Funding entity Asociación de Empresas con Gran Consumo de Energía (AEGE)
The costs of ancillary and balancing services in the Spanish electricity system has increased significantly in recent years and this has also exacerbated their volatility. In Spain, the cost of these services is recovered through components passed on to each end user in proportion to their final consumption. This financing scheme for ancillary and balancing services is very unorthodox, as in most European countries these costs are financed through network charges. The aim of this project is to advance recommendations for defining an efficient cost allocation and settlement scheme for ancillary and balancing services in the Spanish electricity system that reflects, as far as possible, the causality of costs and, on the other hand, addresses concerns regarding the volatility of these costs and the impossibility of managing the associated risk. To identify alternative financing schemes, the project analyses the experience of other European countries that share the same high-level regulation as Spain, selecting those systems that have also experienced recent increases in these costs.
Layman's summary: The objective of this project is to advance recommendations to define an efficient cost allocation and settlement scheme for ancillary and balancing services in the Spanish electricity system, which reflects cost causality and allows price risk hedging.
Techniques employed: Desk research. Review of international experiences. Quantitative analysis.
2025_AEGE_AJUSTE
