Introduction of Financial Settlement Among LFC Areas

Settlement of unintended deviation between scheduled and realized energy exchange among LFC (Load Frequency Control) areas used to be conducted through the energy compensation programs, where energy deviation from period of registration is compensated at a later stage period of compensation of unintended deviation. With the adoption of the Synchronous Area Framework Agreement (SAFA), the Regional Group for Continental Europe the methodology of accounting and financial settlement of unintended deviations FSKAR (Financial settlement kΔf, ACE and ramping period) is defined. The FSKAR methodology defines necessary data for the calculation and determination of unintended deviation. The methodology defines the method of determining settlement prices. The paper describes the methodology of determining settlement prices, the method of data collection and validation, the method of calculation of deviations and other energy and financial quantities, and data exchange between entities.