Balancing

If your country operates a balancing responsibility scheme, who is the balancing authority and do the generator and offtaker typically undertake balancing themselves?

Not applicable. 

Last modified 9 Feb 2021

Not applicable.

Last modified 16 Dec 2020

Information not publicly available.

Last modified 16 Dec 2020

Balancing is done by ELIA in accordance with the Federal, Flemish and Walloon technical regulations. ELIA assumes the balancing responsibility for the Belgian territory. In doing so, it cooperates with so-called "access responsible parties" (ARPs). The ARP is responsible for maintaining a balance within its own individual balance area. The perimeter of an ARP consists of injection and off-take points for which they were appointed ARP.

Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing applies directly to the BE energy market.

The imbalance tariffs, charged to ARPs, are set by the regulatory authority (CREG) on the basis of a proposal by the transmission system operator for electricity (ELIA). In principle, the tariffs are set every four years.

Last modified 25 Feb 2021

Not applicable.

Last modified 9 Feb 2021

The physical delivery of the electricity is controlled by the Operator of the National Electricity System (ONS), who centralizes the dispatch of the power plants.

The contractual/financial portion is handled by Chamber of Electricity Commercialization (CCEE), who is responsible for the financial balance of the power system. CCEE is also responsible for the short-term or spot market and for the calculation of the spot price.

All corporate PPAs must be registered with CCEE. If generators fail to provide the amount of power contracted or if consumers fail to contract all their consumption, the difference between the actual and the contracted electricity production/consumption will be subject to the spot price. Also, generators and consumers may be penalized by CCEE for their shortfall.

Last modified 16 Dec 2020

The aforementioned Independent Coordinator of the National Electric System is the balancing authority. Usually the generator and off-taker do not undertake balancing. 

Last modified 16 Dec 2020

The authority in charge of balancing the system in the day-ahead spot market is the system operator XM S.A. E.S.P., pursuant to Resolution 24 of 1995 (The Wholesale Energy Market Code). All generators are responsible for primary reserve and shall contribute with AGC services and it becomes a regulatory cost for such units that are uncapable to adjust output in response to change in load. Besides AGC there is no other regulation in place imposing Balancing Responsible Party obligation.

Last modified 16 Dec 2020

Balancing is performed by the users of the network.

Last modified 26 Jul 2021

Not applicable.

Last modified 18 Feb 2021

The balancing authority in Finland is Finextra Oy, a subsidiary of Fingrid Oyj. The party responsible for balancing may be either the producer, the off-taker or a third party and the party best placed to do so will vary on a case by case basis. Usually in physical PPAs the parties have the same balancing responsible party and this is a prerequisite in pay-as-produced PPAs. In synthetic PPAs the parties always have different balancing responsible parties.

Last modified 16 Dec 2020

Relevant balancing groups are held and administered by the competent German electricity TSOs on the basis of contractual agreements with the balancing responsible parties.

In the German market, generators commonly assign balancing activities to third parties, such as direct marketing companies (Direktvermarktungsunternehmer) who will then often also act as balancing responsible party towards the TSO. However, the relevant balancing responsible party could potentially also be the generator or the offtaker themselves.

Last modified 16 Dec 2020

The Italian balancing authority is Terna S.p.A., the Italian transmission system operator.

Generator and off-taker typically undertake balancing through a trader.

Last modified 16 Dec 2020

Kenya’s national transmission network is owned and operated by two utilities, i.e. Kenya Electricity Transmission Company Limited (KETRACO), and KPLC. KETRACO independently owns the majority of the lines, and particularly the high voltage lines, while KPLC has historical ownership of several lower voltage lines. 

KPLC is currently the main distributor and retailer such that it accepts responsibility for balancing supply and demand needs and ensuring the power is safely transmitted through the network to its end users.  Balancing in Kenya is carried out in accordance with the Kenya Electricity Grid Code, and it follows that responsibility for balancing the system is allocated to the offtaker in a traditional PPA.

Last modified 18 Feb 2021

CENACE is not an authority, it is just the operator. The authority is the CRE. The generator and offtaker do not take balancing themselves.

Last modified 16 Dec 2020

The national electricity transport grid operator is the balancing authority. 

