Rules on balancing in

Lithuania

2018.01.01

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Starting from January 1st, 2018, the Baltic transmission system operators shall establish the function
of common coordinated balance control i.e. the power systems of Estonia, Latvia and Lithuania
shall be regarded as a single coordinated balancing area (CoBA), with one Baltic transmission
system operator being responsible for minimizing the Baltic total ACE with manual frequency
restoration reserves activated from the Baltic CMOL.

Terms
Already allocated capacity (AAC) - the total amount of allocated transmission rights;
AC imbalance flow - the difference between the AC scheduled and AC actual measured flow exchange of
power system (includes imbalance netting volume);
Accounting period - the time period for which the settlement is made. The accounting period is one calendar
month in EET;
Allocated volume - an energy volume physically injected or withdrawn from the system and attributed to a
balance responsible party for the calculation of the imbalance of that balance responsible party;
Area control error (ACE) - the difference between measured physical flow and final external schedules of
coordinated balancing area during imbalance settlement period in MWh-s;
Balance responsible party (BRP) - market participant or its chosen representative responsible for its
imbalances;
Balancing - all actions and processes, on all timelines, through which TSOs ensure, in a continuous way, the
maintenance of system frequency within a predefined stability range, and compliance with the amount of
reserves needed with respect to the required quality;
Balancing energy - energy used by TSOs to perform balancing and provided by a balancing service provider;
Balancing energy gate closure time (GCT) - the point in time when submission or update of a balancing
energy bid for a standard product on a common merit order list is no longer permitted;
Balancing market - the entirety of institutional, commercial and operational arrangements that establish
market-based management of balancing;
Balancing services - balancing energy or balancing capacity, or both;
Balancing service provider (BSP) - a market participant with reserve-providing units or reserve-providing
groups able to provide balancing services to TSOs;
Baltic ACE - the Baltic’s not netted imbalance, which is settled through the trade of imbalance energy with
the open balance provider of the Baltic power system;
Baltic coordinated balancing area (Baltic CoBA) - a cooperation between TSOs of Estonia, Latvia and
Lithuania with respect to the exchange of balancing services, sharing of reserves, operating the imbalance
netting process and imbalance settlement;
Baltic CoBA imbalance position - the direction of all Baltic BRPs’ imbalances in a given ISP;
Baltic not netted imbalance - the Baltic’s not netted imbalance, which is settled through the trade of
imbalance energy with the open balance provider of the Baltic system;
Baltic power system - the power systems of Estonia, Latvia and Lithuania;

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Baltic TSOs - the transmission system operators for electricity of Estonia, Latvia and Lithuania;
Common merit order list (CMOL) - a list of balancing energy bids sorted in order of their bid prices, used
for the activation of balancing energy bids within a coordinated balancing area;
Connecting TSO - the TSO that operates the scheduling area in which balancing service providers and
balance responsible parties shall be compliant with the terms and conditions related to balancing;
Cross-border interconnection - a physical transmission link (e.g. tie-lines) which connects two power
systems;
Cross-zonal capacity within the balancing timeframe (CZCBT) - the capability of the interconnected
power systems to accommodate energy exchange for balancing purposes among Estonian, Latvian,
Lithuanian power systems and from Finnish, Swedish, Polish, Russian and Belarusian power systems as well
as the capability of energy exchange for balancing purposes from Estonian, Latvian, Lithuanian power
systems to Finnish, Swedish, Polish, Russian and Belarusian power systems. Cross-zonal capacity within the
balancing timeframe has to always include the direction whether it is from or to the relevant power system,
i.e. up activation or down activation;
Deactivation period - the time period for ramping, from full delivery or withdrawal back to a set point;
Delivery period - the time period of delivery during which the balancing service provider delivers the full
requested change of power in-feed to or the full requested change of withdrawals to the system;
Divisibility - the possibility for the TSO to use only part of the balancing energy bids offered by the balancing
service provider, either in terms of power activation or time duration;
Downward activation - balancing energy bid activation in order to reduce generation or increase
consumption;
Emergency reserve (ER) mFRR - the specific upward mFRR that is maintained by TSOs in accordance
with multi party agreements and national requirements;
Exchange of balancing energy - the activation of balancing energy bids for the delivery of balancing energy
to a TSO in a different scheduling area than the one in which the activated balancing service provider is
connected;
Full activation time - the time period between the activation request by a TSO and the corresponding full
activation of the concerned product;
Imbalance - an energy volume calculated for a balance responsible party and representing the difference
between the allocated volume attributed to that balance responsible party and the final position of that balance
responsible party, including any imbalance adjustment applied to that balance responsible party, within a
given imbalance settlement period;
Imbalance adjustment - an energy volume representing the balancing energy from a balancing service
provider and applied by the connecting TSO for an imbalance settlement period to the concerned balance
responsible parties, for the calculation of the imbalance of these balance responsible parties;
Imbalance price - the price, positive, zero, or negative, in each imbalance settlement period for an imbalance
in each direction;
Imbalance settlement - a financial settlement mechanism for charging or paying balance responsible parties
for their imbalances;
Imbalance settlement period (ISP) - the time unit for which balance responsible parties’ imbalance is
calculated and is equal to 60 min;
Internal net imbalance energy volume - the difference between the AC scheduled, AC actual measured
and imbalance netting flow exchange of power system and shall be equal to internal imbalance volume of
BRPs (netted per direction);

