Serbia, Montenegro, Macedonia: Integration of the balancing market in the SMM block

22. June 2015. / News Serbia Energy

The integration of the national balancing electricity markets in Europe, in accordance with the ongoing activities, as well as with the proposals of the network codes, which regulate the balancing of the power system (Electricity Balancing- EB NC; Load-Frequency Control and Reserves – LFCR NC), can contribute to a significant progress in the technical performance of the power system, the creation of the competition in the balancing market and the reduction of the costs of balancing the electric power system. Two forms of the cross border cooperation of the balancing markets can be identified: cross border exchange of the balance reserves and cross border exchange of the balancing energy.

In addition to redefining the types of products and balancing the mechanisms, the network code EBNC also forces the technically more efficient and economically cost-effective balancing, through binding regulations for TSOs that require coordination and pooling in the so-called coordinated balancing areas (CoBA), within which the TSOs unify the balance markets. Through the EBNC, the definitions of the balancing services are merged at the level of the whole ENTSO-E


Taking into account the current level of the balancing market development at the level of SMM LFC block (Serbia, Montenegro, Macedonia), one might expect that the mechanisms of the integration, in terms of the balance reserves and balancing energy, run parallel to some extent.

Joint dimensioning of the reserves at the level of the SMM LFC block is the untapped potential, with which the total reserve at the block level could be reduced from about 1.000 MW to 600 MW (collectively dimensional incident – outage of one unit in TPPNT B). This is feasible if there is plenty of free transmission capacity on the borders of Serbia-Montenegro and Serbia – Macedonia. Preliminary analyzes indicate that the currently available transmission capacity (mostly for the network at the intraday level) were enough to provide positive effects in the joint dimensioning.

Current activities at the SMM block regarding a common use of the Tertiary Reserve need to be operationalized and in align with the common dimensioning of the reserves. The Joint use of the tertiary reserve would imply the possibility of activating the reserve from the other TSO, through the exchange of mFPP /RR balance reserve. Operationally, the reserve would be activated in the first phase through the communication and orders of the dispatcher. Such a mechanism would be the first step towards creation of the CoBA within the SMM block.

The next step could be the improvement of the previous step through the introduction of a common list of priorities (CMO), first with and then without the margins, and then the establishment of a common platform for the exchange of the balancing energy (mFRR/RR).

With regard to the secondary regulation (aFRR), the first real step could be the establishment of a “network imbalance” mechanism, which does not require a drastic level of markets compliance within the SMM block.

The next steps, in terms of secondary control, would be as the exchange of the secondary energy through the CMO, i.e. through coupling mechanisms of network imbalance, covering (the remaining) the imbalances over CMO list for the activation of the secondary energy.

Further modalities for cooperation, with regard to the reserves, such as the exchange and/or sharing of the balance reserves, can be develop in parallel with the integration in terms of trade with balance energy.

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