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

The Balancing Market in Serbia plays a critical role in maintaining a secure, stable, and efficient operation of the national power system, particularly in the context of increasing integration of renewable energy sources and growing demand for flexible resources. Traditionally, the procurement of Balancing Capacity relied on non-Market-Based methods, which limited competition, transparency, and efficiency. The introduction of a Market-Based procurement model through auctions has replaced this approach, enabling fair competition, nondiscrimination, and transparent pricing, thereby fostering a more dynamic and objective determination of balancing service costs. The main goal of this paper is to examine the implementation of Market-Based mechanisms for the procurement of Balancing Capacity…