The National Energy Regulatory Council (NERC), having assessed the market situation, approved at its meeting the proposal of the transmission system operator Litgrid to reduce the volume of balancing capacity services provided by Energy Cells. As of 1 May, the volume of these services will be reduced by 10 MW – from 40 MW to 30 MW.
The decision was made after evaluating the overall situation in the Baltic balancing capacity market. Litgrid has identified that sufficient supply is emerging in the market, with a growing number of participants capable of ensuring real-time system balancing and frequency stability at competitive prices.
“Energy Cells plays an important role in ensuring the stability of the electricity system. The company provides balancing capacity services in cases where there is a shortage of capacity in the market. We see that competition in the balancing capacity market is strengthening, therefore the share of Energy Cells facilities participating in this market may be reduced," – says NERC Chair Renatas Pocius.
According to NERC's assessment, reducing the volume of services provided by Energy Cells will not have a negative impact on the balancing capacity market. Sufficient supply will be maintained, while the costs of procuring these balancing services are expected to decrease.
NERC notes that the situation in the balancing capacity market will continue to be monitored. As the market develops further, the volume of services provided by Energy Cells may be reduced in the future – potentially leading to a full phase-out once market participants are able to ensure sufficient supply independently.
To ensure system security during the transition period, NERC approved in 2025 an extension of the contract between Litgrid and Energy Cells until the end of 2026.
Photo by „Energy Cells“.
