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Power generated into the grid cannot be stored – it needs to be consumed as soon as it is generated. 

Power generation must thus equal consumption at any given time. In order to ensure that this is the case, generating companies and suppliers prepare detailed day-ahead schedules for their transactions. The schedules state that the amount of electricity they intend to generate or purchase for the next day equals their intended sale to customers or other power companies.

Balancing responsibility

In this context, generating companies and suppliers are referred to as Balancing Responsible Parties (BRPs). Although a BRP submits to Landsnet a schedule that is in balance for the next day, deviations often occur in practice as power consumption cannot always be predicted exactly. This is partly due to deviations in power generation, for instance when power stations’ generating units suddenly fail and power output falls. 

Balancing energy market

One of our key roles is to administer system operations, which includes maintaining a balance between power generation and demand.

We must be able to meet imbalances swiftly by asking generating companies to increase or reduce output in line with consumption at each moment. We do this by operating a balancing energy market and having balancing energy available for customers to offset any imbalances between generation and consumption in real-time operations.

We procure the balancing energy and handle settlements with the BRPs. The balancing energy is procured in the regulating power market and priced at market rates for each hour.