How is the price of renewable energy formed?

For example, the total desired purchase quantity is 10MW Frequency Up, and the offers made for the sale of balance energy are as follows:

• Provider A: 3 MW Frequency Up, 150 EUR
• Provider B: 7 MW Frequency Up, 200 EUR
• Provider C: 4 MW Frequency Up, 250 EUR

These bids are ranked by price from lowest to highest, and all bidders who fit within the quantity to be purchased receive the price offered by the last bidder. In the case of the previous example, the balance energy price is 200 EUR, and the quantities of providers A and B are activated. Bidder C’s bid will not be activated.

The price of balanced energy is always higher than the Nordpool electricity exchange price; lower offers do not make economic sense.