Glossary

Settlement entity

The settlement entity is an organization or entity responsible for financial settlement of discrepancies between planned and actual delivery or consumption of electrical energy within the electrical grid. These entities are crucial for ensuring balance in the electrical grid and for minimizing financial risks associated with deviations in energy deliveries.

Settlement entities play a key role in the energy market by ensuring transparent and efficient settlement of electrical energy, thereby contributing to the stability and reliability of energy supply.

Settlement price of deviation

The imbalance settlement price is the price used to financially settle the differences between the planned and actual supply or consumption of electricity in the power system. This mechanism ensures that settlement entities (e.g., electricity producers and suppliers) are financially motivated to accurately plan and adhere to their commitments.

The imbalance settlement price is determined based on current market conditions and can vary for positive and negative deviations:

  • Positive deviation: Occurs when the supply of electricity is higher than planned or when consumption is lower than planned. The settlement price for a positive deviation is often lower because it represents a surplus of electricity in the grid.

  • Negative deviation: Occurs when the supply of electricity is lower than planned or when consumption is higher than planned. The settlement price for a negative deviation is usually higher because it represents a shortage of electricity in the grid.

The imbalance settlement price is a crucial tool for maintaining balance in the power system and ensuring the reliability and stability of electricity supplies.

Smart-metering

Smart-metering is the process of measuring electrical energy using a smart meter. This type of meter measures and automatically sends the recorded data to the distribution system operator. The smart meter is a certified measuring device owned by the distribution system and is used for billing purposes. Smart-metering enables precise and efficient monitoring of electricity consumption, leading to better management and optimization of energy resources.

Smart meter

A smart meter is a smart electricity meter that digitally records electricity consumption and enables two-way communication between the supply point and the electricity supplier. It provides accurate and current energy consumption data, which improves the efficiency of energy management for both homes and businesses.

Solar panels

Also called Photovoltaic Panels, these are devices that use sunlight to produce electricity. The crucial piece is composed of several photovoltaic cells which contain materials capable of absorbing photons from the sun’s rays and releasing electrons. These move in an electric circuit producing a current, which can then be used to power electrical equipment in homes or businesses. Find out how solar panels work, what the advantages are and how to make them a green and economically attractive investment.

Solar surpluses

When solar panels produce more energy than is needed at a given time. It can be stored in batteries or sent to the power grid.

Sub-metering

Sub-metering is the installation of an additional electricity meter after the smart meter, used to provide online data on the consumption and production of electricity of selected technologies. Data from this secondary measurement is compared with the invoicing data from the smart meter. The measurement accuracy is 99.9%, which allows for detailed monitoring and optimization of energy management.

Switchboard

Also known as a Distribution Box, the switchboard handles the distribution and management of electrical energy in a building or industrial hall. Current from the network is distributed to efficiently various collection points or equipment.

System deviation

System deviation is the difference between the planned and actual production or consumption of electricity in the power system. This deviation occurs when actual production or consumption deviates from predicted values, which can affect the stability and reliability of energy supplies.

Each settlement entity creates a day-ahead plan for the consumption and production of electricity for its balancing group and is responsible for deviations caused by incorrect planning. The system deviation in each trading quarter-hour is the sum of the deviations of all settlement entities.

The system deviation can be positive or negative. A positive deviation occurs when the total consumption in the system is lower than the planned amount, indicating a surplus of electricity. A negative deviation occurs when the total consumption is higher than planned, leading to a shortage of electricity in the grid.