Avoid national grid failures
Electricity cannot be stored in large amounts. All electricity that is consumed therefore also needs to be produced in real-time. Any imbalance, or difference between consumption and production, incurs costs and can even result in national grid failures in the case of large discrepancies.
Forecasting production and consumption
To avoid national grid failures, balance responsible parties are obliged to use daily energy and transport reports to announce how much electricity they are going to place on the national grid the following day, who is going to buy the electricity, who will produce it, and which networks it will be transported over. The national electricity network operator (Elexon in the United Kingdom, TenneT in the Netherlands and Elia in Belgium) receives this information via specific protocols from the balance responsible parties, and monitors the balance on the national grid, day and night.
Coping with shortage and surplus
The national network operator uses real-time measurements to ensure that shortages or surpluses are compensated by contracted power stations. The greater the shortage, the higher the price the national network operator has to pay to the producer who makes up for it. And it works the other way round in the event of a surplus: the greater the surplus, the lower the price the national network operator receives from the producer who covers it. Both situations (shortage and surplus) result in largely fluctuating imbalance prices.
Avoid imbalance surcharges
Every day the national network operator calculates the relevant imbalance price to charge whoever was responsible for the discrepancy. Completely avoiding an imbalance is virtually impossible; it’s up to the balance responsible parties to keep these imbalances as low as possible to avoid surcharges.
Role of PVNED
PVNED is a certified balance responsible party in Belgium, the Netherlands and the United Kingdom. We can take care of this administrative task for you while at the same time providing an imbalance pool to ensure that our clients keep their imbalance surcharges to a minimum.