The Making of the Balancing Market: From experimentalist governance to differentiated integration

The need for grid stability, blackout prevention and transition to renewable energy demands common market approach allowing cross-border trading instead of the formerly nationally organized balancing markets. The Commission Regulation (EU) 2017/2195 of 23 November 2017 – establishing a guideline on Electricity Balancing (EB GL) – has set the stage for the future of EU balancing energy markets by introducing European balancing energy platforms. In 2022 all of them became operative, however only few actors joined the platforms yet. This paper traces the development of these platforms under the guidance of the EB GL. Process tracing reveals that horizontal administrative networks and EU agencies were key influencers during policy formation. Private authorities also played a crucial role, and cross-border cooperation and pilot projects influenced platform design, supporting the acceptance of the European target model. Policy learning initiatives, experimentalist governance and differentiated integration shaped the dynamic policy-framing process, overcoming concerns about sovereignty and supply security.