ECONOMIC AND MARKET IMPACTIntegration of the Polish market with European markets

Integration of the Polish capacity market with European markets (Market Coupling) takes place in several key areas:
  • Single Day-Ahead Coupling (SDAC),
  • Single Intra-day Coupling (SIDC),
  • coupling of balancing markets.

Integrated European markets help improve the stability of the Polish power system, allowing energy to be imported in times of deficit and exported in times of surplus, as long as there is an opportunity to sell or buy additional energy in other power systems in the European Union. The pan-European reach of market mechanisms allows optimising the use of resources throughout the Union, lowering the cost of energy supply and improving its security and reliability.

PSE's involvement in the areas mentioned includes implementation and development activities at the European, regional and local levels. Coordination of activities aimed in particular at ensuring that the required business capabilities in the area of market coupling are achieved in a timely manner takes place within the framework of a dedicated business task set up in the company and carried out by subject-matter staff supported by an organisational and competence team appointed for this purpose. This way, in addition to the ongoing tasks in the area of market coupling, competences are being built up in our organisation to enable smooth implementation of changes in the future.

Single Day-Ahead and Intra-day markets are operated by Nominated Energy Market Operators (NEMOs) with TSO participation and allow energy to be exchanged in the wholesale market up to one hour in advance.

Balancing markets

In addition to the integration of the Day-Ahead and Intra-day market segments, PSE is also actively working on the integration of balancing markets in Europe, as required by Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (hereinafter: the EBGL). 

The EBGL regulation provides for the integration of the European balancing market through the implementation of four platforms:

  1. European platform for the exchange of balancing energy from replacement reserves (RR)
    • Required activation time: 30 minutes.
    • Implemented under the TERRE project launched on January 15, 2020.
  2. European platform for exchange of balancing energy from frequency restoration reserves with manual activation (mFRR)
    • Required activation time: 15 minutes
    • Implemented under the MARI project launched in October 2022.
  3. European platform for exchange of balancing energy from frequency restoration reserves with automatic activation (aFRR)
    • Activation via automatic controller in up to 5 minutes.
    • Implemented as part of the PICASSO project launched in June 2022.
  4. European platform for the imbalance compensation process
    • Based on avoiding activation of balancing energy from automatic reserves in opposite directions by neighbouring TSOs.
    • Implemented as part of the IGCC project (operating in Germany and neighbouring countries).
    • The European launch of the IGCC process took place in June 2021.

Our organization actively participates in all implementation projects of European balancing platforms. As part of our work at ENTSO-E, we participate in the preparation of detailed methodologies required under the EBGL Regulation. Since February 2020, our organization has been operationally active in the IGCC project. Connection to balancing platforms is planned for 2024.

Fig. Overview of European balancing energy exchange platforms (source: ENTSO-E)

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