eSett Oy has established with Energinet, Fingrid, Statnett and Svenska Kraftnät a model for the Imbalance Settlement Agreement, which will be concluded between eSett and each balance Responsible Party (BRP). The agreement must be signed by each party until eSett assumes operational responsibility for the compensation scheme and imbalance billing for operators in Denmark, Finland, Norway and Sweden. The draft contract is available below and has been sent to the existing balance sheet managers. New Balance officials can ask eSett for approval. We are very pleased that an agreement has been reached and that we can resume the strong Nordic cooperation, which is a hallmark for the energy sector in the Nordic countries. The agreement is a big step forward in developing an efficient electricity market, which ensures security of supply, the CEOs said in a joint statement. The cooperation agreement defines the roles and responsibilities of TSOs. It obliges the five Nordic TSOs to follow a common roadmap for the implementation of the new accounting approach and common accounting markets. In addition, the agreement describes the follow-up to the development of new market platforms that support common markets and missions in the new accounting structure. In order to be authorised as a balance sheet manager, it is necessary for the company to provide evidence of financial stability.
In addition, the financial guarantee must be reported in the form of guarantees relating to the level of risk and the importance of the balance sheet risk of the responsible parties. Learn more on the eSett:s website (new window). The evolution of the energy system implies a more intermittent production of electricity from renewable energy sources and changes in the mode of consumption. This means that greater flexibility and better control of imbalances are needed. This is what the new Nordic balancing model does. The Nordic accounting concept and roadmap include, among others, the following milestones: Nordic Capacity Common Market for aFRR (Q2), 2019) Nordic Common Market for Nordic Capacity for MFRR (Q4, 2019) Introduction of 15 Imbalance Settlement (FAI) (Q2, 2020) Modernised Nordic ACE Balancing (Q1, 2021) Imbalance Settlement Agreement Annex 1 – Fees from 1.1.2021 To become a balance sheet manager, an application must be submitted. An accounting liability agreement must be signed with Svenska. In addition, an imbalance compensation agreement is to be signed with eSett Oy, which manages the imbalance regime in Sweden, Norway and Finland on behalf of Svenska, Statnett and Fingrid.
eSett Oy is also responsible for managing the balance responsibility agreement. . . .