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TSO collects offers for the balancing capacity* (power) and makes a selection according the offered price. In such way, market participants (BSP and DSO) agrees to hold a volume of capacity and submit bids for a corresponding volume of balancing energy. After selection, market participants (BSP and DSO) signs a contract for the balancing capacity with limited duration (e.g. 1 year).<br/><br/>* ‘Balancing capacity’ means a volume of reserve capacity that a balancing service provider has agreed to hold and in respect to which the balancing service provider has agreed to submit bids for a corresponding volume of balancing energy to the TSO for the duration of the contract.<br/>
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