Nordic mFRR capacity market

What: 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. 

How: 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 will be combined into a Nordic market after we move to 15-minute time resolution. 

Why: TSOs must secure sufficient mFRR to cover so-called dimensioning errors, the tripping of the largest production unit or HVDC cable within the respective TSOs control area. The capacity market ensures that these resources are available.