Balancing energy
DISCLAIMER:
All content in further text is written in a good intention to help and make easier for the market participants to understand the procedure provisions related to the imbalance settlement of the balance groups.Croatian Energy Market Operator ltd. - HROTE d.o.o. is not responsible for any mistakes in provided information.
For more details and explanations related to balancing energy please refer to the Croatian Transmission System Operator-HOPS d.o.o..
INTRODUCTION
Balancing energy is electricity used by the transmission system operator for the purpose of balancing and regulating the frequency of the transmission system. In case of lack or surplus of the electricity in the transmission system the transmission system operator activates balancing energy from balancing service providers.Detailed provisions on the balancing of the transmission system are provided in The Electricity Balancing Rules (HOPS, 11/2019)
First (monthly) imbalance settlement
First (monthly) imbalance settlement represents monthly financial settlement for the imbalances made by the balance group managers.
Imbalances are calculated on the hourly basis (settlement interval “i”) and the settlement period is a month (settlement period “j”).
Imbalance of the balance group (Eimbalance, BG,i)
In the first (monthly) settlement the imbalance of the balance group represents the difference between the total realization and the market position of the balance group for each settlement interval (hour). It is calculated in [MWh] in accordance with the following formula in:
Eimbalance BG,i = Erealization BG,i – Emarket position BG,i
Where:
Erealization BG,i – is the total quantity of imbalance for the balance group at the settlement interval „i“ [MWh]
Emarket position BG,i – is the market position for the balance group at the settlement interval „i“ [MWh]
Realization of the balance group member (Erealisation member BG,i)
Realization of the balance group member represents the difference between the total quantity of intake and the total quantity of offtake on the transmission system. It is calculated in MWh in accordance with the following formula:
Erealisation member BG,i = Eintake member BG,i – Eofftake member BG,i
Where:
Eintake member BG,i – is the total quantity of intake on the transmission system made by the balance group member at the settlement interval „i“ [MWh]
Eofftake member BG,i – is the total quantity of offtake on the transmission system made by the balance group member at the settlement interval „i“ [MWh]
Market position of the balance group (Emarket position BG,i)
Market position represents the difference between the sale (including export) and purchase (including import) of electricity of the balance group at the settlement interval „i“ and it also includes a correction of the market position. It is calculated in MWh in accordance with the following formula:
Emarket position BG,i = Esale,ug,i – Epurchase,ug,i + Esale,ur,i – Epurchase,ur,i + Esale,correction,i – Epurchase, correction,i
Where:
Esale,ug,i – is the total quantity of electricity sold by all balance group members according to schedules, at the settlement interval „i“ [MWh]
Epurchase,ug,i – is the total quantity of electricity purchased by all balance group members according to schedules, at the settlement interval „i“ [MWh]
Esale,ur,i – is the correction of market position for the sold electricity as a result of balancing energy activation and other system services provided by all balance group members, at the settlement interval „i“ [MWh]
Epurchase,ur,i – is the correction of market position for the purchased electricity as a result of balancing energy activation and other system services provided by all balance group members, at the settlement interval „i“ [MWh]
Esale,correction,i – is the correction of market position for the sold electricity as a result of activated balancing energy and other system services when the balancing service provider and/or other services provider is the direct end user of the transmission or distribution system or independent aggregator, at the settlement interval „i“ [MWh]
Epurchase,correction,i – is the correction of market position for the purchased electricity as a result of activated balancing energy and other system services when the balancing service provider and/or other services provider is the direct end user of the transmission or distribution system or independent aggregator, at the settlement interval „i“ [MWh]
Imbalances are calculated on the hourly basis (settlement interval “i”) and the settlement period is a month (settlement period “j”).