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Internal total imbalance energy volume - imbalance volume of the system based on internal BRP
imbalances per directions for short and long;
Marginal pricing - a principle according to which the price of the last activated balancing energy bid
following merit order applies to all activated bids during the particular imbalance settlement period (pay-as-
cleared);
Manual frequency restoration reserves (mFRR) - the active power reserves activated manually to restore
system frequency to the nominal frequency and for synchronous area consisting of more than one LFC area
power balance to the scheduled value;
Measured AC balance - measured flow on AC cross-border metering points of power system;
Merit order list (MOL) - a list of balancing energy bids of a Connecting TSO’s control area by product
sorted in order of their bid prices;
Nominated TSO - assigned TSO, who is responsible for initiating activation of balancing energy bids in
normal system operation state with purpose to minimize Baltic ACE;
Normal activation - activation of balancing energy bids for Baltic CoBA balancing purposes with aim of
minimizing the Baltic ACE;
NTC - net transmission capacity of the designated cross-border interconnections is the maximum trading
capacity, which is permitted in transmission cross-border interconnections compatible with operational
security standards and taking into account the technical uncertainties on planned network conditions for each
TSO;
Open balance provider (OBP) - electricity trader or transmission system operator, which provides power
system balancing services to the Baltic CoBA;
Position - the declared energy volume of a balance responsible party used for the calculation of its imbalance;
Preparation period - the time duration between the request by the TSO and start of the energy delivery;
Responsible TSO - TSO, who performs the calculation of cross-zonal capacity within the balancing
timeframe;
Requesting TSO - the TSO that requests the delivery of balancing energy;
Scheduled AC balance - fixed energy flow from day ahead, intra-day markets and balancing activities on
AC cross-border interconnections of power system;
Settlement coordinator - a TSO that is responsible for carrying out Baltic CoBA settlement, and for the
trade of Baltic not netted imbalance energy with the OBP;
Single portfolio - grid injection and offtake volumes are netted into a single balance responsible party’s
account;
Single pricing - a single imbalance price for system shortage and system surplus;
Standard product - a harmonised balancing energy product defined by all TSOs for the exchange of
balancing services;
Special activation - activation of balancing energy bids for other purposes than Baltic CoBA balancing
purposes and can be specified as special activation countertrade or special activation other;
Specific product - a balancing energy product different from a standard product;
TSO - a transmission system operator for electricity;
TSO-TSO model - a model for the exchange of balancing services where the balancing service provider
provides balancing services to its connecting TSO, which then provides these balancing services to the
requesting TSO;

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Total transfer capacity (TTC) - total transfer capacity of the designated cross-border interconnections is
the maximum transmission of active power, which is permitted in transmission cross-border interconnections
compatible with operational security standards applicable for each TSO;
Upward activation - balancing energy bid activation in order to increase generation or reduce consumption;
Validity period - the time period when the balancing energy bid offered by the balancing service provider
can be activated, whereas all the characteristics of the product are respected. The validity period is defined
by a beginning time and an ending time.

