ESA approves for Norway methodologies for the electricity balancing market

The EFTA Surveillance Authority (ESA) has approved for Norway technical methodologies for the design and operation of the electricity balancing market. The methodologies aim to contribute to the stability of the European electricity system.

Balancing the supply and demand for electricity helps ensure stability in the grid system. To maintain grid balance in real time, transmission system operators (TSOs) adjust the amount of electricity in the grid. It does so by activating balancing energy services from various actors along the energy supply chain. These include generators, storage providers or others who can quickly increase or reduce the amount of electricity they feed into the grid.

Such sharing of electricity balancing across the EEA strengthens resilience of the electricity market and reduces costs. The Electricity Balancing Regulation became binding in Norway in August 2021. Following this, Statnett, the Norwegian TSO, has submitted proposals to NVE-RME, the Norwegian energy regulator, related to the balancing market.

The Electricity Balancing Regulation aims at integrating the electricity balancing market through common European platforms for balancing services.

On 26 March, NVE-RME asked ESA to decide on the implementation frameworks for two platforms for the exchange of balancing energy from frequency restoration reserves: one with manual activation (mFRRIF), and another with automatic activation (aFRRIF). On 4 July 2024, it also asked ESA to decide on a proposal for classifying the activation purposes of balancing energy bids on the platforms ('activation purposes methodology').

ESA has assessed the proposals in cooperation with the EU Agency for the Cooperation of Energy Regulators (ACER), and has taken its decisions based on drafts from ACER. This was done in accordance with the procedure established under the EEA Agreement. ESA consulted NVE-RME between 4 and 11 September 2024.

The efficient operation of the European platforms is important to increase the liquidity on the electricity balancing market. This ensures better coordination across Europe and reduced costs for consumers.

ESA's decisions will be addressed to NVE-RME, which has responsibility for implementation at the national level.

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