The Balancing Model is based on Balance Responsible Parties acting on a common balancing market which is operated by the Independent System Operator.
According to the Market Rules a Balance Responsible Party is a Market Participant that overtakes financial responsibility for the net imbalance (balancing generation, consumption and exchange) or for the net imbalance of a group of Market Participants, including balancing of its own activities. At the present stage of market opening, the only Balance Responsible Parties are the incumbent power utilities.
Balancing energy is exclusively provided by the three incumbent power utilities. According to the grid code there is an obligation for power generators to provide balancing energy. Ancillary service and balancing energy providers are pre- defined on annual basis by decision of the regulator.
The Independent System Operator is entitled to use balancing energy from domestic production as well as energy from abroad. When using balancing energy from abroad an explicit allocation for cross border capacity based on clearing price approach takes place. In addition it is possible to use residual capacity for balancing purposes or to use capacity within the Transmission Reliability Margin.
Source; Bosnian ISO/ECRB
