Renewable energy is leading to a decrease in the amount of electricity production capable of providing regulation capacity.
The power system is transitioning to a shorter imbalance settlement period to make it easier to maintain balance in the power system as part of a move towards a more real-time electricity market.
The transition to a 15-minute trading and imbalance settlement period will take place in phases, beginning in May. Finland’s imbalance settlement system will transition to a 15-minute resolution on 22 May 2023.
“The sector is ready for the change, as operators have had plenty of time to prepare. Datahub has accepted metering data with a 15-minute resolution since the start of January, and some network operators have already begun submitting 15-minute measurements,” says Meri Viikari, Project Manager at Fingrid.
The Government Decree specifies the facilities that must be covered by 15-minute metering from May 2023 onwards. The transition period for all other sites is until the end of 2028.
Trading will switch to 15-minute periods in the following phases
The electricity wholesale markets maintained by electricity exchanges will switch to a 15-minute trading period in the coming years. The 15-minute trading period will enable more accurate, market-based balancing of the power system.
“When the 15-minute imbalance settlement period comes into force, balance responsible parties will see their imbalances in 15-minute periods. However, the imbalance price will be the same for every 15-minute period of each hour during the first phase of the transition,” Viikari says.
During the transition period, operators will have time to adjust their operations in preparation for 15 minute imbalance pricing and trading periods, which will be introduced later.
“When imbalances are examined in 15-minute periods, operators can improve the accuracy of their forecasts. As a result, maintaining the balance in the power system will become more effective and market-oriented.”