Imbalance of the balance group (Eimbalance, BG,i)
In the first (monthly) settlement the imbalance of the balance group represents the difference between the total realization and the market position of the balance group for each settlement interval (hour). It is calculated in [MWh] in accordance with the following formula in:
Eimbalance BG,i = Erealization BG,i – Emarket position BG,i
Where:
Erealization BG,i – is the total quantity of imbalance for the balance group at the settlement interval „i“ [MWh]
Emarket position BG,i – is the market position for the balance group at the settlement interval „i“ [MWh]
Realization of the balance group member (Erealisation member BG,i)
Realization of the balance group member represents the difference between the total quantity of intake and the total quantity of offtake on the transmission system. It is calculated in MWh in accordance with the following formula:
Erealisation member BG,i = Eintake member BG,i – Eofftake member BG,i
Where:
Eintake member BG,i – is the total quantity of intake on the transmission system made by the balance group member at the settlement interval „i“ [MWh]
Eofftake member BG,i – is the total quantity of offtake on the transmission system made by the balance group member at the settlement interval „i“ [MWh]
Market position of the balance group (Emarket position BG,i)
Market position represents the difference between the sale (including export) and purchase (including import) of electricity of the balance group at the settlement interval „i“ and it also includes a correction of the market position. It is calculated in MWh in accordance with the following formula:
Emarket position BG,i = Esale,ug,i – Epurchase,ug,i + Esale,ur,i – Epurchase,ur,i + Esale,correction,i – Epurchase, correction,i
Where:
Esale,ug,i – is the total quantity of electricity sold by all balance group members according to schedules, at the settlement interval „i“ [MWh]
Epurchase,ug,i – is the total quantity of electricity purchased by all balance group members according to schedules, at the settlement interval „i“ [MWh]
Esale,ur,i – is the correction of market position for the sold electricity as a result of balancing energy activation and other system services provided by all balance group members, at the settlement interval „i“ [MWh]
Epurchase,ur,i – is the correction of market position for the purchased electricity as a result of balancing energy activation and other system services provided by all balance group members, at the settlement interval „i“ [MWh]
Esale,correction,i – is the correction of market position for the sold electricity as a result of activated balancing energy and other system services when the balancing service provider and/or other services provider is the direct end user of the transmission or distribution system or independent aggregator, at the settlement interval „i“ [MWh]
Epurchase,correction,i – is the correction of market position for the purchased electricity as a result of activated balancing energy and other system services when the balancing service provider and/or other services provider is the direct end user of the transmission or distribution system or independent aggregator, at the settlement interval „i“ [MWh]
Second (annual) imbalance settlement
In the second (annual) imbalance settlement the difference between metered realization pursuant to the General conditions for system use and electricity supply and realization in the first (monthly) imbalance settlement pursuant to the Rules for application of standard load profiles shall be calculated.
Settlement interval in the second (annual) imbalance settlement is a calendar month, and the settlement period is a calendar year.
Imbalances of individual balancing groups in the second (annual) calculation of imbalances is calculated by the Electricity Market Operator based on realization data of balancing group members and data on actual losses in the distribution and transmission system delivered by the Distribution and transmission System Operator.
Balancing group imbalance in the second (annual) imbalance settlement is a sum of imbalances of all metering points belonging to the balancing group:
Where:
– refers to the determined monthly imbalance of a metering point „j“ within the second (annual) imbalance settlement,
N – refers to the total number of metering points which belonged to the balancing group in the specific month.
Imbalance of a metering point in a calendar month equals a difference between realization in the second (annual) imbalances settlement and the first (monthly) imbalances settlement:
where:
– refers to the (calculated) monthly realization of a metering point within the second (annual) imbalances settlement,
– refers to the determined (calculated) data on a monthly realization in a metering point within the first (monthly) imbalances settlement.
Settlement interval in the second (annual) imbalance settlement is a calendar month, and the settlement period is a calendar year.
Imbalances of individual balancing groups in the second (annual) calculation of imbalances is calculated by the Electricity Market Operator based on realization data of balancing group members and data on actual losses in the distribution and transmission system delivered by the Distribution and transmission System Operator.
