Imbalance prices explained: why your battery lives on them
Every quarter-hour, the grid operator sets what a shortage or surplus on the grid costs. If you can be flexible, you can earn from it.
In this article
Electricity has to be generated at the moment it is used. When that doesn't match exactly, imbalance occurs: too much or too little electricity on the grid. The national grid operator resolves it and passes the costs on to the parties that deviate from their plan.
What is an imbalance price?
For every quarter-hour, a price is set afterwards for those who help or disrupt the grid. In a shortage, supplying electricity is valuable and the price is usually above the day-ahead price. In a surplus, taking electricity is valuable and the price can drop sharply, sometimes below zero.
Example day: generation and prices
kW and €/MWh, quarter-hourly · Thu 17 Sept
How a battery benefits from this
- In a shortage, the battery discharges and supplies at a high price.
- In a surplus, the battery charges and is sometimes paid to take electricity.
- The EMS partner controls this automatically, within the limits of your connection.
“Flexibility is worth money when the grid needs it, not when it suits you.”
Why amounts are preliminary at first
The final imbalance settlement follows a few weeks after delivery. That's why the portal first shows a preliminary amount and marks it as final once the settlement is in.
Example text for the design; figures come from a fictional site.