First daily auction for the national mFRR capacity market on 17 October
Svenska kraftnät are now starting up the national capacity market for manual Frequency Restoration Reserve, mFRR. The first daily auction date is set for Tuesday 17 October regarding delivery on Wednesday 18 October. The purpose of the mFRR capacity market is to stabilize the availability of bids on the regulation power market
Effective balancing of the power system is vital to maintain a high security of supply, and the current energy activation market, also known as the regulation power market, does not give adequate incentives to provide sufficient liquidity in all price areas.
– The purpose of the mFRR capacity market is to ensure a sufficient supply of regulation bids during the operational phase by acquiring part of the needed volumes on a day-ahead market. The mFRR providers submit capacity bids, where an accepted bid means compensation for a commitment to submit the corresponding regulation bids to the regulation power market, says Mikael Winai, market analyst at Svenska kraftnät.
Conditions for capacity market participation
Participants on the mFRR capacity market are required to have corresponding regulating resources prequalified for participation on the regulation power market.
The daily auctions have gate closure time 07:30 for provisioning of capacity during the following day. Bids are submitted per hour and price area, separately for up regulation and down regulation, up to seven days in advance. Accepted bids are remunerated at the marginal price per price area, and accepted bid volumes are matched and settled against corresponding submitted volumes on the regulation power market.
Procurement plans will be published quarterly
The planned demand for mFRR capacity per electricity area will be published in advance of each quarter as a weekly procurement schedule.
– Initially, this schedule is adapted to gradually establishing the new market. The actual demand per auction will vary based on hourly demand and the availability of voluntary regulatory bids, says Mikael Winai.
In future years, the procurement will be adapted to the need that corresponds to the dimensioned FRR volumes for balancing based on imbalances per price area.
The planned schedule for the current quarter Q4-2023 includes up to 200 MW during selected hours for up- and down-regulation.
Market results are published
The market results will initially be published on the NUCS platform shortly after each auction is completed. Svenska kraftnät will in the near future also amend the Mimer platform to publish corresponding prices and volumes for better access to historical data.
Contact
For queries about the mFRR capacity market, please contact Svenska kraftnät on email: mFRR@svk.se.
Links to further information about market rules and participation
BRP/BSP agreement – mFRR appendix (.pdf) Opens in a new window (in Swedish)
Detailed schedule for maximum capacity procurement during Q4-2023 (.docx) Download