Svenska kraftnät introduces the BSP and BRP agreements with an adjusted implementation plan
Svenska kraftnät adjust the content and scope of the implementation step for the BSP and BRP roles planned for May 2024.
On December 2023, Svenska kraftnät launched a consultation seeking stakeholder views on how Svenska kraftnät intended to start implementing the terms and conditions for BSP and BRP1 approved by the Swedish regulatory authority, the Energy Markets Inspectorate, in May 2023. Svenska kraftnät proposed that during an initial phase, independent BSPs would get access to balancing markets provided they came into agreement with the BRPs of the delivery points to bear financial responsibility for over- or under deliveries.
The feedback received included broad criticism of Svenska kraftnät’s proposal. The primary concerns raised by stakeholders were the difficulties and costs associated with verifying deliveries and drafting fair agreements between BSP and BRP.
Given the responses to the consultation and the analysis undertaken, the agreements that will enter into force 1 May 2024 will reflect current arrangements. A prerequisite for signing a BSP agreement will be that the BSP has a BRP agreement and is the balance responsible party for the points from which the delivery of balancing services will take place. A party who is not a BSP wishing to offer balancing services has to contract with the BSP, and therefore also BRP, of the delivery point.
The BSP and BRP agreements that will come into effect on May 1, 2024 will be published in Swedish on Svenska kraftnät's website svk.se no later than 1 March, 2024, together with stakeholder responses and Svenska kraftnät’s replies.
Svenska kraftnät will continue working towards the implementation of the independent BSP model described in the terms and conditions for BSPs and BRPs as approved by the Energy Markets Inspectorate. Svenska kraftnät will, no later than 1 May 2024, provide more information on the upcoming steps.
For questions, please contact bsp_brp@svk.se
[1] Balance Responsible Party (BRP) and Balancing Service Provider (BSP) in accordance with Article 18 of Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing guidelines for electricity balancing.