Amended description of the Baltic Balancing Capacity Market optimization algorithm

Public consultations

AS "Augstsprieguma tīkls" together with the other Baltic TSOs – Litgrid AB and Elering AS, and the TSOs of the Baltic Capacity Calculation Region (CCR) have jointly developed proposals necessary for the establishment of the Baltic Balancing Capacity Market:

  • Baltic Balancing Capacity Market Rules in accordance with Article 33(1) and Article 38(1) of Regulation (EU) 2017/2195 of the European Commission of 23 November 2017 establishing a guideline for electricity balancing;
  • Baltic CCR Methodology on Market-Based Allocation of cross-zonal capacity allocation for the exchange of balancing capacity or sharing of reserves in accordance with Article 41 of Regulation (EU) 2017/2195 of the European Commission of 23 November 2017 establishing a guideline for electricity balancing.

The updated versions of the methodologies have been previously published and are available here: https://www.ast.lv/en/events/corrected-baltic-ccr-market-based-methodology-cross-zonal-capacity-allocation-exchange

Considering the planned launch of the Balancing Capacity Market, the Baltic TSOs, together with the developers of the technical solution required for the operation of the market, have prepared a description of the Baltic Balancing Capacity Market algorithm, and publish it in accordance with the requirements of Article 12(3)(k) of Regulation (EU) 2017/2195 of the European Commission of 23 November 2017 establishing guideline for electricity balancing.

An amendment has been made to ensure greater algorithm result economic surplus maximization by avoiding occasional selection of excess capacity.

The changes to the market algorithm according to this description will take effect on 31st October 2025, in alignment with the Capacity market rules' Article 14(1)(b).

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