Draft Law No. 40-19 also requires the contribution by the generators to the stability of the grid by paying a tariff determined by the National Electricity Regulation Authority. In this regard, Draft Law No. 40-19 introduces the term "system services" consisting of a set of services enabling the national electricity transport grid operator to maintain frequency, voltage and cross-border trade with other countries. System services also allow the national electricity transport grid operator to manage the intermittent nature of renewable energy sources connected to the grid.

Last modified 10 Feb 2021

Apart from being the sole off-taker of the nationally produced electricity, EDM is the manager of the national electricity transportation grid, whose competencies include the management of the system services required for the balance between production and consumption. 

The generator and the off-taker do not typically undertake balancing themselves.  Despite its dual capacity, EDM adopted an organic structure that clearly separates its role of off-taker from that of manager of the national electricity transportation grid.

Last modified 1 Feb 2021

TenneT, the national Grid Operator is the balancing authority. Balance responsible parties (BRPs) are responsible for maintaining supply and demand on the energy market within their own portfolio.

The generator is the BRP, but it is allowed to transfer this responsibility to a service provider in case of a sleeved PPA.

Last modified 16 Dec 2020

No text yet.

Last modified 16 Dec 2020

The generator typically undertake a balancing scheme.

Last modified 16 Dec 2020

Under CPPAs in South Africa, our experience is that the generator and offtaker do not typically undertake balancing themselves.

Eskom is the system operator and is the legal entity responsible for short-term reliability of the interconnected power system. As part of its function, it controls and operates the transmission system and dispatches generation (or balances the supply and demand) in real time. As such, this really only applies where there is wheeling of energy.

Last modified 16 Dec 2020

Balancing is performed by Red Eléctrica de España (REE) in accordance with Operating Procedure 1.5 (Establishment of the reserve for frequency-power regulation of July 13 2006). REE organizes and coordinates a market in which power plants compete to offer the operation reserve service (secondary reserve) and an additional tertiary reserve market. Secondary regulation is an optional ancillary service  whose purpose is to maintain the generation-demand balance, correcting automatically deviations with respect to the anticipated power exchange schedule of the ‘Spain’ Control Block, and the system frequency deviations. Tertiary regulation is an optional ancillary service that, if subscribed to, is accompanied by the obligation to bid, and is managed and remunerated by means of market mechanisms. Its purpose is to resolve the deviations between generation and consumption and the restoration of the secondary control band reserve used.

Seller may appoint a market representation agent, which may also be the Balancing Responsible Party, entering into a Market Representation Services Agreement.

Last modified 16 Dec 2020

As noted above, Svenska Kraftnät is the authority responsible for making sure that the transmission system in Sweden is safe, environmentally sound and cost-effective.

According to Swedish legislation, there must be a company that is legally responsible for balancing the electricity that is produced or consumed at the input and output points of the grid. Therefore a PPA structure will usually include a balancing services agreement with a balancing responsible party who takes on the responsibility for ensuring that there is a balance between the electricity being produced and consumed. In order for a company to provide the balancing responsibility services, it must have a balancing services contract with Svenska Kraftnät. There is a very competitive market for providing these services.

Last modified 16 Dec 2020

Not applicable.

Last modified 9 Feb 2021

No.

Last modified 21 Jan 2021

As noted above, balancing is done by Elexon in accordance with industry code BSC. The BSC sets out that individual generation and demand assets (BM Units) may balance themselves or act through a "Lead Party". It leaves open whether a Lead Party or BM Unit must be a generator or supplier, and as such it would be prudent to expressly designate the function in the cPPA. Regulation (EU) 2017/2195 establishing a guideline on electricity balancing applies directly to the GB energy market, however, this is largely implemented in the BSC.

Last modified 16 Dec 2020

Not applicable.

Last modified 24 Mar 2021

Angola

Angola

To what extent are corporate PPAs presently deployed and what sort of structure do they take?

Corporate PPAs remain uncommon in Angola. 

Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.

Article 15 of the Executive Decree No. 122/19 of May 24 (electric energy sales tariffs) provides special arrangements for the sale of electricity by means of special or bilateral contracts between producers and distributors and those with final customers, under the terms set out in the Tariff Regulations (Presidential Decree No. 4/11 of January 6) shall be authorized by an order of the Minister of Energy and Waters, after hearing the regulatory authority.

All the contracts with National Transportation Network ("RNT" as a sole buyer must comply with certain requirements specified in Article 11 of the Presidential Decree No. 4/11 of January 6 as amended by Article 11 of the Presidential Decree 178/20 of June 25, in order to their prices are allocated to tariffs.

