ČEPS seeks exemption for procuring balancing services, aims to cut grid operating costs

The Energy Regulatory Office has published on its website an application by ČEPS, a.s., for an exemption from the obligation to procure the entire volume of balancing reserve on the day-ahead market, as required under the current wording of the regulation on the internal electricity market. ČEPS has requested the exemption due to current conditions in the electricity market, which do not sufficiently incentivise participation by balancing service providers, and due to uncertainty over the future operation of coal-fired power plants. The aim is also to reduce transmission system operating costs.

ČEPS, the transmission system operator in the Czech Republic, submitted an application this week for an exemption from the obligation to procure balancing services solely on the day-ahead market. Although this obligation is laid down by the 2019 European regulation on the internal electricity market, an exemption may be granted under specified conditions, allowing balancing services to be procured through long-term contracts as well (with a maximum duration of one year).