Role of Balancing Markets in Dealing with Future Challenges of System Adequacy Caused by Energy Transmission

Abstract

<jats:title>Abstract</jats:title><jats:p>The national energy and climate plans developed by the Baltic States for the period up to 2030 foresee a significant increase in the share of renewable energy in final consumption. Therefore, the development of wind, solar and distributed generation in the Baltic electricity system is expected to increase significantly in the next decade and, thus, the need for balancing capacity will increase. The planned synchronisation of the Baltic power system with the power system of Continental Europe in 2025 will also increase the need for frequency restoration and balancing reserves. At the same time, the shutdown of uncompetitive thermal power plants in the Baltics reduces centralized generation capacity. If this trend continues, the risk of electricity supply shortages will increase in the future. Therefore, it is important to identify activities that help mitigate this risk and take timely actions.</jats:p>

Bbema

“…Although the launch of BBM has already contributed to more efficient system balancing, the Baltic TSOs are still seeking for additional balancing providers to improve market liquidity, increase its cost-efficiency and widen the scope of available balancing resources in preparation for the planned Baltic power system synchronization with the Continental Europe system as of 2025 [8]. To that end, user-friendly tools for analyzing the BBM data could be beneficial in raising awareness and attracting new market participants, including those parties which have not been active in electricity markets before (e.g., demand response (DR) aggregators).…”

“…Though the BBM was launched more than three years ago, due to its limited regional scale, to the best of our knowledge, there have been only a few publicly available papers analyzing selected aspects of BBM operation during its first two years [8,10,12]. These analyses have been performed by the Latvian TSO, while the raw operational market data is freely available to the market participants and other interested parties on a dedicated website, the Baltic CoBA Balancing Dashboard [15].…”

“…E.g., a decreased activity of Estonian participants for downward balancing in 2019-2020 but a continuous increase of bids for the upward direction during the whole 3-year period. While the market activity from participants of different countries can be rather varied, it is obvious that the establishment of the common BBM has been very helpful in providing the Baltic TSOs with the balancing resources at hand compared to sourcing them by each individual TSO in their own country as was the case before [8,10]. Next, Figure 3 shows the result of integrating data of two markets: Baltic balancing market and Nord Pool day-ahead market for the three Baltic countries.…”

Enhancing Power System Frequency with a Novel Load Shedding Method Including Monitoring of Synchronous Condensers’ Power Injections

“…Another development to impact the inertia level of the Baltic power system is the expected rise in intermittent non-synchronous renewable generation capacity. Around 4000 MW of wind generation capacity is planned in the Baltic states up to year 2034 according to [20]. Separate national renewable energy targets in the scope of the EU 2030 Climate & Energy Framework [2] indicate sharp rise of share of renewable generation in Estonia and Lithuania, while Latvia is already close to fulfilling 2030 renewable electricity targets due to large existing hydropower generation capacity [21][22][23].…”

Modelling of Battery Energy Storage System Providing FCR in Baltic Power System after Synchronization with the Continental Synchronous Area

“…Active power reserve volumes in Baltic power systems calculated in 2020 after synchronization with CESA[10].…”