Nordic Market Based Balancing System

Challenge

With the increasing amounts of renewable energy (RE) in the Northern European electricity system, there is a need for (and opportunities in) market participants to engage more actively in the balancing market to achieve an economically optimal integration of green energy.

Market participants selling RE electricity currently need better market transparency, and this need will only grow with the integration of RE and Power-to-X technology. Power-to-X can serve as a buffer in the electricity system, but it will require a better overview of balancing in the electricity system to act optimally and economically rational.

Solution

The project develops forecasting models for imbalances and imbalance prices in the Nordic electricity system, as well as electricity trading strategies - both in terms of selling wind energy and hydrogen production.

Impact

• A better overview of imbalance prices in the electricity system could realize up to a 25% reduction in production costs for Power-to-X and other flexible electricity-consuming units.
• Optimized and cost-efficient Power-to-X operations will stimulate increased market uptake of hydrogen and green fuels, leading to faster and larger-scale expansion of Power-to-X and renewable energy in the electricity system.