Frequency Containment Reserves (FCR)
In accordance with the objectives of the COMMISSION REGULATION (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (GLEB), the common market for procurement and exchange of FCR (FCR Cooperation) aims at the integration of balancing markets in order to foster, but not limit to, effective competition, non-discrimination, transparency, new entrants and increase liquidity while preventing undue distortions. These objectives must be met in consideration of secure grid operation and security of supply.
This regional project currently involves ten Transmission System Operators (TSOs) from seven countries. These are the TSOs from Austria (APG), Belgium (Elia), Switzerland (Swissgrid), Germany (50Hertz, Amprion, TenneT DE, TransnetBW), Western Denmark (Energinet), France (RTE) and the Netherlands (TenneT NL).
The Austrian, Belgian, Dutch, French, German and Swiss TSOs currently procure their FCR in a common market. Extension towards Western Denmark is foreseen and welcomed by all involved TSOs and National Regulatory Authorities (NRAs).
The FCR Cooperation works currently with weekly auctions with one weekly symmetric product. The auction takes place on Tuesday afternoon and applies for the next delivery week. The FCR Cooperation is organised with a TSO-TSO-model, where the FCR is procured through a common merit order list where all TSOs pool the offers they received. The interaction with Balancing Service Providers (BSPs) and the contracts between the TSOs and BSPs are handled on a national basis along with the responsibility of delivery.
Further development of the market design will facilitate the access for smaller market players, improve the investment signals and increase socio-economic benefits. The process of market design evolution is based on a close cooperation between all the TSOs, NRAs and stakeholders of the involved countries.
Historical evolution & Outlook
With the ongoing changes in the technology mix, e.g. increased share of renewables, demand side response and storage technologies, TSOs and NRAs decided to assess the current status of the FCR Cooperation and study the possible market design evolutions. The FCR Cooperation project partners launched a public consultation in January 2017, seeking market participants’ views on detailed design options and proposed choices to be implemented.
Extension towards France has been realised in mid-January 2017.
Resulting from the public consultation, the consultation report was published in May 2017, including TSO analysis and subsequent TSO conclusions. Foreseen market design evolution with detailed information is provided in the document
Article 33 (1) GLEB provides that TSOs exchanging […] balancing capacity shall develop a proposal for the establishment of common and harmonised rules and processes for the exchange and procurement of balancing capacity. Since the TSOs of the FCR Procurement are exchanging FCR, they developed a Draft Proposal (together with FCR Draft Proposal - Article 34_1). In accordance with GLEB Article 10, a public consultation on the Draft Proposals was undertaken beginning of 2018. TSOs are currently assessing views of stakeholders resulting from the consultation, preparing justifications for including or not including the views resulting from the consultation and finalizing proposals for submission for regulatory approval. Documents will be published on this website.
Extension of the joint FCR procurement towards Western Denmark is currently foreseen and welcomed by all involved TSOs and NRAs.
In case you are interested in the FCR Cooperation or have any questions, please contact FCR@entsoe.eu.
Press Releases and Updates
- 15 February 2018 Consultation on Proposal for FCR cooperation market design
- 31 May 2017 Consultation Report “FCR Cooperation”
- 2 January 2017 Public consultation on “FCR Cooperation” potential market design evolutions