Balancing energy and balancing capacity markets (mFRR)
Fingrid maintains a balancing energy market together with the other Nordic transmission system operators. A reserve provider is obliged to give an amount of up regulating bids, which corresponds to accepted capacity bids, to the balancing energy market in exchange for a financial compensation. A balancing energy market contract with Fingrid is needed to participate in the market.
The Nordic TSOs activate bids on the balancing energy market whenever necessary during normal operation or disturbances. Activation is done manually from Fingrid's Main Grid Control Center.
The balancing capacity market was introduced in the spring of 2016. A reserve provider whose capacity bid is accepted on the balancing capacity market is obliged to give up regulating energy bids to the balancing energy market in exchange for a financial compensation. The balancing capacity market is used to secure that Fingrid has a sufficient amount of Manual Frequency Restoration Reserve to cover the dimensioning fault also during maintenance of Fingrid's own and leasing reserve power plants.
From 20.11.2023 onwards, all invoicing of the balancing energy market will be handled be the imbalance settlement unit eSett. Any Balancing Service provider, who does not have an Imbalance settlement agreement with eSett through their Balance responsible party role, must sign a Balancing Service Settlement Agreement with eSett. More information about the Balancing Service provider settlement agreement and eSett’s invoicing model can be found on eSett’s website >
mFRR bids can be submitted for resources that are able to implement a power change within 12.5 minutes in accordance with the minimum bid size.
mFRR Capacity bids
The minimum bid size for the mFRR capacity market is 1 MW and bids are submitted with an accuracy of 1 MW. Bids for the next day will be submitted at 08:30 (Finnish time) on the Fifty MMS market platform maintained by the Nordic TSOs in accordance with Fingrid's separate Reserve Trading and Information Exchange and BSP - Implementation Guide Nordic MMS – mFRR capacity market guidelines.
mFRR Energy bids
In the mFRR energy market, the minimum bid size is 1 MW and bids are submitted with an accuracy of 1 MW.
mFRR offers are submitted to Fingrid no later than 45 minutes before the market period (15 minutes) in accordance with Fingrid's Reserve Trading and Information Exchange Guidelines.
The prices of balancing energy are set based on the balancing carried out in the Nordic balancing energy markets. Both an up regulating and down regulating energy prices are set for each operational hour.
The up regulating price is the price of the most expensive up regulating energy bid used, however at least the price in the Finnish price area in Nord Pool (Elspot FIN).
Everyone from whom Fingrid has ordered up regulating during the hour receives payment for the energy agreed based on the up regulating energy price.
The down regulating price is the price of the cheapest down regulating energy bid used, however no more than the price in the Finnish price area in Nord Pool (Elspot FIN).
Everyone from whom Fingrid has ordered down regulating during an hour pays the down regulating energy price for the agreed energy.
The balancing energy prices also serve as a basis for the pricing of imbalance power.
Balancing energy prices are primarily published on Nord Pool's website no later than two hours after the operational hour in question.
Details
Otso-Ville Rinne
Specialist
tel. +358 30 395 4142
Jukka Kakkonen
Expert
tel. +358 30 395 5334