Profile balancing

Sector solution for vertical physical load balancing from the TSO to final consumer suppliers in accordance with Section 14 (3) EEG (Section 37 EEG 2009)

Under the German Renewable Energy Sources Act (EEG), in addition to the horizontal load balancing between the four transmission system operators (TSOs), there is also vertical load balancing between energy supply companies / electricity traders supplying end consumers and the TSOs responsible for regulating them.

The vertical load balancing between energy supply companies / electricity traders and TSOs during the year was previously carried out on the basis of provisional EEG quotas and average tariffs. These resulted from the quarterly forecast EEG feed-in volumes and tariffs as well as the electricity supplied to end consumers.

In accordance with the amended version of the EEG, which came into force on August 1, 2004, the vertical physical load balancing during the year pursuant to § 14 (3) (§ 37 EEG 2009) must be carried out "in accordance with a profile announced in good time that approximates the actual electricity purchase from EEG installations pursuant to § 4 (§ 8 EEG 2009) in conjunction with § 5 (§§ 16 and 35 EEG 2009)". According to the legislator, the specific form of this regulation should be left to a consensual and pragmatic solution of the industry as far as possible.

In order to implement Section 14 (3) EEG (Section 37 EEG 2009), VDEW and VDN have jointly developed a practicable and balanced industry solution with the involvement of the relevant stakeholder groups (TSOs, energy suppliers/traders). This provides for a transition from quarterly to monthly profiles in conjunction with the balancing of unavoidable forecast deviations during the year wherever possible. On the one hand, this takes account of the legal requirement to approximate the EEG electricity volumes passed on to energy supply companies / electricity traders to the actual seasonal feed-in pattern. On the other hand, the prompt correction of forecast differences increases planning security for suppliers and TSOs. Price risks arising from the postponement of the correction quantities to the year of settlement are significantly reduced. Any necessary balancing between deliveries during the year and the actual purchase obligation will be carried out as before within the framework of the annual settlements.

The industry solution was communicated by VDEW and VDN to the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). With the approval of the BMU, it will be implemented by the TSOs on January 1, 2006. This means that binding monthly EEG forecasts, i.e. forecasts of EEG electricity volumes and remuneration volumes, uniform nationwide EEG quota and average remuneration as well as final consumption, will be published by the VDN for the first time on December 10, 2005.

As an expert opinion on the industry solution commissioned by the BMU has not yet been completed, it is possible that there may be changes to the profile rolling process at a later date. However, these would then be just as carefully prepared, evaluated and communicated to all affected market participants in good time beforehand.

In order to ensure a transparent settlement procedure for all market participants, the VDN provides the relevant information on its website, e.g. provisional EEG electricity volumes and remuneration volumes as well as extrapolated feed-in profiles for the previous month (for the first time in February 2006).

Further details can be found in the industry solution (PDF file).

Systems and materials (in German)

Industry solution for vertical physical load balancing from the TSO to final consumer suppliers in accordance with § 14 para. 3 EEG (02.11.2005)