Modalities and legal framework
In addition to broader regulations from the EnWG and StromNZV, a stringent legal framework is now being established at the European level. The overarching EB GL and SO GL already form a detailed set of rules. Numerous methods have been developed, particularly from the EB GL, which are to be uniformly applied by all European TSOs, defining products and processes and forming the framework for operating the MARI and PICASSO platforms. Finally, there are still requirements for the modalities for balancing service providers (MfBSP) and balance responsible parties (balancing group contract and reBAP determination) that need to be addressed and developed at the national level. If TSOs procure balancing services across borders, they must do so with harmonized products and processes that, according to Article 33 of the EB GL, must be regionally consulted, requested, and approved by the relevant regulatory authorities of the participating countries.
The EB GL lays down principles for the European market for balancing energy. For instance, the balancing energy price may not be set in a contract for the provision of balancing services; platforms for exchange must be established, balancing energy is to be remunerated based on a single pricing method, and the TSOs are to ensure financial neutrality in balancing services activities.
The following methods developed and approved from the EB GL provide more detailed guidance on its stipulations:
Implementation Framework for aFRR and mFRR:
This framework defines the standard products for balancing energy and sets the rules and processes for the operation of the platforms, including disclosure obligations and implementation deadlines.
Pricing for Balancing Energy:
This pricing method regulates uniform principles for the remuneration of aFRR and mFRR energy. The details of the remuneration are regulated in the national modalities.
Purposes of Activating Balancing Energy:
This method defines the deployment purposes for the standard products of balancing energy.
Settlement of Intended Energy Exchange:
The rules for inter-TSO settlement of exchanged balancing energy are embedded in this method.
Standard Products for Balancing Services:
If two or more TSOs procure aFRR or mFRR services in a joint tender, this method is mandatory. In addition to listing the permissible standard products, it defines other product properties such as the minimum bid size.
Method for Harmonizing the Main Components of the Imbalance Price:
This method defines the main components that may form the imbalance price and further principles of balancing group accounting.
Modalities for Balancing Service Providers (MfBSP):
Each TSO must develop and publish these (national) MfBSP in compliance with all EB GL requirements and methods. They detail the rules of the balancing market, close regulatory gaps, and define the national implementation scopes of the European regulation.
Modalities for Balance Responsible Parties according to Art. 18 para. 6 EB GL:
These modalities consist of the standard balancing group contract [WY1] and the calculation rules for the imbalance. All information on this can be found on netztransparenz.de.