Balancing and other ancillary services

generation_BW.jpg

Balancing service is an ancillary service under which the balancing market participants, following the procedures laid out in the Ancillary service agreement, increase or reduce the electricity production (capacity) in their power generation facilities, deliver stored electricity to the system, provide a demand response service, or ensure the availability of balancing capacity.

Since October 2024, the Baltic transmission system operators (TSOs) have joined the European balancing energy exchange platform – MARI (more information here). Subsequently, in April 2025, the Baltic TSOs joined the PICASSO platform (more information here). These platforms for balancing energy exchange are being implemented throughout Europe in accordance with the requirements of Commission Regulation (EU) 2017/2195, which establishes the Guideline on Electricity Balancing. MARI and PICASSO are platforms enabling the functioning of an integrated European balancing market for, respectively, manually activated frequency restoration reserves and automatically activated frequency restoration reserves. Participation in these platforms not only ensures market functionality and access to a unified regional market but also allows optimization of the total amount of reserves used, thereby reducing balancing costs.

Since February 2025, the Baltic TSOs have organized a joint Baltic Balancing Capacity Market, where the required reserve capacities – including frequency containment reserves (FCR) and frequency restoration reserves with automatic and manual activation – are procured daily from balancing market participants to ensure stable and secure system operation.

Balancing service can be provided by a market participant whose portfolio includes power plants, storage systems or demand facilities that are declared as prequalified for providing the balancing service by JSC Augstsprieguma Tīkls (hereafter – AST) on the basis of requirements included in the decision of Public Utilities Commision of Latvia on 26 June 2013 " Electricity Sector Network Code”" (hereafter – Network Code) and AST requirements in accordance with 2.3. paragraph of Annex 8 of Network Code.

In addition, all balancing service providers are bound by the rules for the balancing market:

+ System ancillary service agreement

The Ancillary service agreement is signed with a market participant who wishes to provide balancing services to the transmission system operator. The agreement includes provisions for the following aspects of cooperation:

  • procedure of balancing service provision;
  • procedures of  balancing energy trading due to activations of balancing products, between the transmission system operator and the balancing service provider;
  • provisions for balancing capacity trading;
  • data exchange procedure;
  • settlement procedure;
  • procedure for development and approval of standard terms and conditions for the provision of balancing services under the Ancillary service agreement and Technical and data exchange requirement for reserve units.
Rules for Providing the Balancing Service under the System Ancillary Service Agreement

According to the Ancillary service agreement, the Rules for Providing the Balancing Service under the System Ancillary Service Agreement are binding for all balancing service providers. The terms and conditions include provisions for the following aspects of cooperation:

  • general provisions – the objective, definitions of terms used in the agreement and related documents;
  • the procedure of the submission of balancing energy product bids;
  • balancing energy bid activation;
  • submission of consumption and generation schedule;
  • provision of submetering data;
  • submission of reports;
  • balancing pricing mechanism;
  • the procedure for determination and reconciliation of energy volumes delivered via bid activation;
  • prequalification procedure for reserve units and declaration of prequalification.
Technical and data exchange requirements for reserve units

Only reserve units that are compliant with the Technical and data exchange requirements and have received a declaration of prequalification issued by the transmission system operator can be used for provision of balancing services. The Technical and data exchange requirements include:

  • General data exchange requirements;
  • Requirements for data exchange between AST and the balance service provider;
  • Submetering requirements;
  • Commercial metering requirements;
  • General technical requirements for reserve units;
  • Requirements for composition and usage of reserve units;
  • Procedure for initial and re-qualification of reserve units;
Agreement template and rules
Agreement template and rules (in force from December 1, 2025)
+ Archive: System ancillary service agreement, Balancing market rules
Agreement template and rules (in force from March 28, 2025)
Agreement template and rules (in force from 29 January 2025):
Agreement template and rules (in force from 13 January 2025):
Agreement template and rules (in force from joining the MARI platform in October 2024 until 13 January 2025):
Agreement template and rules (in force until joining the MARI platform in October 2024):
Agreement template and rules (in force until 22 August 2024):
Agreement template and rules (in force from 17 August 2022 until 30 April 2023):
Previous versions of terms and conditions:
Balancing market rules :
Baltic balancing market rules (effective from 1 January 2022 to joining the MARI platform in October 2024):
+ Balancing service providers in Latvia
TitleRegistration NoEIC
Latvenergo, AS4000303294943X-T-LATVENER-K
RĪGAS SILTUMS, AS4000328675043X-STJ00001829G
Moduss Holding, SIA5020306885143X-TG-MHO00044Y
TCK, SIA4000376628443X-STJ00714015Q
VIRŠI Renergy, SIA4540305840261XGT-VIRSIREN-0
Gren Latvija, SIA4010385435243X-TG-FORTUM06N
AOX Trade, SIA4020334396743X-TG-AOX00060P
AJ Power, SIA4010378069343X-T-AJP00010-1
Ignitis Latvija, SIA4010364299143X-T-ETIEKIMA-N
Enerom, SIA4020355092243X-STJ026746023
Nākotnes Saule, SIA4360309254943X-STJ02559957Y
Scener, SIA4000382537643X-T-ENEAVOTS-X
PowerFlow Trade, SIA4020356400043X-STJ02678082K
Bohner, SIA4010363701143X-STJ02685723H
Centrica Energy Trading A/S2029319511XNEAS--------Q
Enefit, SIA4000382404643X-T-ENEFIT00-T
Capalo AI Oy3268277-144X-00000000248K
SunlyHz, SIA4020341287943X-STJ02694714H
Greenline Energy Plus, SIA4010384956343X-STJ02614922L
Engycell, SIA4020360768743X-STJ026934113
Energy lead, UAB30698543341XENERGYLEAD--G
Vēja parks 10, SIA4000347994343X-STJ00013165O
+ ReU capacities that are declared as technically compliant for the provision of balancing service

Balancing product

ReU total capacities that are declared as technically compliant for the provision of balancing service

(updated 04.11.2025.)

Upwards balancing, MW

Downwards balancing, MW

FCR

181

aFRR

611

612

mFRR

1842

1836