The first Latvian wind park and electricity battery / day qualified for the balancing capacity market

Solar and wind park operators as well as electricity battery operators are increasingly increasing interest in selling balancing services. The first Latvian Wind Park and electricity battery, managed by the Utilitas Wind « group company SIA » TCK « , have already qualified for participation in the balancing capacity market.

Since February 4 this year, the unified Baltic balancing capacity market operators of Latvia, Lithuania and Estonia (PSO) JSC « Augstsprieguma tīkls », JSC « Litgird » and JSC « Elering » are buying the balancing capacity of the energy system for safety. The balancing market, on the other hand, can earn by offering a balancing service, or at the request of PSOs to increase or reduce the production or consumption of electricity. The PSO activates balancing power in moments when the power system results in deviation from the planned electricity consumption or generation.

« Electricity market power plants provide revenue for electricity produced. But in addition to electricity, power plants can sell system auxiliary services that can become important, sometimes even the main revenue. The amount of growing solar and windpapers is considered to be a challenge for the balance of the same sun and wind. Opportunities « , says Gatis Junghāns, Member of the AST Board.

The number of reserve providers is expected to increase soon – currently in Latvia, there are 18 new reserves for the provision of technical compliance, where applications for solar power plants are the most important part.

Currently, SIA « TCK » is capable of providing up to 50 MW of manual frequency recovery reserve (MFRR) regulation capacity in both directions of regulation and the company continues to work to develop its power plants’ ability to engage in other regulatory products.

“The electricity market is very dynamic, and in particular it affects manufacturers using renewable energy. With the balance of balancing capacities, we are not only thinking about commercial benefits, but we also realize that part of the responsibility for the transmission system stable and balanced. Border, admits Renārs Urbanovičs, Member of the Board of TCK and Utilitas Wind Ltd.

Balancing power is a service purchased by the PSO to ensure the availability of balancing resources. Every day there are auctions where operators are purchased by the operators based on the offer of regulatory service providers for the next 24 -hour period. If necessary, the PSO shall use the balaning power frequency control. These orders take place in the balancing energy market, where participants who do not maintain a power reserve can also be dynamically involved.

The Baltic Balancing Power Market was launched on 4 February this year. It provides the system for balancing and the power reserve necessary for the frequency control following the disconnection of the energy system of the Baltic States from the Russian -controlled energy system and the synchronization of power grids with Europe.

It has already been reported that in order to ensure the availability of balancing capacity necessary for the Baltic Frequency Control unit, the Baltic PSO must ensure the availability of sufficient balancing capacity. Currently, the market consists of a frequency maintenance reserve (FCR) and manual frequency restoration reserve (MFRR).

The automatic frequency recovery reserve (AFRR) energy markets are expected to be completed in 2025 in April 10, which will be followed by the first AFRR power auction on April 15, 2025. According to the Public Utilities Commission (PUC) approved amendments to the Network Code in the Electricity Sector, from 1 July 2025, the cost of maintaining balancing capacity will have to be covered by market participants, but will be covered by AST from their revenue. According to AST, the additional cost of maintaining balancing capacities in 2025 will be € 42 million.

This cost is expected to diminish this year as this year’s AST -built electricity -accumulated battery systems in the AST -stations of AST in Rezekne and Tumis.

The overall market demand for balancing capacities in the Baltic States will reach around 1,500 MW in 2025, and demand is expected to increase with the increase in renewable energy production and the increase in the number of so -called generating consumers.