Balancing Terms and Conditions (BTC) are a key element of the regulations governing the Balancing Market in Poland, developed by Polskie Sieci Elektroenergetyczne (PSE). Their main objective is to ensure a balance between the supply and demand for electricity, which translates into the stability and security of the national power system. The Balancing Terms and Conditions are the foundation for the introduction of modern balancing mechanisms that respond to the challenges arising from the energy transition and the integration of renewable energy sources.
Key aspects of the Balancing Terms and Conditions
- Structure of the balancing market by entity and by facility: The BTC define the roles of market participants and categories of facilities, such as Balance and Schedule Units, enabling more precise energy management.
- Balancing services catalogue: Includes new service categories such as frequency containment reserve, frequency restoration reserve and replacement reserve, which support the stability of the power system.
- System planning process: This introduces rules for the reporting of commercial and technical data by market participants and the integration with European platforms for the exchange of balancing energy.
- Valuation and settlement of balancing energy: These rules include 15-minute settlement periods, which increases the accuracy of valuation and the efficiency of imbalance management.
Reform of the balancing market
BTC are part of a broader reform of the balancing market, which has been divided into two stages. The first stage enabled the demand side response (DSR), non-centrally dispatched generating units (nJWCD) and energy storage facilities to actively participate in the balancing market. The sign convention in the balancing market was also changed to meet the requirements of the European EBGL regulation.
The second stage of the reform, which came into force in 2024, introduced new rules for participation in European energy exchange platforms and modified the facility structure and balancing services catalogue. These changes are aimed at harmonising the Polish market with EU standards and improving the efficiency of the electricity system.
Benefits of the BTC
The Balancing Conditions are intended to encourage market participants to be more flexible in adjusting energy consumption or production to the current needs of the system. This makes it possible to:
- Better utilise renewable energy sources.
- Reduce operating costs for industrial customers.
- Improve the stability of the power grid.
- Integration of the Polish market with European balancing mechanisms.
Introduction BTC is a step towards modern energy management that supports the energy transformation and ensures more efficient functioning of the power system both at the national and international level.
