Did you know that a single cloud above a solar farm can be enough to disrupt solar power generation? In today's energy market, flexibility matters more than ever. That means managing how much electricity you generate and consume smartly. With the rise of solar and wind energy, the electricity supply is changing faster than ever. This makes forecasting more difficult and imbalance more likely — and that costs money!
Whether you're a supplier, producer, or large consumer: if you can get a grip on imbalance, you save money and avoid surprises. This blog explains what’s happening and, more importantly, what you can do about it.
What causes imbalance?
Imbalance occurs when more or less electricity is used or generated than was scheduled on the electricity grid. With increasing solar and wind power, this risk is present every day. Think of sudden cloud cover, calm winds, or a malfunction at a solar farm. Forecasting errors or technical issues at power plants can also lead to imbalance. When this happens, TenneT has to intervene — and the costs? They're passed on to the market parties that are out of balance.
Who's involved?
Several parties play a role in maintaining balance on the electricity grid. The better they collaborate, the more stable the grid remains:
Transmission system operators (TSOs)
TSOs, like TenneT in the Netherlands, monitor grid balance. They intervene when imbalance occurs, maintain system stability, and distribute the imbalance costs. They monitor continuously and take measures on the energy market. Without them, there would be no control over imbalance.
Balance responsible parties (BRPs)
BRPs are companies responsible for keeping the amount of electricity they supply or consume in balance — such as energy suppliers or large producers. They make forecasts in advance about how much power they expect to generate or use. If reality deviates, imbalance arises, and they pay the price — literally. Through smart planning, control, and clear communication with customers and partners, BRPs minimize their risks.
Energy producers and consumers
Producers and consumers are responsible for the actual generation and use of electricity. If a solar farm suddenly generates more than expected, or a factory uses more power than forecasted, imbalance occurs. By producing flexibly or adjusting demand, you help keep the system in balance.
Suppliers and aggregators
Suppliers and aggregators bundle flexible energy sources — like batteries and smart devices — and offer them collectively on the energy market. They help BRPs and TSOs keep the grid in balance. The better they cooperate with others, the more value they add to the energy system.
What are the consequences of imbalance costs?
Imbalance costs affect everyone in the energy chain. Producers and large users pay extra when operations deviate from the plan. BRPs pay if their forecast is off. Suppliers may suddenly face high charges. These unforeseen costs make energy more expensive and running a business more complex. It becomes harder to operate efficiently, and with thin margins, investing in sustainable solutions becomes even more difficult. In short: imbalance costs bring more risk. Time to act!
How does the imbalance system work?
Imbalance arises when electricity supply and demand aren’t equal. This difference is called energy imbalance. The TSO intervenes on the imbalance market using balancing actions, often in 15-minute intervals. BRPs that are out of balance receive a price signal: imbalance costs. These vary based on the size of the deviation and the current market situation. This system self-corrects via price signals.
How to reduce imbalance costs
Thankfully, you're not powerless. With smart technology and the right partners, you can take control of imbalance costs:
Monitor your generation and consumption in real time
Smart metering solutions like Sparky show exactly how much energy you're generating and using. Connect this to a dashboard and adjust immediately when needed — no surprises on your imbalance bill.
Improve forecasting with smart models
Use AI and machine learning to predict your energy usage and generation more accurately. Chargee’s forecast models, for instance, combine weather data, your consumption patterns, and market info. The better your predictions, the lower your imbalance risk.
Use flexibility to adjust smartly
Batteries, smart devices, and flexible demand allow you to respond quickly to changes. With integrations like Chargee Cloud and Flint, you can automate adjustments based on price and balance signals.
Join a virtual power plant (VPP)
A VPP combines multiple small energy sources and controls them as one central unit. This lets even smaller players participate in the imbalance market. Chargee provides smart software solutions for this.
Collaborate and share knowledge
Work with aggregators, tech providers, and other BRPs to become stronger. Share data, insights, and resources. Together, you create a network that reacts faster and more intelligently to imbalance.
Looking ahead: what does the future hold?
Imbalance costs are here to stay. In fact, with more solar and wind power, cross-border trading, and automated systems, the rules will only become more complex. Companies that invest now in flexibility, smart control, and collaboration will lead the way. Take the initiative and stay in control of your energy:
