Contrary to popular belief, Belgium’s multiple electricity markets are not merely a result of regionalization. Instead, they address specific and complementary needs within the national energy system. In fact, there are five distinct markets that each play a crucial role in planning, adjusting, and securing electricity supply.

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Why multiple electricity markets?

The electricity sector faces significant technical constraints. Some production units, such as nuclear power plants, cannot be started or stopped quickly, while others, like batteries or hydro plants, offer great flexibility. Structuring the market across different timeframes is essential to:

• Account for the limited flexibility of certain production or consumption units.
• Adapt in real time to fluctuations in supply and demand.
• Correct planning errors or unforeseen events.
• Ensure the overall stability and reliability of the electrical system.

Long-term markets for confident planning

Long-term and futures markets are key for planning several months or even years ahead. They allow producers, suppliers, and large consumers to secure fixed electricity prices, protecting their operations from spot market volatility. These contracts, negotiated either over-the-counter or on specialized exchanges, provide the financial stability needed for heavy investments and continuous supply.

The day-ahead market: balancing for tomorrow

The day-ahead market sets a unique electricity price for each hour of the next day. This mechanism matches supply and demand bids and is the main tool to balance production and consumption for the upcoming day. Its role is crucial for coherent forecasting and stable foundations for intraday markets.

The intraday market: managing real-time uncertainties

Real-life conditions often differ from forecasts: machines may break down, weather can change, or consumption patterns shift suddenly. The intraday market allows participants to adjust their positions continuously throughout the day, up until minutes before delivery. This flexibility is essential to maintain the network’s dynamic balance.

The balancing market: incentivizing responsibility

The Transmission System Operator (TSO) uses the balancing market to encourage participants to minimize their imbalances. Those who disrupt the network face penalties, while those who help restore balance receive compensation. This mechanism ensures system stability despite unexpected fluctuations.

The ancillary services market: guaranteeing network stability

Finally, the ancillary services market procures essential services that maintain the grid’s stability, such as frequency and voltage regulation. These services, often provided by specific plants or dedicated equipment, are vital to prevent outages and maintain power quality.

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In summary

The coexistence of these five markets is no coincidence; it is a structured response to the complex requirements of Belgium’s electricity system. Each market serves a specific purpose: long-term planning, day-ahead adjustment, real-time management, balancing, and stability maintenance. Together, they ensure reliable, stable, and resilient electricity supply amid today’s energy challenges.

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