Procurement of Ancillary Services from a Market Perspective - Transition to a Market-Based Mechanism in Serbia

Serbia, emphasizing the role of aggregators and the integration of advanced auction platforms.

The methodology presented in the paper focuses on the procurement of balancing capacity through organized auctions conducted by the Transmission System Operator. The auction framework allows participants, including producers, aggregators, end consumers, and energy storage operators, to submit bids specifying quantity and price. Prequalification processes ensure that only technically capable and reliable resources participate. The market currently operates using a pay-as-bid approach, with plans to transition toward marginal pricing to further enhance market efficiency. Maximum bid prices are defined based on system characteristics, opportunity costs, and historical reference prices from regional balancing markets. Participants whose bids are accepted receive financial compensation for providing reserve capacity, offering direct benefits. In addition to the national Auction Platform, Serbia is actively preparing for integration with European balancing platforms, such as MARI, TERRE, and PICASSO. This alignment will enable future cross-border exchange of balancing services, improve regional coordination, and contribute to the operational security of the continental European synchronous area. While full membership has not yet been achieved, the national auction platform demonstrates operational readiness, adheres to market principles, and facilitates transparent participation even with a limited number of participants.