Serbia, Montenegro, Macedonia: Regional balancing markets integration models and their possible implemtntation inside the SMM block

28. June 2016. / SEE Energy News

Current level of development of the regional balancing market requires major additional efforts to establish market principles, improve efficiency and ensure cheaper balancing. The model of regional balancing markets integration was analysed in the paper by Zoran Vujasinovic, Nebojsa Jovic and Dusan Vlaisavljevic from the Electricity Coordinating Center at the 32nd Conference CIGRE. Current developments at the level of the European Network of Transmission System Operators and the European Union and development of the balancing electricity market are going in the same direction, demonstrating how Europe plans to develop in terms of balancing market development and integration. Therefore, Serbia and other countries of the Southeast Europe should develop market balancing mechanisms for the benefit of participants in their respective markets.

There are untapped opportunities, such as the common sizing of the balance reserves at the level of the control block (Serbia-Montenegro-Macedonia), as well as energy exchange balancing mechanisms (imbalance netting) that do not seem too complicated and which with some efforts by TSOs and regulators could be established. Further development envisages the exchange of balancing services after the auction system, a common list of engagements for all aspects of balancing services and products.

Integration of national balancing electricity markets in Europe in line with the ongoing activities, as well as network codes governing power system balancing, can contribute to significant progress in the technical performance of the power system, creating balancing market competition and reducing balancing costs. There are two forms of cross-border cooperation between balancing markets: cross-border exchange of balancing reserve and cross-border exchange of balancing energy.

To achieve more efficient common balancing market, integration by establishing coordinated balancing areas of several TSOs was predicted. The possible integration mechanisms are the common use of balancing reserves and common use of balancing energy.

The model of joint dimensioning of balancing reserves can only be applied to regulation areas inside the regulatory blocks, for example, within the SMM block (Serbia, Montenegro, Macedonia). This model predicts that transmission system operators within the regulation block can jointly dimension the size of balance reserves to the highest incident level inside the block, rather than each of them individually holding a reservation based on the highest incident in their respective control areas.

Cross-border exchange of balancing energy between TSOs can be applied by using an imbalance netting model, balancing energy exchange model based on priority lists with margins and balancing energy exchange model based on a common priority list, transmits Serbia-energy.eu

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