Successful start of FCR auctions

01.07.2020

The cooperation on regional procurement and exchange of frequency containment reserve (FCR) is a voluntary initiative of eight transmission system operators (TSOs): the six TSCNET shareholders 50Hertz, Amprion, and TransnetBW from Germany, APG from Austria, Swissgrid from Switzerland, and the Dutch-German TSO TenneT, as well as Elia from Belgium and the French TSO RTE. The FCR project is the first regional cooperation for a common market based on the methodology for the exchange of control reserves set out in the EU Guideline on Electricity Balancing. Within the scope of a cooperation model with Amprion, the Luxembourg TSCNET customer Creos is also involved.

The next milestone in the development of the largest European market for primary balancing power reserve has now been reached, as the first D-1 auction for FCR with 4-hour products was successfully conducted on 30 June 2020. This means, the FCR cooperation reduces the product length from one day to four hours and thus the market for primary balancing power is brought closer to real time.

Due to stronger competition between service providers and technologies, the joint auction allows TSOs to procure FCRs at minimum cost to end-users while offering a large common market for all providers of balancing services. It also increases the market attractiveness for short-term flexibility, limits price volatility and improves the security of grid operation by executing cross zonal procurement of FCR. The FCR market, already the largest in Europe, will be extended to western Denmark and Slovenia in the first quarter of 2021, so that with Energinet and ELES two further TSCNET shareholders will broaden the project.

The FCR cooperation successfully conducted the first D-1 auction for FCR with 4-hour products 

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> See Swissgrid news release (html)

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Luxembourg integrated into FCR cooperation

01.06.2020

Eight central European transmission system operators (TSOs) cooperate in the regional procurement and exchange of Frequency Containment Reserve (FCR). Their joint FCR project is the first regional cooperation in Europe to implement market harmonisation in accordance with the EU Guideline on Electricity Balancing. The participating TSOs are APG, 50Hertz, Amprion, TransnetBW, and Swissgrid – the Austrian, German and Swiss TSCNET shareholders –, the Dutch-German shareholder TenneT as well as the Belgian TSO Elia and the French TSO RTE. It is intended to extend the joint FCR procurement towards western Denmark, so that the central European TSOs are supplemented by Energinet from Denmark as a non-active member.

Luxembourg was missing in the cooperation so far, but cross-border primary control reserve (PCR) between Germany and Luxembourg is now also possible: Since 1 June 2020, balancing service providers (BSPs) from Luxembourg are participating in the joint tender for FCR cooperation. For this purpose, the TSO Amprion, whose German control area is bordering the Grand-Duchy, and the Luxembourgian TSCNET customer Creos have developed a cooperation model. Under this model, Amprion assumes the role of the connecting TSO, carries out the prequalification of the BSPs, concludes the framework agreement for PCR, and takes over the settlement with the BSPs from the Creos control area.

Since Amprion and Creos operate a joint load-frequency-control area, a pooling of technical units within this common area is permissible. Thus, a pool can include Luxembourgian as well as German units that provide balancing services. This means that a BSP may combine generation units or controllable consumer loads from both countries and offer them collectively on the PCR market.

The central European FCR cooperation was extended to Luxembourg (picture: Cedric Letsch)

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> See Amprion press release, in German (html)

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Integrated market in Switzerland

13.02.2020

In Continental Europe, the synchronised frequency is of 50 Hz. It is a core task of every transmission system operator (TSO) to keep the balance between power production and consumption and the grid frequency stable. The Swiss TSCNET shareholder Swissgrid, the national TSO, operates a market for ancillary services for this purpose. Power plants and other auxiliary service providers (ASPs) in Switzerland hold primary, secondary and tertiary control reserve capacities on behalf of Swissgrid and, in case of frequency deviations, allocate them against compensation. Primary and secondary control energy is retrieved automatically and tertiary control energy manually.

Swissgrid is constantly striving to further develop the ancillary services market with innovative solutions. These include the bundling of manually retrieved products for frequency control and for international redispatch into a single integrated market. A market platform suitable for this purpose, which enables the retrieval of both, tertiary control energy and energy for international redispatches, was successfully launched by Swissgrid last week. This is possible because the two products have the same characteristics and can be called up with the same lead time of 15 minutes.

The specifications of the platform design allow the market offers to be freely changeable. This means, above all, that there is no longer any competition between the tertiary control energy market and the intraday market. ASPs can now offer the energy not sold in the intraday market on the integrated market. Another new feature is that tenders can be processed using the communication protocol of the Energy Communication Platform (ECP) of the European Network of Transmission System Operators for Electricity (ENTSO-E), which enables direct communication between the IT systems of the ASPs and the Swissgrid bidding platform. This process automation leads to greater transparency.

