Balancing Service Agreement
The remaining contract is with an electricity supplier who wishes to obtain the compensation service from the transmission system manager and who becomes a balance manager. The residual contract contract is concluded prior to the provision of balancing services to an electricity supplier. The agreement contains provisions on the following aspects of cooperation: the standard conditions of the Elering balance sheet agreement, as approved by the competition authority, are attached to the balance sheet agreement. As of 1 January 2020, the agreement provides for forecasting, negotiating and clearing services for the total wind energy production of TuuliWatti in Finland. Currently, the company`s wind turbine portfolio has an installed capacity of 441 MW and an annual production of approximately 1.3 TWh, or 20% of Finland`s annual wind generation in 2019. The clearing service contract is concluded with the operator of the electricity market who wishes to obtain the compensation service of the transmission network manager. The agreement contains provisions on the following aspects of cooperation: Vattenfall offers a full range of energy services to renewable electricity producers and large consumers in all the Nordic and Nordic countries of Northern Europe. Vattenfall helps customers take advantage of the electricity market and exploit the risk profile they wanted. The open delivery between Fingrid and a party responsible for the balance is agreed by a balance service contract, the conditions of which are public and equal to all. In addition, the responsible party signs a compensation agreement with eSett Oy (for more information, see www.esett.com). With the signing of the compensatory compensation agreement, the responsible party receives, in addition to an open delivery, services related to the imbalance compensation scheme between the responsible party, Fingrid and eSett. „The agreement with TuuliWatti is entirely in line with Vattenfall`s desire to become a leading provider of renewable energy services for corporate customers in Europe. This agreement is perfectly within the scope of our existing portfolio and is an important step for Vattenfall to enter the Finnish energy services market,“ says Johan Hagsten, Director of Nordic Origin at Business Area Markets at Vattenfall.
To function properly, an electrical grid must maintain a certain frequency, either 50 or 60 Hz. You`ll find a more detailed overview in our knowledge article on network frequency. The difference between frequency and required value depends on the correlation between diet and consumption. If too much electricity is generated (or not consumed enough), the frequency increases. If enough electricity is not produced (or if too many consumers require too much electricity), the frequency decreases. Beyond a certain threshold (-0.2 Hz), a blackout is eminently important. To avoid such a scenario, network managers (transportation network managers (TSOs) in Europe use offset energy. This offset energy is an energy or production capacity that is added or removed from the grid if the frequency is too far from the stable level. It is quite complicated to talk about the overall balance of service markets in general, because it is done in several ways depending on the approach of the network manager or the organization of the electricity market.