Public consultation on Day-Ahead Balance Obligation of BRPs
Elia launches a public consultation on its study on “the Day-ahead Balance Obligation of the Balance Responsible Parties”. The study aims at analysing and assessing the pertinence of the current Day-Ahead balance obligation of BRPs and recommending the most adequate evolution of this obligation.
The study includes:
- A description of the current market design and the rules applicable to the BRPs in the Belgian control area;
- An evaluation of the Day-ahead balance obligation, and its relevance based on an analysis of the legal framework, interviews with market parties active in Belgium, a benchmark with neighbouring countries, an in-depth literature review of “virtual bidding” mechanism in force in some US markets as well as an analysis of the Elia operational processes relying on the Day-ahead nominations;
- A comparison of different possible evolutions of the Day-Ahead balance obligation with a recommendation for implementation of the most appropriate solution as well as cost-based analysis of the proposed evolution;
- Finally a description of the necessary steps for the implementation of Elia’s recommendation.
Elia publishes and distributes this study for consultation in order to collect stakeholders’ views on the study in general and to receive feedback on some specific questions on priorities and implementation approach. The stakeholders’ feedback will facilitate the finalization of the study.
Elia will publish the final report of the study at the latest by 23th December 2020.
In Belgium, each BRP must submit nominations to Elia after the Day-ahead market clearing. Those have to be balanced on a quarter-hourly basis meaning that the sum of the internal and external commercial trade schedules must equal the sum of the physical (injection/offtake) nominations of BRPs.
However, the current energy transition, with a growing share of intermittent energy sources as well as new technologies such as demand response, induces and requires more dynamic intraday markets and makes it more and more difficult to provide accurate forecasts in Day-Ahead. This evolution questions the relevance of the Day-Ahead balance obligation of the BRPs.
In this context, Elia started an analysis in order to assess whether this Day-Ahead balance obligation is still pertinent, or, in the contrary, whether it should evolve to allow the BRPs balancing their portfolio closer to real time, while still continue ensuring the system security.
Elia invites the stakeholders to provide comments and suggestions on the consulted document via the online form below during the consultation period from Tuesday 22th September 2020 to Tuesday 20th October 2020.
The main conclusions of the study will be presented during the Working Group Balancing of 24th September 2020 allowing to engage in an open discussion with the stakeholders.