The Baltic Balancing Capacity Market (BBCM) is now operational, marking a pivotal step in the Baltic states' energy independence. This platform enables Estonia, Latvia, and Lithuania to manage their balancing capacity needs autonomously, cutting ties permanently from Russia's IPS/UPS system.
Historically, the Baltic states depended on Russia's power network for frequency control. The synchronization with the European grid was both a technical necessity and a geopolitical imperative. The BBCM empowers the Baltic Transmission System Operators (TSOs) to independently manage balancing capacity, ensuring grid stability throughout the synchronization process.
Key features of the BBCM include:
- Robust Market Platform for Balancing Capacity Procurement: TSOs can procure balancing capacities through daily auctions, ensuring system reserves are available 24/7. In the inaugural auction on February 4, 2025, TSOs successfully procured 1,257 MW of balancing capacity, including 29 MW of Frequency Containment Reserve (FCR) and 730 MW of upward Manual Frequency Restoration Reserve (mFRR).
- Cross-Zonal Capacity Allocation: The BBCM facilitates cross-zonal capacity sharing, allowing balancing resources to be exchanged between Baltic TSOs. Navitasoft collaborated with N-SIDE in incorporating resource optimisation, thus enhancing security of supply. The market-based allocation methodology aligns with EU standards, ensuring a transparent and competitive market for balancing services.
- Integration with European Market Standards: Designed to meet European Balancing Guideline requirements, BBCM assists the Baltic TSOs in procuring balancing capacities to guarantee uninterrupted service.
- Flexibility for a Renewable Energy Future: As the Baltic region shifts towards renewables, balancing demand will increase. BBCM is equipped to handle growing variability in power generation, ensuring scalability with the region’s evolving energy mix. By 2025, balancing capacity demand in the Baltics is expected to reach 1,500 MW, and the BBCM is prepared to support this transition.
Jolanta Graudone, Head of System Ancillary Services Unit at AST, stated, “This was a significant milestone for the Baltic balancing market development. The successful launch of BBCM means we now have the abilities to procure the balancing capacity needed for stable and secure system operation of Baltic power systems. The core functionality of BBCM platform was developed and prepared for go-live in less than 7 months, demonstrating the expertise and extraordinary capabilities of all involved parties to make it happen. As renewables keep growing, this market will only become more valuable - not just for TSOs, but for the entire energy ecosystem.”
The development and deployment of BBCM were achieved under intense time constraints, requiring strategic planning, precise execution, and collaboration across multiple stakeholders, including N-SIDE and the three Baltic TSOs Elering, Litgrid and AST. The platform is now fully functional, supporting TSOs with the latest technology in their balancing operations.
The successful launch of BBCM is a defining moment for the Baltic energy sector. With this platform in place, Estonia, Latvia, and Lithuania have strengthened their energy independence, aligned their markets with European standards, and ensured the stability of their grids for the future.
We are proud at Navitasoft to have played a pivotal role in this historic transition. Congratulations to everyone involved—this was a true team effort, demonstrating that even under tight deadlines, excellence can be delivered on time, on spec, and on budget.
