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.
- Nordic mFRR Energy Activation Market entry into operation on 3 December 2024 December 4, 2023
- Planned go-live for the Norwegian mFRR capacity market moved to Q1’24 November 30, 2023
- Successful go-live of mFRR capacity market in Sweden October 20, 2023
- Webinar invitation to stakeholders on the Nordic capacity markets for aFRR and mFRR October 19, 2023
- Updated Implementation guides for aFRR and mFRR capacity markets, September 2023 September 19, 2023
- Updated NBM roadmap confirms go-live of mFRR energy activation market by Q1 2025 September 5, 2023
- Schedule for stakeholder meetings on roadmap updates August 25, 2023
- NBM Roadmap update: Go-live of mFRR energy activation market aimed by Q1 2025 July 3, 2023
- Successful go-live of mFRR capacity market in Denmark June 22, 2023
- Successful 15-minute ISP go-live May 26, 2023
- New Market Handbook for aFRR and mFRR capacity markets May 12, 2023
- Value of common Nordic aFRR capacity market confirmed May 11, 2023
- Rethinking the method for a Nordic capacity market for mFRR April 28, 2023
- Option space for future imbalance pricing in the Nordics – informal feedback and input welcomed April 24, 2023
- NBM – status update on the ongoing assessment of the mFRR EAM timeline March 23, 2023