Smart Balancing of Electrical Power in Germany: Fuzzy Logic Model to Simulate Market Response

Recent EU legislation enforces the integration of European balancing markets, with harmonized products and international platforms for the procurement and activation of reserves; nonetheless, different power balancing strategies remain. The Netherlands and Belgium encourage market participants to support balancing the control block by publishing real-time information. This article refers to such concepts as smart balancing, and a market simulation tool was developed to assess the relevant market parameters for effective smart balancing. This shall contribute to the true integration of real-time balancing energy markets. The scope of the assessment of relevant market parameters was Germany, and the results showed that a pricing scheme had less impact on the results, as currently is understood by European TSOs and regulators. Moreover, the accuracy and frequency of real-time publication indicate the effectiveness of smart balancing and the associated reduction of the activation of balancing energy and associated costs. Consequently, this article proposed a road map for Germany to introduce an adapted smart balancing approach, starting with a simple traffic light.