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Recent EU legislation enforces the integration of European balancing markets, with harmonized products and international platforms for the procurement and activation of reserves; nonetheless, different power balancing strategies remain. The Netherlands and Belgium encourage market participants to support balancing the control block by publishing real-time information. This article refers to such concepts as smart balancing, and a market simulation tool was developed to assess the relevant market parameters for effective smart balancing. This shall contribute to the true integration of real-time balancing energy markets. The scope of the assessment of relevant market parameters was Germany, and the results showed that a pricing scheme had less impact on the results, as currently is understood by European TSOs and regulators. Moreover, the accuracy and frequency of real-time publication indicate the effectiveness of smart balancing and the associated reduction of the activation of balancing energy and associated costs. Consequently, this article proposed a road map for Germany to introduce an adapted smart balancing approach, starting with a simple traffic light.

Demand response (DR) has effectively maximized renewable energies integrated into energy supply systems. This paper investigated DR benefits on three building types and the district heating (DH) production of a community consisted by these buildings in German conditions. Firstly, the buildings and the DH production were simulated without DR by tools IDA-ICE and HGSO, separately. Secondly, the three buildings were simulated by a rule-based DR control. After that, the tool HGSO calculated the total production costs and CO2 emissions based on the power demand with DR. The results show 2.8%-4.8% heating cost savings by DR for different building types. For DH producers, DR application reduces the total DH demand and CO2 emissions by 3.8% and 32.3 %, respectively.