Power is Digital & Green

Why do we needControl energy in the electricity grid?

Balancing energy is a type of electricity that is used to maintain the balance in the electricity grid. The electricity grid must always generate as much electricity as is consumed. If this balance is disturbed, e.g. because more or less electricity is suddenly consumed, this can lead to problems or even a blackout.

This is where balancing energy comes into play. It ensures that the electricity grid remains stable by quickly stepping in when more electricity is needed or when there is a surplus. This is particularly important because more and more electricity is coming from renewable energy sources such as wind and solar, which do not always provide a steady supply of electricity.

Without balancing energy, fluctuations in consumption or generation could lead to major problems in the grid. It is therefore crucial for the security and reliability of our electricity supply.

Control energy to stabilise the grid frequencythe different types

The aim of this balancing mechanism is to keep the grid frequency constant at 50 Hertz. As fluctuations can occur both upwards and downwards, the balancing energy is used to either relieve or stabilise the electricity grid. In concrete terms, this means that energy is fed into the grid (positive balancing energy) when the frequency falls below 50 Hertz and energy is withdrawn (negative balancing energy) when the frequency rises above 50 Hertz.

In order to stabilise the electricity grid as quickly as possible at all times, there are different types of balancing energy that are activated at different times. In the event of a frequency deviation, the primary reserve is activated automatically within 30 seconds. This is followed within 5 minutes by the secondary reserve, which serves to relieve the primary reserve and further equalise the imbalance. Finally, if the imbalance is larger and longer-lasting, the minute or tertiary reserve is activated manually after around 15 minutes. These different types of balancing energy take into account both the demand for electricity and any oversupply of electricity, thus ensuring a stable grid frequency.

Additional revenue from holdingand provision of balancing energy

Grid control is carried out by the transmission system operators (TSOs) in the respective control areas. Companies have the opportunity to make their flexibility available to the TSOs and are remunerated for this. Assets that provide balancing energy are subject to a number of important criteria that must be met in order to participate. Not every asset can therefore provide balancing energy. Assets that participate in the balancing energy market are, for example, traditional power plants such as gas turbines, Power2Heat plants or pumped storage facilities, as these can be ramped up or down quickly. In the case of renewable energies, the decisive factor is whether they can react quickly. This is why wind and solar plants are sometimes only important in combination with a storage system. Fluctuations in the electricity grid, for example due to unexpected continuous rainfall, cannot be compensated for by solar energy if these are not generated due to a lack of solar radiation.

Battery storage systems are also very important due to their fast response times and flexibility and are particularly useful for providing primary and secondary reserves. Another option is for industrial plants with high energy consumption to reduce or increase their consumption at short notice. If there are several different assets at different locations, they can be bundled into a virtual power plant (pool) and participate together as one power plant in the balancing energy market.

Types of balancing energyand the various markets

The transmission system operators (TSOs) are responsible for the operation, maintenance and expansion of the electricity grids. They operate supra-regionally and act as central hubs that ensure that the electricity grid remains stable throughout the country. This means that they are not tied to a specific area, which allows them to react flexibly to regional fluctuations.

This structure decouples grid operation and power monitoring from power generation and supply, ensuring independent and reliable grid stability.

In addition to the national transmission system operators, there is an internationally expanded grid control organisation, the Grid Control Cooperation (IGCC). This network enables the interstate exchange of energy in order to guarantee even greater security. However, this has not yet run smoothly and many projects have not yet been realised. Nevertheless, more and more progress is being made in this area.

Meet the technical requirements forthe participation in the balancing energy market

FlexPowerHub provides you with a simple and efficient solution for the automated calculation and submission of revenue-optimized bids. In order to participate in the balancing energy markets, a number of requirements must be met in advance. For the marketing of balancing energy, technical qualifications are required depending on the respective transmission system operator and may therefore vary.

Prequalification for the balancing power market is a qualification test for companies to participate in the tendering procedure for the allocation of balancing power. The admission is organized in 2 steps:
  1. Technical prequalification
Here it is checked whether the assets meet the technical requirements. There are different requirements per reserve type (primary, secondary & tertiary) and these are tested separately. The technical requirements are based on the international specifications of ENTSO-E.

2. the framework contract

The respective contract is the same for all providers and contains the details of the legal relationship between the provider and the control area manager. A minimum capacity of 1 MW (for the minute reserve and secondary reserve up to PICASSO & MARI; and 1 MW for primary reserve) is required to participate in the balancing energy market. It is possible to pool the 1 MW by joining a virtual power plant.
In Austria: Approval is organized through APG and the requirements are detailed in the prequalification conditions. With a valid framework agreement, no bidding obligation arises, but the provider is considered accredited and from this point on has the possibility to participate in control energy tenders for the APG control area on the electronic tender platform.
In Germany: Prequalification takes place via a procedure with the respective TSO in whose zone they are connected. It is based on the minimum requirements documented in Appendix D of the Transmission Code, differentiated by reserve power quality. A version covering the entire European market is currently being prepared by the Association of European Transmission System Operators, ENTSO-E. Prequalification documents can be submitted to the TSO concerned by using this portal. You can request access to the PQ portal from your connection TSO.

A balance group is a grouping of generators, suppliers, traders and customers into a virtual group. The aim is to keep the balance between balancing the supply (generation, procurement) and demand (consumption, delivery) of energy on a quarter-hourly basis.
The difference between. the generation and delivery of this energy is called balancing energy. The balance responsible party (BGV) is responsible for the balance group. He/she represents them vis-à-vis other market participants and is liable for the balancing energy incurred.
The BGM is a natural or legal person. Every market participant is obliged to join a balance group or to form one himself. The BGM therefore supplies or procures the energy from the respective balance group.
Balance groups can only be formed within a control area. It is not relevant in which network area or on which network level the members of a balance group are physically connected. Suppliers and some large end customers have a direct contractual relationship with BGV and are therefore referred to as direct balancing group members or balancing group members. Indirect members, on the other hand, are end customers who, through a supply contract with their supplier, belong to a balance group.

Our services

If your plants meet all the requirements for the marketing of balancing energy, there is nothing standing in the way of your own marketing. And this is where FlexPowerHub comes in… Our service covers the entire trading process on the balancing energy market.

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