Successful go-live of mFRR capacity market in Denmark

Successful go-live of mFRR capacity market in Denmark

An important milestone in the NBM-program was reached on 20 June 2023 when the Danish TSO Energinet had a successful national go-live of their mFRR capacity market.

About capacity market for frequency restoration reserves

The Nordic capacity market platform makes it possible for transmission system owners (TSOs) to pay balancing service providers (BSPs) for guaranteeing that they will provide bids in the energy activation market. Both producers and consumers can participate in the capacity market.

Denmark first one out with mFRR CM

Denmark is the first Nordic country where the BSPs can offer manual frequency restoration reserves (mFRR) bids to the Nordic capacity market platform for reserve capacity. This new national capacity market for mFRR is facilitated by Energinet, the Danish transmission system owner (TSO) and part of the NBM-program.

The other Nordic countries will follow

This is an important first step for a joint Nordic capacity market for mFRR. The next Nordic countries that are going live with their national markets are going to be Statnett and Svenska Kraftnät, aiming for their go-lives later in 2023. Fingrid does already have a national market for mFRR capacity and will join the platform at the time when the Nordic TSOs go live with a common Nordic market. The timing of the Nordic market go-live is dependent on the development and approval of method for the Nordic mFRR capacity market.

-The go-live of the Danish mFRR capacity market is a good step forward in the program. It will contribute to securing that the TSOs are able to secure sufficient balancing reserves in an efficient manner, paving the road for the transition to the automated balancing process that lies ahead of us, says NBM program director Alexander Jansson.

Very beneficial for Denmark

The national go-live for Energinet introduces a common market between the bidding zones DK1 and DK2, securing that resources can be utilized across the two bidding zones. This is important both from a socio-economic point of view, but also from a security of supply point of view, where the possibility to exchange capacity reserves minimizes the risk of under procurement in especially DK2 in scarcity periods.