Baltic balancing market rules

I Objective and Scope

The objective of the Baltic balancing market rules is to determine terms and conditions that are applicable
for BSPs in order to participate in the Baltic balancing market and provide balancing energy upon connecting
TSO’s request and that are binding for each connecting TSO in order to ensure the participation of BSPs in
the Baltic balancing market.
This document is publicly available Annex of Baltic TSOs’ Agreement on the operation and settlement of
the Baltic coordinated balancing area (hereinafter – Baltic TSOs’ Agreement). The breach of the Baltic
balancing market rules is not considered as a breach of the Baltic TSOs’ Agreement. All disputes arising out
of non-compliance with these rules shall be settled between the BSP and relevant TSO on a national level.
All definitions and abbreviations used in this document must be applied and used as defined in Annex 1 of
Baltic TSOs’ Agreement. Annex 1 is publicly available.

II Baltic balancing market framework

1. The Baltic TSOs – Elering AS, AS “Augstsprieguma tīkls”, LITGRID AB shall organize and operate
common Baltic balancing market.
2. In order to operate common Baltic balancing market and exchange balancing energy, Baltic TSOs shall
apply TSO-TSO model pursuant to relevant European Commission regulations and guidelines, national
legal framework of each Baltic country and mutual TSO-TSO agreements.
3. The Baltic TSOs are responsible to exchange the balancing energy in order to ensure the operational
security and to maintain the balance in Baltic power systems. At the same time, each Baltic TSO remain
responsible for maintaining operational security of its control area.
4. All Baltic TSOs shall cooperate to maintain balance within CoBA and minimize Baltic ACE.
5. ISP for Baltic CoBA is 60 minutes.
6. All Baltic TSOs shall use the following balancing energy products:
6.1. Baltic mFRR standard product from BSPs within Baltic CoBA;

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 6.2. mFRR standard products from BSPs outside Baltic CoBA that are compatible with Baltic mFRR
standard product. These bids are reflected in Baltic CMOL with forecasted price;
6.3. Baltic emergency reserve (ER) mFRR specific product from the BSPs within and outside the
Baltic CoBA.
7. Baltic mFRR standard and ER mFRR specific products shall comply with the requirements set out in
Table 1.
Table 1. Baltic mFRR standard and ER mFRR specific product specification
Parameter mFRR standard product ER mFRR specific product
Preparation period Agreed during the phone call between Connecting TSO and BSP
Ramping period Not more than 15 min
Full activation time Not more than 15 min
Minimum and maximum
MIN = 1 MW; MAX = no restrictions; Resolution 1MW
quantity
Deactivation period Not more than 15 min
Marginal for Normal activation; Pay as bid of BSP for
Pricing method Pay as bid of BSP
special activation
MIN not determined; MAX = 5000 EUR/MWh
Minimum and maximum price
Accuracy 0,01EUR/MWh
Divisibility To be defined by BSP (Divisible or not divisible)
Minimum and maximum MIN = 1 min; MAX = 60 min (but not more than until the end of ISP).
duration of delivery period Resolution 1 minute
Validity period 60 min Not determined
Mode of activation Manual
Minimum duration between
the end of deactivation period Not determined
and the following activation
Linking of bids in time is not allowed. Bids can be linked in power for the same ISP,
meaning that bid 2 can be activated only in case bid 1 is activated. If bid 1 is not activated,
Linking of bids
then bid 2 is unavailable. Linking of balancing energy bids is one directional.

Settlement volume
determination: required start
of delivery end time of the
order
Balancing energy gate closure
time
Firmness of the bids
Block product of between required start of delivery and end time of order.
Energy is determined in 0,001 MWh accuracy
H-45min D-1 16:00 EET
All received bids are firm (fixed). BSP has responsibility
All received bids are firm
to inform TSO if there are unplanned technical
(fixed). Bid may be not
restrictions to execute the bid after the balancing energy
available after activation for 12
gate closure time but not later than activation order was
hours or longer period.
provided.

