Assessment of imbalance settlement exemptions for offshore wind power generation in Belgium

► This article evaluates the implementation of balancing exemptions under the form of a tolerance margin for offshore wind power generators in Belgium. ► Results show a lower output predictability at offshore locations. ► The financial impact of this specific measurement is calculated and corresponds to an additional subsidy of €1.4-1.7/MWh for offshore wind power generators. ► The authors warn for market distorting characteristics and suggest replacing this measurement by increasing feed-in tariffs or green certificate prices.