Transmission system operator is responsible for the security and stability of the electric power system. This includes ensuring a constant balance of the electric power generated and consumed. Deviations from the balance cause system imbalance. The indicator of power system balance is the electric power frequency. In the Baltic states, under normal operation state, the frequency should be within the range of 49.95 to 50.05 Hz.
Transmission system operator ensures the electric power balance using a regulation service. There are three types of system regulation:
- Frequency containment reservers (FCR) - automatic regulation of generation and/or consumption to avoid momentary frequency deviations.
- Frequency restoration reserves (FRR) - automatic regulation of generation or consumption if the frequency is not restored within a few minutes from the employment of the FCR. Upon employment of the FRR, the FCR are released for the use of further disruptions.
- Replacement reserves (RR) - manual frequency regulation in generation and/or consumption if additional regulation is required after the FRR.
Transmission system operators manage system imbalance by activating reserves offered by balance service providers. These energy products are exchanged via balancing market operated by transmission system operators.
To participate in the Baltic Balancing Market, a market participant have to have an ancillary service agreement with the transmission system operator. Read more here.