of activated reserves will be carried out on the basis of the maintained reserve capacity submitted as real-time data.
In addition, a new division of transmission areas has been added to the terms and conditions of the mFRR. In the future, reserve units participating in the balancing power and balancing capacity market will be separated into three transmission areas (south/central/north) instead of the current two.
Provisions taking effect on 22 May 2023:
- Terms and conditions for providers of manual Frequency Restoration Reserves (mFRR)
- Terms and conditions for providers of automatic Frequency Restoration Reserves (aFRR)
- Terms and conditions for providers of Frequency Containment Reserves (FCR)
- Terms and conditions for providers of Fast Frequency Reserves (FFR)
Further information:
- Terms and conditions for imbalance settlement by balance responsible parties: Jani Piipponen, Fingrid, jani.piipponen[at]fingrid.fi
- Terms and conditions for balance management by balance responsible parties: Anders Lundberg, Fingrid, anders.lundberg[at]fingrid.fi
- Terms and conditions for balancing service providers: Otso-Ville Rinne, Fingrid, otso-ville.rinne[at]fingrid.fi
Decision by the Energy Authority (includes the approved terms and conditions) > (In Finnish)
Previous press release on this topic: