Minimum bid size decreases to 1 MW in the Finnish balancing capacity market
The Energy Authority has approved revised terms and conditions for manual frequency restoration (mFRR) reserve providers which enable 1 MW minimum bid size in the balancing capacity market (capacity market for mFRR). The minimum bid size decreases from 5 MW to 1 MW from 20.7.2022.
Bid size in the balancing energy market (energy market for mFRR) remains unchanged, for now. In the balancing energy market, reserve provider can have one up-regulation and one down-regulation bid between 1 – 4 MW if reserve provider is using electronic activation and the minimum bid size of 5 MW could not be otherwise met. Fingrid is currently investigating possibility to introduce 1 MW minimum bid size also in the balancing energy market. The aim is to decrease the minimum bid size in the balancing energy market by 22.5.2023.
Smaller minimum bid sizes improve bidding of reserves and make it easier for new providers to enter the market. In Finland, the procurement of mFRR capacity is increasing. More up-regulation capacity is needed due to commissioning of the Olkiluoto 3 nuclear power plant. In 2023, down-regulation capacity procurement is starting due to the energy transition.
Laura Ihamäki, Fingrid Oyj
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