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 >
Balancing energy bids may be given for all resources that can carry out a 5 MW change of power in 15 minutes (1 MW if using electronic activation). The bids are given to Fingrid no later than 45 minutes before operational hour in accordance with the balancing energy bid instructions.
Balancing energy bids should include the following information about adjustable capacity:
- activation hour of the bid (h)
- power (MW)
- price (€/MWh)
- the name of the balancing resource*
*Names, Regulation Object -identification as well as the transmission area in which the resource is located will be determined in the information exchange platform VAKSI for each balancing resource.
Balancing energy bids are either upregulating or downregulating bids. In case of upregulation, the resource owner either increases production or decreases consumptions and therefore sells energy to Fingrid. In case of downregulation, the resource owner decreases production or increases consumption and buys energy from Fingrid.
A Nordic balancing energy bid list is prepared from all balancing energy bids by setting the bids in order of price. For balance management and frequency maintenance, the balancing energy bids are used in order of price to the extent allowable by the operational situation of the power system. Of the up regulating bids, the cheapest is used first and, correspondingly for down regulating bids, the most expensive is used first. If, because of the operational situation, a bid cannot be used, it is then left unused.
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.
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