Balancing Services Provider (BSP) is an entity operating in the electricity market, tasked with supporting the Transmission System Operator (TSO) in maintaining the power balance within the electricity system. This is achieved by delivering balancing services, such as providing additional power during energy shortages or reducing consumption during periods of surplus.
Key Responsibilities of a BSP
- Maintaining Power Balance - Ensuring equilibrium between electricity demand and supply in real-time.
- Responding to Deviations - Correcting deviations from planned values to minimize disruptions in the operation of the power system.
- Providing Flexibility Services - Being ready to quickly adjust generation or consumption in response to grid operator requirements.
Types of Balancing Services
- Frequency Containment Reserve (FCR) - An automatic response of generation units to frequency changes in the grid, achieved within 30 seconds.
- Automatic Frequency Restoration Reserve (aFRR) - Dynamically adjusting power generation or consumption to changes in demand, implemented on a minute-scale.
- Manual Frequency Restoration Reserve (mFRR) - On-demand services provided by the TSO to address emergencies or supplement reserves.
- Replacement Reserves - Maintaining additional available capacity by BSPs as per agreements with the TSO, for use in critical situations.
Entities Acting as BSPs
- Power Producers - Conventional power plants, renewable energy sources, or cogeneration units capable of regulating their output.
- Large Industrial Consumers - Can provide balancing services by reducing or shifting their energy consumption.
- Aggregators - Intermediaries managing groups of smaller generating or consuming units to collectively provide balancing services.
- Energy Storage Systems - Play a vital role in quickly filling power gaps or storing excess energy.
Benefits of BSP Activities
For the Electricity System - Enhanced stability and security of energy supply. Improved integration of renewable energy sources through increased flexibility.
For BSPs - Additional revenue streams from providing balancing services. Strengthened market position in a rapidly evolving energy market.
For the Environment - Optimized system operation reduces the need to activate fossil-fuel-based emergency energy sources.
Challenges for Balancing Service Providers
- Technological - Development of infrastructure, including real-time control and communication systems.
- Regulatory - Meeting the requirements set by the TSO and complying with national and European regulations.
- Economic - Ensuring profitability in a dynamic energy market environment.
The Future of BSPs
The role of Balancing Service Providers will grow as the share of variable renewable energy sources increases and energy storage technologies evolve. Introducing flexible solutions and fostering collaboration between different market entities will be crucial to ensuring the reliable and efficient operation of the power system.
