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The Nordic TSOs plan to implement a common Nordic aFRR capacity market with cross-zonal capacity reservations

The Nordic TSOs (Svenska kraftnät, Energinet, Fingrid and Statnett) plan to implement a common Nordic aFRR capacity market with cross-zonal capacity reservations. As part of the assessment, the Nordic TSOs have been asked by the Nordic NRAs to ask for stakeholder input on the assessment report.

The introduction of the Nordic aFRR capacity market can be done, when the day-ahead cross-zonal capacities are calculated pursuant to the capacity calculation methodology for the day-ahead market (flow-based), i.e. EBGL article 38(5).

The flow-based external parallel run was launched early March 2022 and it is uncertain when flow-based will be sufficiently well-working to meet all the KPIs set by the NRAs for allocation. For this reason, the Nordic TSOs have assessed it as necessary to develop a report on the functioning of flow-based, strictly related to showing the fulfilment of the criteria (KPI) related to the introduction of the Nordic aFRR capacity market. The report below constitutes the basis for an NRAs assessment of whether flow-based is sufficiently well performing to calculate capacities in the Nordic aFRR capacity market, i.e. the requirement in EBGL 38(5).

Input from stakeholders are welcome

Deadline for feedback is 14 October 2022.

As part of the assessment, the Nordic TSOs have been asked by the Nordic NRAs to ask for stakeholder input on the assessment report. The Nordic TSOs therefore ask for input on the stakeholders view on the TSOs ability to fulfill article 38(5) in EBGL.

The consultation is therefore not on the decisions for the Nordic aFRR capacity market made by ACER in 2020 (decision 19-22/2020) or on the decision on the long-term capacity calculation methodology – the flow-based methodology (decision 16/2019).

For more information about the decisions on the aFRR capacity market please see:

Decision No 19/2020 (.pdf) Opens in a new window
Decision No 20/2020 (.pdf) Opens in a new window
Decision No 21/2020 (.pdf) Opens in a new window
Decision No 22/2020 (.pdf) Opens in a new window

For more information about the decisions on the long-term capacity calculation methodology please see:

Decision No 16/2019 (.pdf) Opens in a new window

Please find the Evaluation report for go-live of Nordic aFRR Capacity Market here: Evaluation report for go-live of Nordic aFRR Capacity Market - October 2022 (.pdf) Opens in a new window

Please provide your feedback in the questionnaire here. Opens in a new window

As part of the consultation the Nordic TSOs will hold a webinar on the evaluation report on 10 October from 9:30 to 10:30 CET. Click here to join webinar Opens in a new window

The webinar will focus on potential comments and questions from the market participants.