8. Only BSPs approved by their connecting TSO can participate in Baltic balancing market by submitting
their balancing energy bids to their connecting TSO and executing activated bids upon the connecting
TSO’s request.
9. The Nominated TSO is responsible for operation of the Baltic balancing market and initiating activation
of balancing energy bids in normal system operation state.
10. Each connecting TSO shall be responsible for:
10.1. maintaining operational security of its control area;
10.2. initiating balancing energy bids for other purposes than balancing;
10.3. ensuring BSP’s energy bid compliance with the Baltic CoBA market requirements;
10.4. ensuring information exchange between BSP within TSO’s imbalance area and the Nominated
TSO;

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 10.5. performing balancing settlement within each TSO’s imbalance area.

III Balancing energy bid submission and CMOL creation

11. BSPs may submit and update their balancing energy bids separately:
11.1. mFRR standard product – upward activation;
11.2. mFRR standard product – downward activation;
11.3. ER mFRR specific product – upward activation.
12. After balancing energy gate closure time all submitted balancing energy bids become firm and no further
bid updates are allowed. Balancing energy gate closure time for a BSP to submit bids for its connecting
TSO:
12.1. for all ER mFRR specific product bids for the respective day is 16:00 EET the day before;
12.2. for all mFRR standard product bids for the respective ISP is 45 minutes before the ISP.
13. Connecting TSOs verify bids received from BSPs:
13.1. if the bid is verified, the connecting TSO shall include the bid in the respective merit order list
(MOL) and forward it to the Nominated TSO in accordance with Baltic TSOs’ Agreement;
13.2. if the bid is rejected, the connecting TSO shall inform respective BSP without undue delay in
accordance with the connecting TSO and BSP mutual agreement.
14. After receiving MOLs from all connecting TSOs, the Nominated TSO shall arrange and continuously
update Baltic common merit order lists (CMOLs). All CMOLs are shared among all Baltic TSOs. Bids
in CMOLs are arranged based on most advantageous price criteria (merit order). There are three Baltic
CMOLs:
14.1. mFRR standard product – upward activation (energy bid with lower price has higher priority);
14.2. mFRR standard product – downward activation (bid with higher price has higher priority);
14.3. ER mFRR specific product – upward activation (energy bid with lower price has higher
priority).
15. If a bid becomes unavailable due to technical issues, BSP shall inform its connecting TSO with undue
delay. The connecting TSO with undue delay shall indicate all such bids as unavailable in the respective
Baltic CMOL.

