Assessment of the implementation of cross-border balancing trade between Belgium and the Netherlands

Abstract

Balancing services in Belgium and the Netherlands are procured and activated locally so far. However, the implementation of cross-border balancing trade between both countries is expected to entail significant benefits. The assessment in this paper illustrates that the implementation of a cross-border balancing market between Belgium and the Netherlands is a lucrative and achievable goal that does not entail unrealistic or overly expensive preconditions. Significant cost reductions could have occurred with cross-border balancing during the year 2008-due to netting and cross-border procurement of relatively cheaper services. Restrictions imposed on cross-border balancing due to cross-border capacity constraints would have been rather small.