Swissgrid has launched a platform for the integration of the tertiary control energy market and the international intraday market (picture of the Mettlen-Lavorgo powerline: Albinfo / CC BY 3.0)

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> See Swissgrid news release (html)

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Austro-German cooperation on control reserve

05.02.2020

The Austrian transmission system operator (TSO) APG and the four German TSOs 50Hertz, Amprion, TenneT, and TransnetBW are intensifying their cooperation in terms of balancing energy. Since December 2019, the five TSCNET shareholders have been exchanging minutes reserve, i.e. the provision of short-term power reserves to balance fluctuations in generation and consumption that affect frequency. Minutes reserve comes into play after primary control and secondary reserve, the two short-term effective balancing energies. Austria and Germany are thus the first countries in Europe to cooperate on all types of control reserve and make a significant contribution to secure electricity supply in Europe.

The cooperation with the project name “GAMMA” (German-Austrian Manual Merit Order Activation) is trendsetting, as it is the first collaboration in the field of minutes reserve to fulfil the objectives of the EU guideline for electricity balancing on a regional scale. Germany and Austria are testing a regional internal market for the joint utilisation of minutes reserve and will contribute their new experience with the integration of control energy markets to the European “MARI” (Manually Activated Reserves Initiative) project.

Beyond the requirements of the guideline, the Austro-German cooperation will be expanded in February 2020 to include the joint procurement of secondary reserves. It is intended that in an initial phase up to 80MW, later up to 280MW, can be procured across borders. The cost-benefit analysis for the allocation of cross-border transport capacities was jointly developed by the cooperating TSOs. It compares the market value of cross-border transmission capacity for the day-ahead market with that of the secondary reserve, thereby optimising procurement and determining the amount of cross-border transmission capacity allocated to the secondary reserve. This cooperation also represents a lighthouse project in Europe and anticipates the goals of the EU Clean Energy for All Europeans Package.

The Austrian TSO APG and the four German TSOs 50Hertz, Amprion, TenneT, and TransnetBW exchange minutes reserve in a regional internal market

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> See 50Hertz press release, in German (html)
> See Amprion press release, in German (html)
> See TransnetBW press release, in German (html)

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German TSOs open consultation on control reserve

13.04.2018

The four German transmission system operators (TSOs) 50Hertz, Amprion, TenneT, and TransnetBW have opened a public consultation on their draft for the revision of modalities for reserve control providers. The four TSCNET shareholders thus fulfill a requirement from the EU Guideline on Electricity Balancing of 23 November 2017. Market participants are welcome to comment on the draft from 12 April to 13 May.

At the core of the consultation are the modalities for providers of control reserve for primary control power, secondary control power, and minutes reserve. The consultation will be accompanied by a workshop on 23 April in Nuremberg in the German state of Bavaria. Here, market players have the opportunity to discuss the new rules for reserve control suppliers with representatives of the TSOs.

> See Amprion press release, in German (html)
> See TenneT press release, in German (html)
> See TransnetBW press release, in German (html)
> Access to consultation and information on workshop at regelleistung.net (html)

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Cost-effective balancing in Austria

21.02.2017

The assiduous efforts undertaken by TSC member APG, the Austrian transmission system operator (TSO), to optimise control reserve are paying off. Since 2015, the costs for stabilising the Austrian electricity grid are decreasing significantly, and with €90m spent on control resrve in the last year, APG is able to announce a cost reduction of 37% in comparison to 2015.

The causes of this beneficial development are twofold. On a national level, several new suppliers have joined the balancing market. “The new participants in the regulatory energy market contributed to significantly more competition in this market”, explains Ulrike Baumgartner-Gabitzer, Chief Executive Officer at APG. Internationally – apart from individual agreements with neighbouring countries – APG participates in the largest European transnational cooperation on the procuration and exchange of Frequency Containment Reserve. Also of particular importance is APG’s cross-border cooperation for automatic Frequency Restoration Reserve with the four German TSOs 50Hertz, Amprion, TenneT, and TransnetBW. “This means that Austria is actively involved in all relevant projects and is even an initiator,” complements Thomas Karall, APG’s Chief Financial Officer.

> See APG press release, in German (html)

Picture: Lukas Dostal / Austrian Power Grid AG (APG Control Centre)

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