The number of new plants that were prequalified to provide ancillary services in 2024 is seven times higher than in 2023. A total of 272 new plants were approved, while 278 existing plants had their approval renewed.
Traditionally, power plants and heating plants have provided ancillary services, but several new players such as nurseries, swimming pools, charging operators and ice rinks are now on the scene. Larger batteries and cooling plants have also started to contribute to the balance of the electricity system.
- In a green electricity system, where a large part of the production will come from wind and solar, there is a need for many more people who can turn it up or down, so that we always ensure that there is a balance between production and consumption. That is why I am very happy to see that many more than those who have normally provided ancillary services can see opportunities. It is good for them, and it is good for the security of supply in Denmark, says Area Manager for Flexibility and Balancing Kia Marie Jerichou in a press release from Energinet.
Older plants have also had to demonstrate their ability to meet stricter requirements, which has ensured their continued participation in the market. At the same time, from October 2024, Denmark has become part of the international market PICASSO, where system services can be traded across borders.
There are several reasons for the increased interest in contributing to the balance of the electricity system. First and foremost, Denmark's electricity system, with much more wind and solar and a multiplication of production, has created greater imbalances. Therefore, Energinet has developed the balancing market with a long series of changes that are intended to make it more attractive and that provide some cross-border opportunities and thus larger markets. At the same time, as in the rest of the electricity market in recent years, there have been high prices and large fluctuations, which has created greater business opportunities and interest.
In 2023, Energinet spent DKK 2.35 billion on system services, which include balancing.
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