Balancing model in Latvia Proposal from Latvian TSO

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Balancing model in Latvia Proposal from Latvian
TSO

• Gatis Junghans
• Project manager
• LATVENERGO

Mini-fora. RIGA. 03.07.2006
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Electricity Market Act defines basic balancing
framework 1

• 13(1) TSO shall provide transmission service and
  balancing service and ensure operational
  stability in the transmission system. This shall
  be done in accordance with Grid Code
• 37(1) SOs shall perform settlement for balancing
  service in accordance with Grid Code in a
  transparent and non-discriminatory way.

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Electricity Market Act defines basic balancing
framework 2

• 36(1) TSO shall provide balancing service for
  customers, producers and distribution networks
  directly connected to transmission grid. DSOs
  shall provide balancing service for customers,
  producers and distribution networks directly
  connected to their grid.
• 36(2) Customers and producers that are market
  participants, and distribution networks shall
  enter balancing service agreement with SO whose
  network they are connected to.

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Balancing levels
Open supplies
TSO
Regulation
DSO
Balancing group
Customer
Customer
Customer
Customer
Balancing group
Customer
Customer
Customer
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Settlement for balancing groups
Trader buys 10 MWh of balance power
Traders portfolio
Electricity consumption
Electricity purchases
110 MWh
100 MWh
Electricity sales
Own production
10 MWh
20 MWh
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Pricing of imbalances

• Imbalance pricing methodology shall be elaborated
  and published by TSO
• Imbalance prices shall be calculated by TSO and
  applied by all SOs
• Imbalance prices shall be calculated ex-ante

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Evaluation of ex-ante pricing approach

• Pros
• Simplicity
• Imbalance prices known ex-ante
• Provides incentive to be in balance
• Cons
• Not real-time market based

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Thank You gatis.junghans_at_latvenergo.lv