Achieving a fully integrated energy market under the EU electricity target model constitutes an ongoing process. Given that the integration of wholesale markets is already at a mature stage, the next step forward is the successful integration of the balancing markets across European control areas. The Electricity Balancing Guideline (Commission Regulation (EU) 2017/2195) establishes the common principles for procuring, activating and exchanging of the balancing services. The integration of balancing energy markets is facilitated by European platforms that apply common merit order list to ensure cost-efficient activation of balancing energy bids across Europe. The aim is a pan-European market for system services with a harmonized market design and non-discriminatory trading of balancing energy without barriers between markets.

The PICASSO Platform is the Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation for the exchange of balancing energy from aFRR, in accordance with Article 21 of the Electricity Balancing Regulation. The Platform has been endorsed by all ENTSO-E TSOs. 

The aim of the study is to analyse the experience of the platform's operation up to now and to draw conclusions on what can be expected for the balancing energy markets of the countries in the region after accession. First, we analyse the prices on the platform compared to wholesale prices, and then we use two REKK models to analyse the expected benefits of accession for the countries in the region.