IV Baltic CMOLs’ bid activation

16. Balancing energy bid activation in Baltic CoBA is executed by the Nominated TSO or the requesting
TSOs with respect to:
16.1. continuous Baltic ACE forecast for the ISP - the objective of activation is to minimize Baltic
ACE;
16.2. available cross-zonal capacity for the ISP - balancing energy bids can only be activated, if
there is available cross-zonal capacity within the balancing timeframe and activation of these
bids do not create congestion during the particular ISP;
16.3. CMOLs and submitted bid specification for the ISP – to extent it is technically feasible, bid
activation follows most advantageous price criteria.
17. Balancing energy bids from Baltic CMOLs can be activated in the three following cases:
17.1. Normal activation for Baltic CoBA balancing purposes – initiated by Nominated TSO,
activated by the connecting TSO;
17.2. Special activation for countertrade purposes – initiated by requesting TSO, activated by the
connecting TSO;
17.3. Special activation for other purposes (system constrains, network issues) or on the request of
non-Baltic TSO – initiated by the requesting TSO, activated by the connecting TSO.
18. Normal and special activation for upward and downward activation is applied to bids from:
18.1. mFRR standard product CMOLs;
18.2. ER mFRR specific product CMOLs only if there are no available bids on mFRR standard
product CMOLs.
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19. When executing normal activation, the Nominated TSO shall initiate to activate:
19.1. available bid with the lowest price for upward activation;
19.2. available bid with the highest price for downward activation;
19.3. available bid located within Baltic area prior to bid located in non-Baltic area in case these
bids are with the same price;
19.4. all available bids with the same price in accordance with pro-rata principle (proportionally to
the volume of the bid) for cases when the most advantageous price criteria is fulfilled by
multiple bids in the same CMOL if all multiple bids are within Baltic area.
20. Normal and special activation of balancing energy bids can be performed not following most
advantageous price criteria listed in paragraph 19 in following cases:
20.1. when the most price advantageous bid cannot be activated due to CZCBT constraints;
20.2. when the most price advantageous bid is an indivisible bid, which exceeds the activation needs.
The indivisible bid shall be skipped, and the next available bid in the CMOL shall be activated
in required volume. The indivisible bid can still be activated, if activation does not compromise
system security and contributes to minimizing the balancing costs during a particular ISP;
20.3. when the most price advantageous bid is linked with another bid that has a lower price
advantage. The linked bids can still be activated, if activation does not compromise system
security and contributes to minimizing the balancing costs during a particular ISP;
20.4. when the most price advantageous bid for special activation purposes does not contribute
towards the objective of the special activation;
20.5. except in the normal power system state, when the most price advantageous bid would not
mitigate the severity of the current system state.
21. Balancing energy bids shall not be activated or reserved before the corresponding balancing energy GCT
and the intraday cross-zonal GCT, except cases of alert system state or emergency system state to
mitigate the severity of these system states.

V Cross-zonal capacity within the balancing timeframe

22. Calculation of cross-zonal capacity within the balancing timeframe is performed for Estonian, Latvian,
Lithuanian, Russian and Belarusian power systems as well as high-voltage direct current (HVDC)
connections with Finland, Sweden and Poland by taking into account actual power flows on AC cross-
border interconnections and for HVDC cross-border interconnections, already allocated capacities on
these interconnections, as well as cross border capacities (TTC and NTC) in the internal and external
interconnections of Baltic power system.
23. Cross-zonal capacity within the balancing timeframe is calculated separately for upward activation and
downward activation based on near real time data of the Baltic power system. Based on calculated cross-
zonal capacity within the balancing timeframe, the Nominated TSO takes decision, whether upward
activation or downward activation is permissible in the particular power system during the particular
ISP.
24. Cross-zonal capacity within the balancing timeframe for certain control area is determined as congested
if there was need for balancing energy activation, but some bid(s) according to CMOL was skipped or
partially skipped in this area due to potential limitations of cross-zonal capacity within the balancing
timeframe.

VI Balancing price determination

25. Balancing price for balancing energy bids activated via normal activation from mFRR standard product
CMOLs is determined based on marginal pricing:
25.1. balancing price for upward activation shall be the most expensive activated upward balancing
energy bid in power (MW);
25.2. balancing price for downward activation balancing energy bids shall be the least expensive
activated downward balancing energy bid in power (MW).

