balanskraft

Balanskraft is a term used in Nordic electricity markets to describe the capacity and ability to restore balance between electricity production and consumption in real time. The word combines the Swedish and Norwegian roots for balance (balans) and power (kraft), reflecting its function as a reserve that helps keep the grid stable.

Balanskraft comprises resources that can be activated on short notice to increase or decrease generation or to curb or increase demand. These resources may include power plants with fast response, demand-side flexibility, or energy storage. They are typically contracted or certified and can be called upon by the transmission system operator (TSO) to correct deviations between forecasted and actual supply and demand, or to respond to frequency deviations.

In practice, balanskraft operates within the broader balancing framework of the electricity market. TSOs procure balancing capacity and manage activation through balancing orders and markets. Market participants designated as balancing responsible can offer or mobilize balancing energy and face charges or penalties for imbalances between their forecasts and actual performance. Activation of balanskraft is often compensated through activation payments, with prices shaped by supply and demand conditions in the balancing market.

The concept is used across the Nordic region, including Sweden, Norway, Denmark, and Finland, and is embedded in national grid codes and Nordic market arrangements coordinated by Nord Pool. While specifics vary by country, balanskraft generally serves as a key tool for maintaining frequency, reliability, and overall grid stability in liberalized electricity systems.