Balancing group imbalance in the second (annual) imbalance settlement is a sum of imbalances of all metering points belonging to the balancing group:
Where:
– refers to the determined monthly imbalance of a metering point „j“ within the second (annual) imbalance settlement,N – refers to the total number of metering points which belonged to the balancing group in the specific month.
Imbalance of a metering point in a calendar month equals a difference between realization in the second (annual) imbalances settlement and the first (monthly) imbalances settlement:
where:
– refers to the (calculated) monthly realization of a metering point within the second (annual) imbalances settlement, – refers to the determined (calculated) data on a monthly realization in a metering point within the first (monthly) imbalances settlement.Financial clearing
The imbalance price in the first (monthly) imbalance settlement
The imbalance settlement is calculated with the imbalance price (C1,i) which is equal for all balance group representatives at settlement interval „i“ no matter if they have positive or negative imbalances. All prices and financial amounts are rounded to two decimal places.
The imbalance price at the settlement interval „i“ depends on the regulation area imbalance direction.. The regulation area imbalance is the sum of the system imbalances (Eimbalance,i) and the total activated balancing energy in the regulation area (EURukp,i).
For the settlement interval „i“ the imbalance price C1,i) is equal:
Where:
p – is the coefficient of the financial neutrality (number between 0 and 1)
CEU+,i – is the weighted average price of the positive balancing energy activated from energy reserves for the purpose of frequency re-establishment on the transmission system, at the settlement interval [HRK/MWh]
CEU–,i – is the weighted average price of the negative balancing energy activated from energy reserves for the purpose of frequency re-establishment on the transmission system, at the settlement interval [HRK/MWh]
– is the day-ahead price of electricity on the Croatian Power Exchange (http://www.cropex.hr) at settlement interval „i“ [HRK/MWh]
EFRR+,i – is the total quantity of the realized positive balancing energy activated from power reserves at settlement interval „i“ [MWh]
EFRR–,i – is the total quantity of the realized negative balancing energy activated from power reserves at settlement interval „i“ [MWh]
The coefficient of the financial neutrality is determined by the iterative process in steps, increasing „p“ by 0,1, starting from 0 till 1. The iterative process stops when the sum of all financial obligations made by all balance group representatives is lesser or equal to financial obligations of the transmission system operator for the activated balancing energy in the settlement period (month). The coefficient of the financial neutrality at the settlement interval “i” is equal to 0 (zero) if the weighted average price of the positive and/or negative balancing energy is negative.
The imbalance prices in the second (annual) imbalance settlement
The imbalance settlement charge is calculated with the imbalance price (C2,j) which is equal for both positive and negative imbalances in the settlement period „j“ and it is calculated in accordance with the following formula:
Where:
EODS,i – is the value of the load curve of the distribution system determined by the Rules of application of replacement curves, at the settlement interval „i“ [MWh]
– is the day-ahead price of electricity on the Croatian Power Exchange (http://www.cropex.hr), at the settlement interval „i“ [HRK/MWh]
nj – is the number of total settlement intervals for the settlement period (month) „j“ in which the day ahead price of electricity ( ) is available.
Invoicing for the first (monthly) and the second(annual) imbalance settlement
The transmission system operator invoices the balance group representative if the total financial obligation for the balance group imbalances is negative.
The balance group representative invoices the transmission system operator if the total financial obligation for the balance group imbalances is positive.
The imbalance settlement is calculated with the imbalance price (C1,i) which is equal for all balance group representatives at settlement interval „i“ no matter if they have positive or negative imbalances. All prices and financial amounts are rounded to two decimal places.
The imbalance price at the settlement interval „i“ depends on the regulation area imbalance direction.. The regulation area imbalance is the sum of the system imbalances (Eimbalance,i) and the total activated balancing energy in the regulation area (EURukp,i).
