Glossary Term: Balancing Mechanism

Acronym: BM

The Balancing Mechanism (BM) is used to balance supply and demand in each half-hour trading period of every day. The BM is used to either increase or decrease generation (or consumption).

BSC defined definition

One of the tools that the System Operator uses to balance electricity supply and demand, as electricity cannot be stored at scale and must be generated at the time of demand. It allows the System Operator to call upon additional generation/consumption, or reduce generation/consumption, in order to balance the system minute by minute, second by second, to meet demand.

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