The Baltic TSOs plan to launch a common Baltic balancing market by 2018. As a prerequisite, the Baltic countries must harmonize and adopt a common set of imbalance settlement arrangements beforehand. The goal is to develop unified, transparent conditions to all market participants which should in effect level the playing field for all market participants throughout the Baltics, foster competition and thus enhance the Baltic electricity market’s efficiency.

In August 2015, Elering procured a balance management harmonisation study from consultancy service provider Pöyry Management Consulting to carry out an in-depth analysis on a harmonised balance management model most suitable for the Baltic balance system. The study, titled "Baltic's balance management model study and harmonisation plan towards EU energy markets model" delves into different balance model aspects, describing possible alternatives in terms such as the number of balance portfolios, the cost structure for covering balance service, and different pricing methodologies for imbalance energy etc. The study was prepared in close collaboration with all three Baltic TSOs (Elering, Augstsprieguma tīkls and Litgrid) during 08.2015 – 04.2016.

As a next step, the Baltic TSOs will compile a joint public consultation document on the balance model harmonisation, which in turn will be forwarded to the balance providers. After evaluating the feedback on the public consultation document, the Baltic TSOs shall make the decision on the Baltic harmonised balance model by the end of the year. The rules however will come in to effect in the beginning of 2018.

According to the BEMIP (Baltic Energy Market Integration Plan), one of the most important steps of the Baltic-Nordic electricity market integration is the establishment of a common balancing power market with harmonised balancing principles and pricing rules. It is essential that the new rules and principles are in accordance with the requirements set forth by the ENTSO-E Network Code on Electricity Balancing, and in addition, be compatible with the model applied by the Nordics.

The integration of the two balancing markets is scheduled for 2020.

Documents: Baltic's balance management model study and harmonisation plan towards EU energy markets model (including Nordic-Baltic balancing cooperation)