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Fix the energy market
Draft

Great Britain — Reformed National Market

A national wholesale market supported by balancing, constraint management, capacity procurement, Contracts for Difference, ancillary services, network charging and local flexibility mechanisms.

Solution section

Balancing & Real-Time Operation

How deviations, uncertainty and real-time system requirements are handled.

Balancing & Real-Time Operation

The Balancing Mechanism is the principal near-real-time mechanism used to correct positions and maintain physical balance.

Conceptually:

forward positions→updated system conditions→balancing actions→physical operation.\text{forward positions} \rightarrow \text{updated system conditions} \rightarrow \text{balancing actions} \rightarrow \text{physical operation}.

NESO can accept bids and offers and procure ancillary services required for secure operation.

Balancing is therefore not merely settlement of forecasting error. It is an important operational layer for resolving differences between market schedules and the physical system.