Nordic transmission system operators' report on aggregation in the balancing markets
Nordic TSOs have cooperated writing a report on aggregation in the balancing markets. The aim is to utilize the whole flexibility potential of the electricity system.
Aggregation means combining flexibility from smaller consumers and generators to be able to provide that flexibility to the electricity and balancing markets. Developing aggregation is one of tools to balance the electricity system efficiently while intermittent electricity generation increases.
While the technical solutions for aggregation are here, there are barriers especially connected to introducing new market players, third party aggregators, which are on the outside of the traditional supply chain in the electricity system (i.e. balance responsible party – retailer – consumer). This requires a reform of the current market rules.
The Nordic TSOs, Energinet, Fingrid, Statnett and Svenska kraftnät, have cooperated studying third-party aggregation in the balancing markets. This lead to writing a discussion paper describing the existing aggregation models and the models that are to be piloted in the Nordic countries. The cooperation continues by following the pilot projects and the aim is to organize a Nordic stakeholder meeting in latter half of 2018 to share the findings of the pilots.
The aim is harmonization of the aggregation rules in the balancing markets. It implies that actors can relate to one instead of four different national concepts in the Nordics. Still, with today's reality where we are in different phases in each country and still testing models, a stepwise approach is needed to this development.
In addition to the Nordic cooperation, Fingrid has actively develop aggregation models in Finland and together with other neighbouring TSOs. In Finland, markets for frequency containment reserves (FCR) are opened already to third party aggregation and there are two pilots focusing balancing energy market (mFRR) which are starting soon. Read more.
Link to the Nordic aggregation report.
Also, Baltian TSOs have worked with aggregation models and published a report which is currently under consultation. Read more.
Laura Ihamäki, Fingrid Oyj, laura.ihamaki[at]fingrid.fi