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Discussions on the transitional balancing mechanism

9 september 2019 • Views: 1830

Discussions on the transitional balancing mechanism





The workshop on the development of transitional balancing mechanism (rules and process) for the electricity sector and its operationalization in the Republic of Moldova was held on September 9, 2019, in Chisinau.

The participants at the event emphasized that for a well-functioning electricity market it is necessary to approve the Power Market Rules which will also include the provisions concerning the electricity balancing mechanism, balancing service providers and the balancing responsible parties.

 

In order to develop an operational balancing mechanism, it is necessary to meet technical requirements such as, the availability of measuring equipment that would allow hourly recording of electricity consumed, the remote transmission of data, as well as, the development of forecasts for electricity consumption and production, including the electricity delivered by producers from renewable sources.

 

The Moldovan market is exposed to several challenges when implementing the Power Market Rules according to the European target model. These challenges are the following: a) a limited market size; b) its reliance on the electricity imports from Ukraine and from Moldovan Thermoelectric Power Plant located in the region of Transnistria; c) the lack of competition on the internal market, etc. Normally, the electricity purchased for balancing comes at a higher price compared to prices on other organized markets. In order to diminish the impact of a higher priced balancing electricity on the electricity price for final consumers, it would be reasonable to minimize the amount of purchased electricity for balancing, which can be achieved by an accurate planning of electricity consumption by each participant of the wholesale market and of the entire power system. In case a wholesale market participant admits/allows imbalances, he will be deemed responsible for them.

 

The event was attended by representatives of the National Agency for Energy Regulation (ANRE), representatives of the Energy Community Secretariat, EU4Energy Project experts, representatives of state institutions, license holders from the electricity sector and other interested parties.

 

In 2018, ANRE has already received technical assistance in the process of developing an initial draft of the Power Market Rules, which respects the general principles of the European target model, but the achieved outcome does not include regulations regarding the transition period – from the current electricity market structure to the target structure model. Very important regulations from our point of view.