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26. The pricing of upward ER mFRR specific product energy bids activated via normal activation shall be
based on pay-as-bid principle.
27. Balancing price directly used as a component in imbalance price calculations in Baltic CoBA is
determined for each Baltic imbalance area based on marginal pricing via normal activation from Baltic
CMOLs for each ISP:
27.1. if without activation within the ISP the Baltic imbalance area would have had energy shortage,
the balancing price is the highest price of the upward balancing energy (standard mFFR or
specific ER mFFR product) bid activated via normal activation;
27.2. if without activation within the ISP the Baltic imbalance area would have had energy surplus,
the balancing price is the lowest price of the downward balancing energy (standard mFFR
product) bid activated via normal activation;
27.3. if no bids have been activated in accordance with paragraphs 27.1 and 27.2 the balancing price
is set equal to day-ahead market price in respective ISP.
28. The prices in paragraphs 25 and 27 are determined for each Baltic imbalance area separately:
28.1. if during the ISP there was no congestion of cross-zonal capacity within the balancing
timeframe, all BSPs which bids were activated via normal activation in the same direction
during the ISP shall be entitled to the same balancing price regardless of the price set in the
submitted bid.
28.2. if during the ISP congestion of cross-zonal capacity within balancing timeframe occurs, Baltic
CoBA shall be split into separate balancing price areas. Balancing price for each area is defined
according to principles in paragraph 27.
29. Balancing price may be higher than the price of the most expensive upward activation bid or lower than
cheapest downward activation bid in Baltic CMOLs in the case of balancing energy exchange with other
non-Baltic TSO where balancing energy price is defined after the respective ISP.
30. Balancing price for bids activated via special activation are settled based on pay-as-bid principle. Costs
and gains from bids activated via special activation do not impact imbalance price calculations.
31. If during an ISP both normal activation and special activation take place, for settlement purposes the
more price advantageous bids firstly shall be assigned to normal activation based on the volume
activated. The price of special activation is determined as follows:
31.1. the price of the bids from the upward activation mFRR standard product CMOL shall be equal
or higher than the marginal price set for normal activation;
31.2. the price of the bids from the downward activation mFRR standard product CMOL shall be
equal or lower than the marginal price set for normal activation.

VII Market information and transparency

32. After the end of an ISP all Baltic TSOs ensure that all information regarding activation orders is
complete and publicly available on Baltic balancing market dashboard and/or Baltic TSOs websites and
on the central ENTSO-E information transparency platform.
33. As the result of an operational hour at least (but not limited to) following information is available at
Baltic balancing market dashboard after ISP:
33.1. current balancing state – preliminary Baltic ACE;
33.2. the volumes of aggregated balancing energy bids – CMOLs;
33.3. cross zonal capacities within the balancing timeframe;
33.4. the volumes of aggregated activated balancing energy bids;
33.5. balancing energy prices;
33.6. imbalance volumes.

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34. After each accounting period Baltic TSOs shall publish monthly report containing aggregated financial
data regarding balancing expenses and incomes.

Baltic CoBA Imbalance settlement rules

I Objective and scope
1. The Baltic transmission system operators– Elering AS, AS “Augstsprieguma tīkls”, LITGRID AB
(further in text all together – Baltic TSOs) apply harmonized imbalance settlement rules for their
respective imbalance areas.
2. Baltic TSOs have agreed to harmonized imbalance settlement framework that complies with the
following principles:
2.1. TSOs shall not incur neither economic gains nor losses with regards to the financial outcome of
the imbalance settlement;
2.2. imbalance price fully reflects costs and income from balancing services;
2.3. imbalance price does not include costs for imbalance settlement administration.
3. All definitions and abbreviations used in this document must be applied and used as defined in Annex 1
of Baltic TSOs’ Agreement on the operation and settlement of the Baltic coordinated balancing area.
Annex 1 is publicly available.

II Imbalance settlement framework

4. Baltic TSOs shall apply the same settlement mechanism for calculating: position and allocated volume;
imbalance adjustments; imbalance and imbalance price.
5. Each Baltic TSO within its imbalance area shall calculate position, allocated volume, imbalance
adjustment, imbalance:
5.1. for each balance responsible party (BRP);
5.2. for each imbalance settlement period (ISP).
6. The Baltic TSOs shall apply the single settlement (portfolio) model, where for the purpose of imbalance
settlement calculations production and consumption are aggregated within the same portfolio.
7. The Baltic TSOs shall apply the single pricing model, where single price is applied for all imbalances
(for shortage and surplus direction) for each imbalance price area within imbalance settlement period.
8. Each Baltic TSO may develop and apply separate settlement mechanism and administrative processes
for:
8.1. imbalance administration cost allocation;
8.2. collateral calculations;
8.3. information exchange regarding imbalance settlement calculations.

