Serbia: Electricity balancing market trends

, News Serbia Energy

Being the transmission system operator, PE EMS is responsible for system balancing and provision of system services within the power system in the Republic of Serbia. In line with the Electricity Market Code, which introduced the balancing responsibility concept in the electricity market in Serbia, customers who are no longer entitled to public supply for all exchange points had to regulate their balancing responsibility. By rule, they transferred it to the supplier, except for one customer in 2014 who decided to the balancing party himself. Until 31/12/2014 and including that date, there were 44 electricity market players in total which signed a Contract on Balancing Responsibility with PE EMS, thus becoming parties with balancing responsibility.

Pursuant to the Energy Law, in 2014, PE EMS was obliged to purchase electricity under market conditions for the purpose of loss recovery in transmission grid, of business facilities supply and of its own demand. PE EMS purchased the necessary electricity quantities from PE EPS via public procurement procedure.

Since January 1, 2013, electricity balancing market was established in the Republic of Serbia as prescribed by the Energy Law and Electricity Market Rules. In 2014, on the basis of new Transmission Network Code, PE EMS prepared a draft of amendments to the Electricity Market Rules which was approved by the Council of the Agency. These amendments will regulate the balancing responsibility of electricity market players in more detail. The methodology for the calculation of the fee for balancing group deviation was improved. New methodology for the calculation of acceptable deviation of the balancing group and financial calculation method were established. The possibility to use common reserve within the regulation block during the calculation period was established.

In line with the Contract on Participation in the Balancing Mechanism signed with PE EPS, for the purpose of keeping balance between the total electricity generation, consumption and nominated exchange blocks within their control area, PE EMS as the transmission system operator activated his balancing entities of secondary and tertiary regulation. Tertiary regulation was activated in line with the schedule for activating balancing entities which was submitted by PE EPS to the transmission system operator. Emergency exchange was performed in line with the contracts signed between PE EMS and the neighbouring transmission system operators. In 2014, total engaged balancing energy amounted to 774 GWh, for which the total weighted settlement price amounted to 35.03 €/MWh. Bearing in mind the direction of activated balancing entities, it amounted to 54.67 €/MWh for upward activation and 19.44 €/MWh for downward activation. , transmits