Balancing Electricity Market

In this article, we discuss the introduction of a Balancing Electricity Market (BEM) in the Republic of Kazakhstan to address the risks related to energy security and price diversification in different regions of the country. Prior to the BEM, the electricity purchase mechanism involved the sale of actual volumes of electricity produced by electricity-generating organisations. However, the lack of financial responsibility for imbalances (deviations of actual electricity production consumption from planned values) led to increased risks.

To regulate and solve these issues, the BEM was implemented, and the model of the Single Purchaser in the electricity market, represented by the Settlement and Financial Centre for Support of Renewable Energy Sources LLP (FSC), was adopted. The main principle of the BEM operation is the purchase of planned volumes of electricity by FSC according to the applications recorded in the database of Joint Stock Company Kazakhstan Electricity