III Imbalance settlement calculations

9. Each Baltic TSO within Baltic CoBA shall perform imbalance settlement within its imbalance area and
shall determine the imbalance payment amount for BRP in accordance to the rules set out in this section.
10. Imbalance payment amount (Cip) for a single accounting period shall be calculated as follows:
=∑ − , whereas

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 Cip – imbalance payment for accounting period (EUR). BRP pays to TSO, if Cip is negative,
TSO pays to BRP, if Cip is positive;
t – imbalance settlement period (ISPt);
T – number of imbalance periods within a single accounting period;
– imbalance cost for ISPt (EUR);
Ca – imbalance administrative payment for a single accounting period (EUR).

11. Imbalance cost (C ) for ISPt shall be calculated as follows:

= × , whereas

– BRP’s imbalance in ISPt (MWh);

– imbalance price for imbalance area in ISPt (EUR/MWh).

12. BRP’s imbalance, , shall indicate the size and the direction of the settlement transaction between
the BRP and the TSO; an imbalance can have alternatively:
12.1. a negative sign indicates BRP’s energy shortage and BRP shall procure shortage energy from
the TSO at the imbalance price;
12.2. a positive sign, indicates BRP’s surplus and BRP shall sell the energy surplus to TSO at the
imbalance price.
13. Each BRP’s respective imbalance ( ) in ISPt shall be calculated as follows:
= − , whereas
– allocated volume for BRP in ISPt. reflects metered net volume of actual physical
generation and consumption within ISPt over the metering points within BRP’s imbalance
area (MWh). For calculation purposes generation volume is assigned positive sign and
consumption volume is assigned negative sign.
– final position of BRP in ISPt. reflects BRP’s declared scheduled net energy volume
of commercial transactions on organised markets or between BRPs including any
imbalance adjustment applied to that BRP, within a given ISPt (MWh). For calculation
purposes generation volume is assigned positive sign and consumption volume is
assigned negative sign.

14. Final position ( ) is calculated as follows:

= + , whereas
– position of BRP in ISPt. reflects BRP’s scheduled net energy volume of commercial
transactions on organised markets or between BRPs within a given ISPt (MWh) in
accordance with local balancing agreements;
– imbalance adjustment reflects required changes in BRP’s final position to account
for the balancing energy activated by order of the TSO and executed by a BSP within
BRP’s imbalance area. can be both positive and negative, depending on the
direction balancing activation had (MWh).
15. Each TSO shall establish processes for information exchange in regards to BRP’s final position and
BRP’s allocated energy volume.

16. The imbalance price is determined based on the direction of the Baltic CoBA imbalance position during
particular ISP (exemplified in Table 1). Imbalance price for ISPt ( ) for each TSO’s respective
imbalance area shall be calculated as follows:
16.1. For ISPt where there is overall energy shortage within Baltic CoBA, the single imbalance price
shall be calculated:
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 = + , whereas

– balancing energy price for ISPt (EUR/MWh). P shall be calculated as in accordance

to Baltic balancing market rules;
P – target component for ISPt (EUR/MWh).

16.2 For ISPt where there is overall energy surplus within Baltic CoBA, the single imbalance price
shall be calculated as follows:
P =P −

Baltic CoBA
Imbalance position in ISPt
Shortage Surplus
Shortage = −
BRP

= +
Surplus
Table 1 - Single imbalance price methodology

17. Targeted component ( ) is the same value for each ISP in accounting period and is calculated, taking
into account all expenses and/or income from energy trade for not netted area control error (ACE) with
open balance provider and other expenses and/or income in regards to CoBA operative activities occurred
during accounting period, that are not included in balancing price. Targeted component shall be
calculated as follows:
∑ =1( + ) ∑ =1 ∑ =1( , ∗ , )
= , whereas
∑ ∑ ,

– total costs (+)/ revenue (-) of activated balancing energy incurred by Baltic TSOs in the
ISPt (EUR);
– total costs (+)/ revenue (-) of energy delivered by/ to open balance provider in the ISPt
(EUR);
N – total number of BRPs in CoBA;
n – particular BRP.

IV Market information
18. All Baltic TSOs ensure that information relevant to imbalance price calculations is available on Baltic
TSOs’ websites and/ or Baltic balancing market dashboard. Imbalance volumes and imbalance prices for
each ISPt shall be available no later than the 5th working day of the month following the according
accounting period.

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