Do the country's regulators allow corporate owners to purchase (1) directly from a facility, or (2) from a choice of suppliers?

In accordance with Article 11 of the General Electricity Law, the use of the facilities and networks that incorporate the Public Electricity System is allowed under the conditions provided for in the aforementioned regulation or agreed between the interested parties and their holders, as long as the supervisory body approves it after prior validation by the regulatory authority.

Hence, corporate owners are allowed to purchase directly from a facility or a choice of suppliers, as long as it has been approved by the supervisory body and has effectively gone through a prior validation from the regulatory authority.

Other than the generator and the off-taker, are any third parties commonly party to the PPA structure (e.g. a utility or other market agent)?

In addition to the electrical energy provided by the Company ENDE E.P (National Electricity Distribution Company) that comes from hydraulic dams and private generators, so far, there are no other third parties as a common party to the cPPA structure.

Is a generator permitted to sell electricity directly to an end user? If so, do they require a licence or other form of authorization?

As previously stated, Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.

Last modified 9 Feb 2021

Angola

Angola

What are some of the technical, political, financial or regulatory challenges to corporations adopting green energy in the short/medium term in your country and how have these challenges been overcome (or how can they be overcome)?

More incentives and benefits need to be created for companies that want to implement green energy systems. Facilitating the process of importing and accessing currencies to pay for equipment to implement the projects related to renewable energy is necessary. Governments should create incentives for companies that are implemented across the country, thereby creating employment and facilitating greater acceptance of new technologies in rural areas.

Last modified 9 Feb 2021

Angola

Angola

Are there any anticipated regulatory changes which will alter the regulatory landscape for corporate green energy and corporate PPAs?

International development partners are providing technical support to the Angolan government to establish a regulatory framework which includes negotiating power purchase agreements with independent power producers (IPPs) and design of a feed-in-tariff scheme for renewables.

Last modified 9 Feb 2021

Angola

Angola

What is the corporate appetite for green energy, including any political or financial incentives available to corporates to adopt green energy?

Even though national and international companies have been showing interest to develop green energy structures in Angola, this is still something that has to be well studied and thought through it. However, there are already small dimensions of solar energy structures being developed, for example, but only for particular purposes.

What are the key local advantages of the corporate PPA model which can benefit our clients?

The key local advantage of the corporate PPA model in Angola is energy security and easier access to financing having the corporate PPA as collateral.

What subsidies are applicable to the generation and sale of renewable energy?

This information has not been made public.

Does your country implement a national support scheme with tradable green certificates (such as guarantees of origins)?

Not yet, as green energy has not yet been implemented.

Last modified 9 Feb 2021

Angola

Angola

To the extent corporate PPAs are deployed, how are prices, terms and risks affected?

Do prices tend to be floating or fixed?

According to Article 26 of the Presidential Decree 178/20 of June 25, the tariff structure is applied by the RNT concessionaire and by the distribution companies to users connected to their networks. Along these lines, this same diploma, on its article 27, establishes that the tariff structure reflects the costs to which users give rise, according to the characteristics of consumption and the level of tension to which they are connected, regardless of their social or legal character and the final destination give to the energy consumed. 

Hence, the prices are fixed considering the elements above mentioned.

What term is typically agreed for the PPAs?

There is not a fixed-term for cPPAs it all depends on the activity to be exercised. However, it is important to mention that the tariff regime is, in general terms, in force in a four-year tariff regime. Alongside with that, the tariff period is defined by a specific diploma by the Sector Regulatory Entity, which must be multiannual, as established on Article 28-A of the Presidential Decree 178/20 of June 25.

Are the PPAs take-or-pay or limited volume?

Not applicable.

Are there any other typical risks?

Not applicable.

To the extent corporate PPAs are deployed, in whose favour will the risks typically be balanced?

Volume risk

The risk is born by those who not comply with rule applicable to the specific situation.

Change in law

Usually, when changing legislation, users and distributors are given a period to prepare and adapt to this mentioned change of legislation. Hence, when there is a change in law non complied with, the risk is born by those who have not complied with the rule in place.

Increase / reduction of benefits

Again, similar to the change in law, the risk is born by those who not comply with rule applicable to the specific situation.

Market liberalization (if applicable)

Not applicable.

Credit risk

The risk is born by those who not comply with rule applicable to the specific situation.

Imbalance power risk

The risk is born by those who not comply with rule applicable to the specific situation.

