Participation in the reserve markets
The production and consumption of electricity must be equal at all times to ensure smooth operation of the electricity system. Different market operators forecast and balance their consumption and production in advance, but disparities between the actual and forecast values occur.
To balance these disparities, transmission system operators such as Fingrid procure electricity reserves from the market. These marketplaces maintained by transmission system operators are called reserve markets. Actors operating in the reserve markets can adjust their own usage according to the need of the power system.
The importance of reserves has increased as electricity production relies more on weather-dependent renewable energy such as solar and wind power. When weather-dependent electricity production deviates from forecasts or is low, reserves ensure a stable power balance in the electricity network by adjusting consumption and production, as well as utilizing energy storages.
Depending on the market, control of consumption or production takes place either completely automatically, or manually, for example by the operator. The reserve market has different types of products based on their purpose.
Benefits from participating in the reserve markets with Gasum
Our 24/7 Energy Desk operates in the reserve markets on behalf of our customers in Finland and Sweden. As our electricity customer, you can gain significant additional benefits by participating in these markets. For instance, you can adjust your consumption or production for a short period, or provide your capacity for backup to be used during larger disruptions. By doing this, you simultaneously support the electricity system's transition to renewable energy.
If your company's electricity consumption or production can be adjusted according to the needs of the electricity system, you can participate in the reserve market and thus receive compensation for your flexibility.
Examples of industries suitable for the reserve market include:
- Smelting plants and metal industry: The temperature of the smelting oven can be maintained stable, despite temporary electrical consumption control
- Greenhouses: Lighting can be switched off for a short period without negatively affecting the cultivation
- Chemical industry: Consumption of electrolysis processes can usually be easily adjusted to a higher or lower level if needed
- Mining or forestry industry: The electricity consumption of crushing or grinding processes can usually be temporarily restricted if there are small intermediate storages in the process
- Flexible electricity production: Electricity production can be adjusted according to the needs of the electricity system. Wind power can also be offered to the market
- All sectors: Energy storages and standby power plants can be utilized in the reserve market.