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First Milestone in reforming Europe’s biggest market for primary balancing power

Successful go-live of daily D-2 auctions for Frequency Containment Reserves (FCR)

On 27th June, the FCR Cooperation takes the first step in implementing a new FCR market design to procure nearly half of Europe’s 50 Hertz synchronous area’s FCR capacities. The FCR Cooperation has the aim of sourcing primary balancing power and consists of 50Hertz, Amprion, APG, Elia, Energinet (not operational member), RTE, Swissgrid, TransnetBW, TenneT Netherlands and Tennet Germany.

Besides shortening the product length from one week to one day, the FCR Cooperation introduces a marginal pricing scheme. Therefore a complex allocation algorithm with constraint depending optimisation was developed to handle different price areas.

The aim is to reduce procurement costs and foster entry of new Balancing Service Providers and new technologies.

This is the first regional cooperation which realizes market harmonisation under the methodology of the Guideline on electricity balancing (EBGL). The roadmap of evolving the market was discussed with inclusion of stakeholders and NRA of the regional cooperation.

During the last two years, two consultation rounds were processed with detailed proposals drafted and consultation reports assessed. It results in a final regional proposal according to Art 33 of EBGL which was approved by all NRAs.

Next steps, in July 2020, are the change to 4 hour products and bringing gate closure time closer to delivery time.



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