July 23, 2026
Imbalance Management: What Is It, and How Does Covolt Do It?
Published by
Olaf Ketelaars
Covolt Netherlands
Do you have a battery or a solar farm? If so, you’ve undoubtedly come across the terms “imbalance” or “trading on the imbalance.” It’s one of the ways flexible assets can generate additional returns, but it’s also a topic that many people find abstract. In this article, we’ll explain exactly what imbalance management is, why it’s so interesting for flexible capacity, and how Covolt handles it for your installation.
What is imbalance trading?
At any given moment, the amount of electricity fed into the grid must exactly equal the amount consumed. Only then will the grid frequency remain stable at 50 Hz. Grid operators TenneT (in the Netherlands) and Elia (in Belgium) continuously monitor this balance.
In practice, reality always differs from what market participants have planned in advance. These market participants, known as Balance Responsible Parties (BRPs), report one day in advance how much they expect to feed into the grid and consume. This is called the energy program (e-program). The difference between that program and what actually happens is the imbalance.
Important: There is no separate “imbalance market” where you buy and sell. Instead, each BRP is settled every 15 minutes at the imbalance price set by TenneT, based on the balancing energy (FCR, aFRR, and mFRR) required to keep the grid in balance. If a BRP’s deviation is “in the right direction”—that is, if it helps the system—then the BRP receives the imbalance price. If the deviation works against the system, then the BRP pays.
Imbalance trading, therefore, means deliberately using your flexible capacity in such a way that you receive a favorable settlement based on that imbalance price. By charging or discharging a battery at the right moment, you actively work toward a positive settlement rather than passively accepting it.
The imbalance price is determined every quarter-hour (the imbalance settlement period) and can fluctuate significantly: from low or even negative to several hundred euros per MWh. An important factor here is the control state (−1, 0, +1, or 2). This indicates whether TenneT is increasing or decreasing power. In control state 2, TenneT both increases and decreases power within a single quarter-hour (PTU); in this case, separate prices apply and the outcome is less predictable—a risk you must take into account when actively trading.
Why is this interesting?
The volatility of the imbalance price is precisely what makes imbalance trading attractive for flexible assets. A battery can charge when the price is low (or negative) and discharge when the price is high. Solar farms with an imbalance addendum can also capitalize on this.
In short: while price fluctuations are a risk for most consumers, they are actually an opportunity for flexible capacity. But to capitalize on that opportunity, you need to be able to respond lightning-fast based on accurate forecasts—and that’s exactly where Covolt comes in.
How is Covolt responding to this?
Covolt optimizes renewable energy installations using predictive algorithms and proactive market monitoring to ensure maximum efficiency and returns. Every day, we send millions of automated control decisions to our customers’ assets to maximize their returns and help keep the grid in balance.
We do this through a number of related services:
Imbalance Forecast
Covolt has its own forecasting model for the imbalance price. This forecast actively guides the management of your battery, allowing us to act at the most profitable times rather than reacting after the fact.
Flex Trading
We automatically deploy the flexible capacity of batteries (and PV via an imbalance addendum) based on imbalance prices, whenever those prices are favorable. This allows us to get the most out of your available capacity.
Power Control
Smart control of batteries and PV for peak shaving, optimizing self-consumption, and avoiding grid congestion. This basic control can be combined with trading and aFRR.
aFRR and FCR
Covolt manages a qualified aFRR pool with more than 80 customers and supplies balancing capacity to TenneT. This generates an attractive additional return on flexible capacity. aFRR can even be combined with peak shaving on the same asset.
Nomination / day-ahead
Based on an imbalance addendum, Covolt forwards day-ahead nominations for your battery or solar power system to TenneT/the BRP. By making accurate nominations in advance, we minimize your imbalance costs.
Intraday Trading
We offer intraday trading (via ETPA), which allows us to intelligently combine asset-backed, day-ahead, intraday, and imbalance trading. This enables us to capitalize on price differences that arise after the day-ahead market closes.
Asset Management & Monitoring
In addition to trading, Covolt handles the technical and operational management of solar parks and installations: performance monitoring, corrective maintenance, and clear reporting.
MyHorizon app
Using the MyHorizon app, you can monitor and control your system, and view the imbalance and control results—transparently and in real time.
Ready to get started?
Would you like to know how imbalance trading could benefit your battery or solar farm? Contact us or schedule a no-obligation consultation, and we’ll work with you to determine which services are the best fit for your system.
You, too, can profit from imbalance trading. Take the first step today.
We'll work with you to figure out how your system can be more efficient—with no obligations and quick to get started.
