RAE, the Regulatory Authority for Energy, is planning the balancing market entry of all energy sector players offering flexibility to the grid by the end of this year, a prospect seen as a key factor in lowering balancing market costs.
As a result, RES players, through green aggregators representing them, will participate in the balancing market by the end of 2021, along with the demand response mechanism.
The addition of RES producers promises to intensify competition in the balancing market, which, combined with the demand response mechanism’s participation, will contribute to a further de-escalation of balancing market surcharge costs.
Wind and solar energy farms will have a place in the balancing market. Other RES technologies, such as biogas units, are linked to operating aid contracts with fixed tariffs.
The demand response mechanism’s participation in the balancing market promises to enhance the system’s flexibility, in terms of demand, while the entry of RES producers will make electricity production even more flexible.