For the settlement interval „i“ the imbalance price C1,i) is equal:
Where:
p – is the coefficient of the financial neutrality (number between 0 and 1)
CEU+,i – is the weighted average price of the positive balancing energy activated from energy reserves for the purpose of frequency re-establishment on the transmission system, at the settlement interval [HRK/MWh]
CEU–,i – is the weighted average price of the negative balancing energy activated from energy reserves for the purpose of frequency re-establishment on the transmission system, at the settlement interval [HRK/MWh]
– is the day-ahead price of electricity on the Croatian Power Exchange (http://www.cropex.hr) at settlement interval „i“ [HRK/MWh]
EFRR+,i – is the total quantity of the realized positive balancing energy activated from power reserves at settlement interval „i“ [MWh]
EFRR–,i – is the total quantity of the realized negative balancing energy activated from power reserves at settlement interval „i“ [MWh]
The coefficient of the financial neutrality is determined by the iterative process in steps, increasing „p“ by 0,1, starting from 0 till 1. The iterative process stops when the sum of all financial obligations made by all balance group representatives is lesser or equal to financial obligations of the transmission system operator for the activated balancing energy in the settlement period (month). The coefficient of the financial neutrality at the settlement interval “i” is equal to 0 (zero) if the weighted average price of the positive and/or negative balancing energy is negative.
The imbalance prices in the second (annual) imbalance settlement
The imbalance settlement charge is calculated with the imbalance price (C2,j) which is equal for both positive and negative imbalances in the settlement period „j“ and it is calculated in accordance with the following formula:
Where:
EODS,i – is the value of the load curve of the distribution system determined by the Rules of application of replacement curves, at the settlement interval „i“ [MWh]
– is the day-ahead price of electricity on the Croatian Power Exchange (http://www.cropex.hr), at the settlement interval „i“ [HRK/MWh]nj – is the number of total settlement intervals for the settlement period (month) „j“ in which the day ahead price of electricity ( ) is available.
Invoicing for the first (monthly) and the second(annual) imbalance settlement
The transmission system operator invoices the balance group representative if the total financial obligation for the balance group imbalances is negative.
The balance group representative invoices the transmission system operator if the total financial obligation for the balance group imbalances is positive.
Imbalance prices
In accordance with The Electricity Balancing Rules (HOPS, 11/2019), electricity market operator (HROTE d.o.o.) is obliged to publish the imbalance price in the second (annual) imbalance settlement until 21st day of the month for the previous month.
Imbalance prices in the second (annual) imbalance settlement for 2024.
Imbalance prices in the second (annual) imbalance settlement for 2023.
Imbalance prices in the second (annual) imbalance settlement for 2022.
Imbalance prices in the second (annual) imbalance settlement for 2021.
Imbalance prices in the second (annual) imbalance settlement for 2020.
Imbalance prices in the second (annual) imbalance settlement for 2024.
Imbalance prices in the second (annual) imbalance settlement for 2023.
Imbalance prices in the second (annual) imbalance settlement for 2022.
Imbalance prices in the second (annual) imbalance settlement for 2021.
Imbalance prices in the second (annual) imbalance settlement for 2020.
Financial neutrality coefficient
The values of financial neutrality coefficient “p” in accordance with Electricity Balancing Rules (HOPS 11/2019):
| The values of financial neutrality coefficient „p“ | ||||||||||||
| 2024. | January | February | March | April | May | June | July | August | September | October | November | December |
| p | 0,00 | 0,00 | 0,00 | |||||||||
| The values of financial neutrality coefficient „p“ | ||||||||||||
| 2023. | January | February | March | April | May | June | July | August | September | October | November | December |
| p | 0,00 | 0,00 | 0,00 | 0,00 | 0.00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 |
| The values of financial neutrality coefficient „p“ | ||||||||||||
| 2022. | January | February | March | April | May | June | July | August | September | October | November | December |
| p | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,0 | 0,00 | 0,00 |
| The values of financial neutrality coefficient „p“ | ||||||||||||
| 2021. | January | February | March | April | May | June | July | August | September | October | November | December |
| p | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,05 | 0,00 | 0,00 |
| The values of financial neutrality coefficient „p“ | ||||||||||||
| 2020. | January | February | March | April | May | June | July | August | September | October | November | December |
| p | 0,00 | 0,09 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 |