Balancing Energy Market
Essential for a functioning balance group model is
the creation of competition among the balancing energy volumes. In addition to the (technical and
financial) clearing and the risk management, the organization of the balancing energy market is a
further important function of the balance group model: AGCS organizes – similar to an exchange – a
trading place on which market participants can place bids to buy or sell energy volumes. The Merit
Order List is compiled based on the bids made by providers on an Internet-based market platform and
sent – without price information – to the system operators. The system operator requests per fax
the required volume of tertiary control reserve depending on the balancing energy needs. AGCS acts
as central counterparty and is the buyer and/or seller of balancing energy volumes.
The following measures are implemented by AGCS to improve liquidity on the balancing energy
market also in the event of bottlenecks:
- The Internet-based market platform can be re-opened at any time by the system operator.
- The Day-ahead Rates offered by the storage capacity operators are available in the case of a
market re-opening. This storage product makes the entire storage capacities available to market
participants ad hoc that can be used by balancing energy providers to provide tertiary control
reserve.
- In order for the market to function smoothly also in the case of bottlenecks, AGCS has taken additional measures to maintain supply security: In the event of bottlenecks, structured and/or unstructured hourly block bids may be made by fax on the balancing energy market and for the first time, voluntary blackouts of consumers are possible in the balancing energy market.