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Balance perimeter management
What's a balancing manager?
As a Balancing Manager, Augmented Energy has entered into a contractual agreement with RTE, playing an essential role in the functioning of the electricity market. The balancing manager's mission is to ensure the balance between injections (production and purchases on the markets) and withdrawals (consumption and sales on the markets) within their balancing perimeter. As a participant in the electricity market, it's crucial to either become a balancing manager or appoint one. To satisfy the specificity of your profile and your expectations, Augmented Energy offers you a solution with two distinct options, each tailored to your needs.
What happens in the event of an imbalance for the balancing manager?
The difference between the injected and withdrawn electricity are calculated and billed retrospectively by RTE:
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If injections minus withdrawals are greater than 0, the imbalance is positive. Balancing managers receive financial compensation from RTE, but this represents an opportunity loss, as the price for positive discrepancies is generally lower than the spot price.
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If injections minus withdrawals are less than 0, the imbalance is negative. Balancing managers are then charged by RTE, as the price for negative discrepancies is generally higher than the spot price.
Thus, the balancing manager is incentivized to maintain equality between injections and withdrawals in their balance perimeter to minimize imbalance costs.
For who?
Suppliers
Produceurs
Our solution contains
01
Augmented Energy Portfolio Forecast provides a Day-1 forecast for Profiled and Remote Metered Sites.
As a Balancing Manager, you must perform production and consumption forecasts for your portfolio, based on which you will buy/sell the corresponding volume on the spot market to minimize costs associated with imbalances. Incorrect forecasts can lead to significant discrepancies, resulting in financial losses for your company.
To do this, you need to know, at a half-hourly interval, the amount drawn (i.e., consumed) from the network for each consumer and the production of your portfolio. However, currently, some smaller sites do not have a half-hourly load curve. These are profiled by network operators.
Profiled
< 36kVA
Profiled consumers are small consumers.
Their load curve is estimated.
This estimation provides unavailable real-time data for many consumers.
For the estimation, it is crucial to know their number and their respective Usage Factor (UF), which represents the average power withdrawn over a given period. At each half-hourly interval, this UF in kW must be multiplied by a coefficient determined from the latest weather forecasts to obtain an estimated load curve.
Tele-metered
>36kVA
Tele-metered consumers are larger sites.
Their load curve is based on actual data.
To make forecasts, the historical load curve must be incorporated.
For example, a ski resort will have a different load curve than a food processing plant. In the short term, the Balance Manager adjusts based on the latest weather forecasts, especially if the site is temperature-sensitive."
02
Forward Transactions and Communication with RTE
Augmented Energy manages the submission of Block Exchange Programs (PEB) to RTE.
Like children playing with Duplo bricks, market participants exchange blocks with other market participants. When two parties conduct transactions known as "OTC," outside of an exchange, they must report the exchanged volumes to RTE so that these can be accounted for in their respective balancing perimeters. This is known as a Block Exchange Program (PEB).
For each exchange between two balance responsible parties, each PEB requires a dual declaration, one for each counterparty.
03
Day-Ahead Market Operations
Augmented Energy submits your orders to the spot market.
The balance responsible entity uses the day-ahead market to adjust its positions based on its forecasts of electricity production and consumption for the following day. This allows it to anticipate and correct any potential discrepancies between forward coverage and actual needs.
The day-ahead market serves as the reference price for the electricity market. This market operates at marginal pricing and functions 7 days a week.
Auctions for the day-ahead market occur the previous day (D-1) for all hours of day D. The auction closes at 12:00 p.m., and the exchanges (Epex Spot & Nordpool in France) publish a marginal price around 1:00 p.m., summarizing all orders from European countries in a common order book.
The minimum volume allowed is 0.1 MW, or 100 kW over one hour, with a price increment of 0.1 euros. The day-ahead market’s price floor is -€500/MWh, and the “technical” price ceiling is €4000/MWh.
04
How is the Imbalance Cost Calculated?
Augmented Energy retrieves data from Enedis/RTE to track your imbalances in a simple interface.
The calculation of the Imbalance Settlement Price (PRE) reflects the cost of balancing actions taken by RTE to maintain equilibrium in the French electrical system.
Each month, and for each imbalance settlement period (currently half-hourly), RTE calculates the imbalances for balance responsible entities and charges them at the Imbalance Settlement Price. The total valuation across all settlement periods results in a monthly imbalance invoice.
Before the final reading of indexed consumer meters, balance responsible entities enter the "imbalances" process, during which billing cycles from M+1 to M+12 take place. Each billing period (M+X) can reflect adjustments to the PRE due to refinements and/or corrections to balancing volumes and/or their prices.
Once all indexed consumer meters have been read, a "temporal reconciliation" process recalculates the imbalances for balance responsible entities based on actual metering data. This enables final billing for balance responsible entities in October of year A+2, covering the period from July of year A to June of year A+1. With the completion of the smart meter rollout, the “temporal reconciliation” process will be merged with the imbalance calculation process, and billing will be finalized within M+12.
Augmented Energy supports you in becoming a balancing manager
Augmented Energy offers you a turnkey solution to become a balance responsible entity and manage your operations with ease. Every day, Augmented Energy forecasts your portfolio, submits the corresponding orders to the spot market, and sends Block Exchange Programs (PEB) to RTE. We also retrieve data from Enedis to monitor your imbalances through a simple interface.
For more information or any additional questions, please contact us at: sales@augmented.energy
Our client opinion
" As a specialized supplier in solar self-consumption, we wanted to internalize the activity of Balancing manager. The Augmented Energy's solution allowed us to do this quickly and at a lower cost."
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