Status update of Baltic Balancing market developments Baltic

Status update of Baltic Balancing market developments Baltic balancing working group convener Donatas Matelionis 2020 -11 -19

15 minute ISP implementation status 2019 May 2019 December 2020 March 2020 September 2020 November Derogation request Baltic NRAs Rf. A Amended Derogation request Public consultation Concept document Baltic TSOs Derogation request on implementation of 15 min ISP (EBGL article 53(1)): • Components for proper 15 -minute ISP implementation Derogation request until 31 December 2024 • Stepwise implemented in main two milestones: 1. Implementation and joining to MARI platform 2. Implementation of 15 min balance control

European m. FRR balancing platform MARI • Baltic TSOs prepared documents for implementation and joining to MARI platform: • Baltic Balancing market rules • Explanatory note 2020 October 2020 December 2021 Q 1 Public consultation Market Rules Derogation request Two possible go-live scenarios: 1. Earliest go-live. Either Poland or Nordic TSOs. Expected go-live date 2023 Q 2 -Q 3 2. Go-live date aligned with Nordic TSOs. Expected go-live date 2023 Q 3 – 2024 Q 3

Market based cross zonal capacity allocation methodology Baltic CCR TSOs prepared proposal for MB CZCA methodology Art. 41 EBGL • • Market-based approach Forecasted energy bids Real balancing bids CZC allocation for balancing Optimization ü Real BC bids from BSPs BC GCT (W-1≤ and >D-1) D-1 Forecasted trading bids Žemėlapis RT SDAC (D-1, 12: 00) Timeline: 2019 October 2019 December 2020 June 2020 August Methodology proposal Baltic CCR NRAs Rf. A Amended Methodology proposal 2020 October 2020 December Baltic NRAs 2 nd Rf. A Amended Methodology proposal Public consultation Draft methdology

EBGL implementation activities in 2021 Implementation of MARI platform Art. 20 • Submission and approval of derogation request Implementation of imbalance settlement methodology Art. 52(2) • Common Baltic imbalance settlement methodology for public consultation • Submission and NRAs approval • Implementation until 1 January 2022 Cross zonal capacity calculation methodology for balancing energy exchange Art. 37. 3 • Methodology shall be developed until December 2022 Implementation of Picasso platform Art. 21 • a. FRR balancing energy market rules and technical requirements Implementation of Baltic Balancing Capacity market • Development of Baltic TSOs Proposal for common Baltic Balancing capacity market Art. 33(1)