Market participants assume financial responsibility towards the Market Operator for the settlement of energy imbalances and imbalances on a settlement period basis. The market participant assuming this financial responsibility is called the balance responsible party.
The concept of the group responsible for balance refers to the group that is formed by the market participants by notifying the Market Operator and that a market participant within the group undertakes the obligations regarding the responsibility for balance on behalf of the group.
Thanks to the group mechanism responsible for balance, market participants can come together to create a portfolio in a way that reduces the total imbalance amounts. Thus, it is aimed that they will be exposed to less imbalance with the balancing they will make within their own groups.
In order to prevent imbalance, each market participant works to keep the traction amounts and supply commitments of the consumption points equal to the production and purchases it carries out within its own structure. Market participants first use the Day Ahead Market to address the shortfall or redundancy in their portfolios. If the portfolio cannot be balanced in the Day Ahead Market, the relevant market participant has the opportunity to balance his portfolio by trading in the Intraday Market.
In the event that the balancing cannot be realized as a result of the transactions made in the Intraday Market, the participants will have to eliminate the imbalance between their demand and production by buying or selling with penalty through the Balancing Power Market. For example, while a market participant must sell the electricity that is in excess of its consumption below the market price, if the consumption is higher than the production, it has to supply the production deficit at a price above the market price. As can be seen, eliminating portfolio imbalances can create a serious financial burden on market participants. With the mechanism for group responsible for balance, market participants are offered the opportunity to reduce their imbalances and earn additional income.
Some of the participants in the market have a high production and low consumption portfolio. This situation is also defined as the sales position. Some participants have a low production and high consumption portfolio, and their current situation is described as a buying position. In this context, market participants who have a buying and selling position will be able to balance their portfolios within the scope of the group mechanism responsible for balance before the Day Ahead Market > Intraday Market > Balancing Power Market process; and the existing imbalances of the participants who have an opposite position with each other will be mutually absorbed.
Consider the X market participant whose electricity production is 100 units, and the total consumption of consumption points is 20 units, and the Y market participant whose production is 30 units and consumption is 70 units. In the scenario where neither participant transacts over the Day Ahead and Intraday Markets, Participant X will fall to 80 units of positive imbalance in the Balancing Power Market, while Participant Y will fall to 40 units of negative imbalance. However, when the X and Y participants are each other’s balance group, the 40-unit production deficit of the Y participant will be absorbed by the 80-unit production surplus of the X participant. Thus, the imbalance of the group responsible for the balance consisting of X and Y will be 40 units of positive imbalance. In this context, an efficiency of 80 units will be provided.
Market participants who benefit from the synergy of the group responsible for balance both reduce their own costs and contribute to other participants in their group. In short, the group responsible for the balance can be defined as a system in which all parties mutually gain. The creation of large group responsible for balances with members of different characters such as renewable energy producers, industrial facilities with high electricity consumption amounts, market participants with cogeneration power plants will provide the most benefit from the group responsible for balance system.
VTC Enerji’s Balance Responsible Group
VTC Enerji manages its own Balance Responsible Group in order to reduce the imbalance costs incurred by market participants. It adds value to the market participants in its group with the win-win principle with the synergy it creates in a wide portfolio including eligible consumers.
As VTC Enerji, we take care to manage our group responsible for balance in a way that will provide the highest advantage to our participants with the support of our analytical tools. In our group with an annual volume of 2,000,000 MWh, we have provided an average of70% advantage to our participants in 2021. The VTC Enerji Balance Group, which makes a difference in the sector with its transparency, equality and reliability principles, continues to grow with new members selected in accordance with its own needs.
Senior Product and Budget Engineer