New FCR market design

04.07.2019

The collaboration of central European transmission system operators (TSOs) in the procurement and exchange of Frequency Containment Reserve (FCR) is the first regional cooperation in Europe to implement market harmonisation in compliance with the EU Guideline on Electricity Balancing (EBGL). The TSOs that make up the FCR consortium are: the Austrian, German and Swiss TSCNET shareholders APG, 50Hertz, Amprion, TransnetBW, and Swissgrid, the Dutch-German shareholder TenneT as well as the Belgian TSO Elia and the French TSO RTE, which are supplemented by further TSCNET shareholder Energinet from Denmark as non-active member.

The FCR cooperation was founded in the summer of 2016 and has conducted two consultation rounds in the last two years, resulting in a final proposal, which was approved by all national regulators involved. The first milestone in the advancement of the largest FCR market in Europe has now been reached in the implementation of a new FCR market design. In addition to shortening the product length from a week to a day, the cooperation introduces a marginal pricing system. The aim is to reduce procurement costs and create incentives for new balancing power providers and technologies to enter the market.

The FCR cooperation introduces a new market design

Linkup
> See TenneT press release, in German (html)