Assessment of Economic Surplus Generated at the European Balancing Platforms

Abstract

Load frequency control is a well-established concept in AC-operated power systems. Balancing services are used to continuously keep the equilibrium between feed-in and withdrawal of electrical energy. In recent years, significant harmonization efforts took place in Europe to create a common domestic market for balancing energy. Beside alignment of market rules and product definitions, the establishment of European balancing platforms has been one cornerstone in this development. In 2022, the last two platforms went live enabling all connected countries to commonly activate balancing energy. This paper introduces the general concept of balancing platforms as well as the relevant elements of economic surplus resulting from the exchange of balancing energy. Based on the actual submitted bids, the economic surplus generated at the European balancing platforms for Frequency Restoration Reserves during the first year of operation is assessed. Without additional surplus due to unsatisfied demand, the economic surplus resulting from the exchange of balancing energy sums up to 174.6 m. € in the considered period. The experience from setting up and operating European balancing results in an outlook on further opportunities to foster competition by extending the European balancing platforms into balancing capacity cooperations.