Elia Transmission Belgium successfully accesses PICASSO, the European platform for exchanging secondary balancing energy

BRUSSELS | On 26 November, Elia Transmission Belgium (ETB) successfully accessed PICASSO*, the European platform for the exchange of balancing energy from automatic frequency restoration reserves (aFRR**). This platform not only enables European transmission system operators to exchange aFRR balancing energy, but also provides access to the least costly aFRR balancing energy over a wider area (depending on the available interconnection capacities). Elia's access to PICASSO helps to increase social welfare while giving market parties new opportunities to take part in an integrated European balancing energy market. Access to additional volumes of balancing energy also helps to bolster system security. Initial results show a successful launch with significant volumes of balancing energy exchanges via the platform, regularly resulting in a reduction of imbalance prices.

The PICASSO project

The European Electricity Balancing Regulation requires that European TSOs establish a common platform for the exchange of secondary balancing energy, also known as aFRR. The PICASSO project was launched by 26 European TSOs with a view to implementing this platform. Elia, which is responsible for balancing electricity flows on the Belgian transmission system, supervised the overhaul of balancing methods used on the Belgian electricity system in order to incorporate the changes needed in connection with this project. Belgium is now an operational member of the PICASSO project, along with Italy, Germany, Austria, the Netherlands, Denmark, the Czech Republic and Slovakia. The project is a major step forward in international coordination for automatic frequency restoration and for the integration of European balancing energy markets. 

A successful launch and initial positive results

Elia Transmission Belgium's operational debut on the platform went very well. Elia officially connected on 26 November in quarter-hour 11:15-11:30. During the first 24 hours, 49% of Elia's aFRR balancing energy needs were met via the PICASSO platform (including implicit compensation), demonstrating its full relevance. For several quarter-hours during this first 24-hour period, Elia observed that aFRR exchanges via the platform resulted in significantly lower imbalance prices (for example, the quarter-hour 14:15-14:30 on 26 November). Of course, it will take several months before any truly representative trends become apparent and appropriate conclusions can be drawn.

More options for frequency restoration

aFRR is a frequency control service used by TSOs to balance electricity supply and demand automatically and in real time. These reserves, also known as secondary reserves, restore the frequency to 50 Hz. They have a fast response time and remain active for the entire duration required. Accessing the PICASSO platform broadens the scope of the balancing process by enabling the activation of aFRR in neighbouring countries in order to resolve imbalances in the Belgian system and vice versa.

aFRR plays a critical role in ensuring the security and stability of modern electricity grids, particularly during the transition towards the deployment of a greater share of renewable energy sources

aFRR delivers many benefits. Its main objective is to manage the stability of system frequency by maintaining it within a very narrow range around its nominal value of 50 Hz. Deviations can cause malfunctions in or damage to electrical equipment, thus jeopardising grid reliability. aFRR enables a rapid and automatic response to imbalances between electricity generation and consumption. This secondary reserve mechanism is also especially important given the growing integration of renewable energy sources, such as wind and solar, which are by nature intermittent and can induce fluctuations in electricity generation. Finally, by using balancing reserves efficiently, system operators can reduce the costs associated with managing imbalances and optimise the use of available resources.

“Access to the European aFRR platform marks a major step forward for us and we are delighted to join. Our participation in this platform not only allows us to improve system security, but also to play a crucial role in integrating European balancing markets while ensuring they are more competitive and efficient.”
Frédéric Dunon, Chief Executive Officer Elia

_{* PICASSO: Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation
** aFRR: automatic Frequency Restoration Reserve}