Balancing Mechanism (BM)
The real-time tool the National Energy System Operator uses to balance GB supply and demand, accepting bids and offers from market participants after gate closure.
The Balancing Mechanism is how NESO keeps the GB system balanced second to second. After gate closure, registered units submit offers (to increase generation or reduce demand) and bids (to reduce generation or increase demand); the operator accepts the actions it needs to balance the system and manage network constraints.
The BM is also the main venue where constraint management happens in practice — for example instructing wind farms behind a transmission constraint to reduce output while bringing on generation elsewhere.
Battery participation in the BM has grown substantially, and BM revenues are an increasingly important layer of the storage revenue stack. Imbalance settlement for the wider market is administered by Elexon under the Balancing and Settlement Code.
Structuring against this in a live deal?
ETC prices and executes PPAs across GB — founder-led, from indicative quote to signed contract.