Go-live of aFRR capacity market in Norway

A first important step towards a common Nordic capacity market was taken when national go-live of aFRR CM in Norway took place on 29 November.

Norway is the first Nordic country where the balancing service providers (BSPs) can offer bids to a new platform for aFRR (automatic frequency restoration reserve) capacity to the transmission system owner (TSO, i.e. Statnett). Next up is Finland and Sweden in the beginning of 2022. The current plan from Energinet side is to connect straight on to the Nordic market.

“The Nordic aFRR capacity market is an important tool for a successful transformation of the balancing process, allowing us to secure the aFRR reserves we need in a transparent and socio-economic efficient manner. I am very happy that we’ve reached this first step, paving the road for the next Nordic TSOs to onboard the platform, and later on finally reach the go-live of a Nordic common market. The new aFRR market gives the market participants improved business opportunity and possibility to participate in the capacity market with reserves” says Alexander Jansson, program director in NBM.

TSOs must ensure that they have sufficient aFRR resources to handle imbalances in system operation. As aFRR resources are unevenly distributed across the Nordic countries, reserving cross-zonal capacity for aFRR makes it possible to procure aFRR across bidding zones. The reservation of cross zonal capacity will be introduced when the Nordic market reach a go-live.

“We are pleased to facilitate the new platform for the aFRR capacity market. We have strived to make it user friendly for both balancing service providers and the operators at control centers.” says Pål Alfstad Haug, aFRR CM project manager in NBM.

About automatic frequency restoration reserve (aFRR)
aFRR can be activated by an automatic control device designed to get the frequency back to the normal frequency band (49,9 – 50,1 Hz) or get the area control error (ACE) to zero.

aFRR balancing capacity is procured by the TSOs before the day-ahead market, taking into account geographical distribution and network constraints.