Automated mFRR energy activation market

What: The balancing service providers (BSPs) offer bids for manual frequency restoration reserves (mFRR), which are activated based on the TSOs’ needs. mFRR replace aFRR in the process to restore the frequency back to the normal band (49,9 – 50,1 Hz) or reduce the area control error to zero. 

How: Today, the Nordic TSOs share a common bid list. However, activations are done manually by the operators at Statnett and Svk. When we move to 15-minute time resolution, mFRR must be activated automatically, as the control centres cannot execute today's manual processes four times as often also considering lower bid sizes and more complex power system. The activation will be based on forecasted imbalances for each bidding zone. Based on these forecasts, each TSO will send in its activation needs to the activation optimisation function (AOF). During a transition phase, before we connect to the European platform, MARI, a Nordic AOF will clear the market. The Nordic AOF is a necessary bridge between the current manual processes and full automation and integration into MARI.  

Why: TSOs must secure sufficientmFRR reserves to cover a dimensioning error within their control areas (bidding zones). By having a common Nordic and later European market, TSOs can procure these resources where they are cheapest, given the available cross-zonal capacity. The socio-economic gains are huge, up to several hundred million euros for Europe.  

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