No need for derogation regarding 15 min imbalance settlement period implementation schedule

Energiavirasto (The Energy Authority) considers that there is no need for derogation on implementation schedule of 15 min imbalance settlement period stated in Electricity Balancing Guideline (EU 2017/2195). According to the guideline the 15 min imbalance settlement period shall be implemented by 18.12.2020.

Reasoning

  • Transition to shorter imbalance settlement period can be implemented cost-efficiently using interim solutions before all measurements are in 15 min period.
  • Common Nordic schedule is primary issue to gain benefits of 15 min imbalance settlement period. Isolation from Nordic markets would result in significant costs. Effective market functioning must be ensured.
  • Accurate implementation schedule is important for market parties. Implementation schedule based on individual IT-projects such as datahub would be risky for the whole market and preparation for the transition would become more challenging.
  • Whatever the implementation schedule would be, measuring everything in 15 min period would require preliminary metering change.

Background

According to the Electricity Balancing Guideline 15 min imbalance settlement period shall be implemented by 18.12.2020 in the EU electricity markets. According to the guideline a national regulatory authority, at the request of a TSO or at its own initiative, may grant a derogation from implementation schedule of 15 min imbalance settlement period until 1 January 2025.

The Energy Authority has studied if there is need for derogation on implementation schedule. During the preparatory work the Energy Authority has estimated the effects of different schedules. Because the Electricity Balancing Guideline requires that 15 min imbalance settlement period will be implemented, an option where 15 min imbalance settlement period would not be implemented was not addressed at all in the preparatory work.

The Energy Authority conducted a survey for stakeholders in early 2018. The purpose of the survey was to gather feedback about pros and cons of the implementation schedule. A total of 34 responses were received.

The feedback of the survey was used in a study commissioned by the Energy Authority in the summer of 2018. The purpose of the study was to find out the minimum requirements of implementation of 15 min imbalance settlement period and the measures that need to be made to achieve the requirements. The study was conducted by Empower IM Oy in cooperation with Valor Partners Oy.

According to the study 15 min imbalance settlement period can be implemented in Finland in accordance with the schedule stated in legislation, by 18.12.2020. According to the study the transition to 15 min imbalance settlement period can be implemented cost-efficiently and it should be implemented in Finland simultaneously with other Nordic countries to achieve significant benefits.

The Energy Authority released the study in September 2018 and offered stakeholders an opportunity to give feedback about the study and 15 min imbalance settlement period implementation overall. The Energy Authority received 8 opinions.

The Energy Authority is not deciding how 15 min imbalance settlement period should be implemented in detail. According to the Electricity Balancing Guideline, TSO (Fingrid Oyj in Finland) shall apply the imbalance settlement period of 15 minutes by 18.12.2020. Fingrid in cooperation with eSett is currently planning and implementing a solution, that enables the transition to 15 min imbalance settlement period within the schedule stated by legislation. The solution will enable the implementation of 15 min imbalance settlement period without unreasonable changes for distribution system operators and market parties. Datahub (implementation in April 2021, based on current information) will enable the wider use of 15 min measurement data for imbalance settlement.

Almost all stakeholders underlined the common Nordic schedule regarding transition to 15 min imbalance settlement period. According to the information received by the Energy Authority, other Nordic countries will implement 15 min imbalance settlement period in late 2020.

Requirements regarding measurements and details regarding implementation will be governed by national legislation. The Energy Authority is not taking a stand what should be metered in 15 min timeframe. The Energy Authority underlines, that implementation of 15 min imbalance settlement period does not automatically require changing all measurements to 15 min measurement period.


More information: Leading Specialist Jarno Lamponen, tel +358 29 5050 072 and Director Antti Paananen tel. +358 29 5050 013.