Balancing power is used to quickly restore the supply-demand balance in power systems.
The need for this tends to be increased by the use of variable renewable energy sources
(VRE) such as wind and solar power. This paper reviews three channels through which VRE
and balancing systems interact: the impact of VRE forecast errors on balancing reserve
requirements; the supply of balancing services by VRE generators; and the incentives to
improve forecasting provided by imbalance charges. The paper reviews the literature …