The dimensioning of FRR takes into account (spot) market results, but is the capacity for reserves still reserved prior to spot market?
The dimensioning of FRR is done before the procurement of FRR capacity, based on historical imbalances. The dimensioning of FRR is to ensure enough reserves in the system and the TSOs can procure these reserves in the capacity market. In theory all the resources can be activated in the spotmarket so the procurement has to be done before. In the mFRR capacity procurement, the TSO can take into account the expected volume of voluntary bids in the mFRR energy market. AFRR does not have an energy market at the moment.
Will the to-be procured FRR capacities per bidding zone be transparent to the market prior to the auctions? If so, will the volume change on daily basis?
The volume may change both hourly and daily, and will be based on a dynamic process (D-2). The TSOs will aim to publish the volumes in advance of the auctions, if practically possible. The procured volumes will be according to dimensioning volumes unless each TSO assess that the procurment of capacity can be less due to voluntary bid volumes in the energy activation market. According to SOGL and EBGL each TSO needs to at least once a year assess the volume of voluntary bids in the energy activation market based on historical values.
Is it possible that the entire FRR capacity demand of an LFC area is going to be procured in other areas or will the TSO's define a minimum ratio e.g.?
Yes, however a procurement of FRR capacity in another bidding area has to be followed by a reservation of transmission capacity between the areas to ensure continuous access according to EBGL.
When will the updated proposal for aFRR capacity market be released? Will the stakeholders be involved if the TSOs need to amend the proposal?
The updated proposals will not be discussed with the stakeholders before it is submitted to the NRAs but the proposal will be published. The proposal was submitted to the NRAs on 15 april 2019. 17. October 2019, TSOs received RfA and submitted the revised proposal to the NRAs the 17. December 2019. The NRA did not reach a decision before the deadline 17. February 2020 and the proposal was sent to ACER.
How is the CZC reservation for aFRR and mFRR related?
The proposed methodology for a marked-based allocation of CZC for in accordance with article 41 of EBGL can be used for both aFRR and mFRR. The details of the market design for an mFRR capacity market is however not yet approved.