The Baltic states have joined the European balancing market platform MARI, creating new business opportunities for electricity market participants

A significant step towards a unified European balancing market is the October 2024 entry of the Baltic transmission system operators AS “Augstsprieguma tīkls” (AST), “Elering,” and “Litgrid” into the European platform for trading manually activated balancing reserves MARI (Manually Activated Reserves Initiative). Participation in this market will offer new opportunities for electricity producers, consumers, and large-scale battery operators in Latvia, Estonia, and Lithuania to provide balancing services to regional transmission system operators. The new balancing market will offer additional revenue opportunities for market participants, while transmission system operators will gain broader access to the resources needed to balance the power system.

“The Baltic transmission system operators’ entry into the European balancing market platform is a strategically planned step towards the disconnection of the Baltic power system from the Russian power grid, planned for February 2025. After disconnection, the so-called Baltic Frequency Control Block will be created, where an independent frequency and balancing system will operate, and the reserves needed to maintain the stable operation of the power system will be provided. This will make the Baltic power system more autonomous, independent, and resilient to various disruptions and operational challenges. Additionally, joining the European balancing market platform will allow the transmission system operator to purchase the necessary balancing reserves in a regional, competitive market at the lowest possible cost, which will have a positive impact on consumer electricity prices,” notes Gatis Junghāns, Member of the AST Management Board.

An important feature of the new balancing market model is that balancing services can be provided using a wide range of technologies, including electricity storage batteries, solar and wind generators, flexible consumption, and more. In the balancing energy market, participants can offer to reduce or increase their production capacity or consumption close to real-time to ensure a continuous balance between electricity production and consumption, for which they will be compensated. 

Since 2018, the Baltic unified balancing energy market platform COBA has operated, where settlements were made hourly. With the Baltic states joining the European MARI platform, the trading interval is reduced to 15 minutes. The existing requirement for a minimum reserve offer for regulation—one megawatt—remains unchanged, but the new interval allows this capacity to be offered for shorter terms. This also allows smaller electricity market participants to enter the balancing reserves market with their offers. In the future, it is planned to implement a 15-minute trading interval for intraday and day-ahead electricity markets as well.

The MARI platform is being implemented across Europe in line with the requirements of the European Commission’s Regulation (EU) 2017/2195, which establishes guidelines for electricity balancing.

With the Baltic states joining the MARI platform, as well as the introduction of the Baltic balancing capacity market in early 2025, the range of balancing providers will expand, creating favourable conditions for new investments in balancing reserve infrastructure. After synchronisation with the Central European Synchronous Area (CESA), Baltic transmission system operators will need to independently ensure frequency regulation and the continuous, precise balancing of consumption with electricity supply. This, along with the rapid connection of wind and solar power plants to the grid, will increase the amount of balancing reserves required by transmission system operators for the stable operation of the power system. Therefore, AST, in cooperation with the Estonian and Lithuanian transmission system operators, is introducing a regional market where operators will purchase the balancing capacity reserves needed for the operation of the electricity transmission system.

About JSC "Augstsprieguma tīkls"

AST, the Latvian electrical power transmission system operator, ensures uninterrupted and secure transmission of electricity throughout Latvia. Its vision is to become the leading transmission system operator in the region through the efficient and successful implementation of development-oriented changes. AST has 68.46% shareholding in the capital of the operator of the natural gas transmission and storage system AS “Conexus Baltic Grid”.