Nordic mFRR capacity market

Today, TSOs have national capacity markets for manual frequency restoration reserves (mFRR). mFRR replace aFRR as TSOs restore the frequency back to the normal band (49,9 – 50,1 Hz) or reduce the area control error to zero. Via the mFRR CM project in the NBM program, the TSOs will introduce a common Nordic mFRR capacity market, with hourly procurement on a daily basis (D-1).

TSOs pay BSPs for guaranteeing that they will provide bids in the mFRR energy activation market. Both producers and consumers make bids in the mFRR capacity market. While aFRR is delivered by production units that are already rotating, mFRR can be delivered by production units that need to start up or demand facilities powering down. The national mFRR capacity markets for Energinet, Svenska Kraftnät and Statnett will be moved over to a new Nordic platform supporting national D-1 markets, as a first step towards Nordic market where all four Nordic TSO will participate.

A capacity market is an essential tool for the TSO to secure sufficient amount of balancing reserves. The introduction of an automated balancing process for mFRR (mFRR EAM, MARI) will require more efficient tools for securing these reserves. Thus, the national D-1 markets is considered to be a pre-requisite for a successful go-live of the mFRR EAM. The transition to a common Nordic market will further enhance the socio-economic benefits by efficiently exchange of balancing capacity cross the Nordic countries.

Market handbook FRR CM