Production profile risk

The risk is born by those who not comply with rule applicable to the specific situation.

Last modified 9 Feb 2021

Angola

Angola

Does your country operate a balancing responsibility scheme?

Not applicable.

If your country operates a balancing responsibility scheme, who is the balancing authority and do the generator and offtaker typically undertake balancing themselves?

Not applicable. 

Last modified 9 Feb 2021

Angola

Angola

What significant transactions/deals have taken place in the last 12-18 months?

Laúca Hydroelectric Power Plant

According to the Government, Laúca Hydroelectric Power Plant (“AH Laúca”) is the largest work in the country today. The Project was commissioned by the Angolan Executive, represented by the Ministry of Energy and Water, and is carried out by ODEBRECHT. COBA and LA MAYER carry out the supervision of the implementation of the project. When AH Laúca is 100% operational, it will produce more than twice as much energy as the other two dams already operating on the Kwanza River. This energy potential will serve 8 million people. AH Laúca will produce 8,643 GWh (gigawatts) of electricity, representing an installed capacity of 2,070 MW (megawatts).

The realization of the project demands great infrastructure support. Because of this, AH Laúca is today a city that is composed by: Leisure area; Sports area; Accommodations; Kitchen and Cafeterias and Medical Center.

AH Laúca is a pole of job and income generation. The project is also committed to providing opportunities for national talent. Today, the enterprise has 8,458 Members. Of these, 8,035 are national, which represents 95% of the entire productive force involved in the execution of the work. The remaining 423 are expatriates, a number that represents 5% of total members.

Through the Acreditar Program, the project offers basic and specific training to AH Laúca Members and also to the residents of the communities surrounding the construction site.

AH Laúca is 86% ahead of Civil Works, 72% ahead of Electromechanical Assembly and 14% in the Energy Transport System. Always overcoming challenges and fulfilling all the goals set with safety, quality and productivity.

2nd Hydroelectric Power Plant of Cambambe and Dam Alignment

With the conclusion of the Cambambe 2nd Power Station and the Dam Raising, it was possible to obtain an additional power of 780MW. This power is helping to reduce the energy supply deficit in the Provinces of Luanda, Kwanza Sul, Malanje, Uige, Kwanza Norte and Bengo.

It will also allow the interconnection of the North-Central Systems with the Benguela Province link, thus reducing production costs and the consumption of diesel for energy production.

More than 10,000 construction posts have been created as part of the temporary work in the rehabilitation, modernization and extension of the hydroelectric complex. The construction owner was GAMEK (Gabinete de Aproveitamento do Médio Kwanza) and the contractor was ODEBRECTH.

Solar village program

The main objective of the Solar Village Programme is electrification, through the installation of autonomous solar photovoltaic systems (isolated) in infrastructures Social, including: Schools; Medical Posts; Police Posts; Administrative Buildings; and, Social Jangos, including Public Lighting Posts.

In the 1st phase of the Programme, awarded to the company Elektra Electricidade e Águas, Lda, 11 localities were selected from 4 Provinces in the country: Bié, Kuando Kubango, Malange and Moxico. This phase has been completed since 2011, with a total of 156,660 Wp of 42 systems and 70 public lighting posts implemented.

In some cases, a system provides electricity to more than one infrastructure. So far, 50 infrastructures have benefited from the electricity supply, namely: 15 schools, 18 medical posts, 1 maternity ward, 1 police station, 1 police station, 9 administrative residences, 1 nurse's residence, 3 administrations.

In the 2nd phase of the Solar Village Programme, four companies were selected for the installation of a total of 75 systems and 160 streetlights.

As part of the 3rd phase of the Solar Village Programme, the project has already started after the Auto de Consignation signed with the Company LTP Energias S.A. The project will benefit the provinces of Kwanza Sul, Cuando Cubango and Lunda Sul, whose aim is to supply electricity to the communities with Solar Photovoltaic Systems of Auto-consumption Kits and Public Photovoltaic Lighting.

It is part of the energy and water sector action plan 2018-2002, to continue the Solar Village Programme and to ensure adequate maintenance of its infrastructure and test a new concept of a 100% solar mini network, based on batteries, to electrify the most isolated municipality headquarters, avoiding fuel logistics.

What transactions/deals are anticipated to come to market in the next 12-18 months?

See Past transactions

Last modified 9 Feb 2021