Updated implementation plan for the volume limitation on static FCR-D upward regulation

The Nordic transmission system operators (TSOs) Energinet, Fingrid, Statnett and Svenska kraftnät will implement a limitation on the amount of procured capacity from static resources in the national markets for FCR-D upward regulation on 29th September with delivery day on 30th September 2026. A fixed volume limitation will be implemented initially. The deployment will not cause any significant changes to the practices or operational activities of Finnish reserve suppliers.

Background information 

In order to ensure stable operations, it was decided in 2023 to distinguish between FCR-D delivered either as a static or a dynamic product. This decision was made to avoid unwanted effects on frequency stability which may cause operational risks when FCR-D is activated, whereby a certain share needs to come from assets delivering FCR-D dynamically.

In order to ensure this, the Nordic TSOs will implement a volume limitation (maximum) on the procurement of static FCR-D upward regulation within the synchronous area starting from 29th September 2026. The limitation will initially consist of a fixed volume restriction, with a variable part to be added at a later stage.

A corresponding plan for FCR-D downward regulation, where the current amount of prequalified static resources is lower, will be developed later on. Previous news about this topic: Implementation plan for the volume limitation on static FCR-D upward regulation - Fingrid. 

The volume limitation on static FCR-D will be implemented in the process of bid selection. Static FCR-D bids will thus be treated in the same way as dynamic FCR-D bids up to the volume limitation. Furthermore, accepted bids of static FCR-D will receive the same marginal price as accepted dynamic FCR-D bids. Hence, there will still be only one price. 

Implementation of a fixed and a variable volume limitation in two steps 

There is a strong correlation between the acceptable amount of static FCR-D and the levels of inertia in the system, which varies over the year. When levels of inertia are low, the volume limitation on static FCR-D will be limited further than the fixed limitation. In the long term the volume limitation will therefore consist of two components: 

• A fixed volume limitation (percentage) on the maximum amount of static FCR-D, that is valid all year round. 

• A variable volume limitation (percentage) that is dependent on the level of inertia in the system and can therefore vary on an hourly basis. 

The fixed volume limitation will initially be set to 50% of the total Nordic demand for FCR-D upward regulation. At a later stage a variable volume limitation will act as an addition to the fixed volume limitation, meaning that the total volume limitation on static FCR-D upward regulation can be lower than or equal to 50%, depending on the level of inertia in the system. The calculation of the quota including both the fixed and variable components is described in Table 1. The Nordic TSOs will inform the stakeholders ahead of the implementation of the variable component.

Table 1. Total limitation on the Nordic level as a function of the system inertia level. A forecast of the inertia will be used to set the variable component for each market time unit. The forecast will include a deduction of the inertia level corresponding to the possible loss of inertia from the reference incident. The values will be interpolated between the stated inertia levels.   

Based on estimates from the previous year, more strict limitations are expected less frequently, with restrictions below 40% occurring about 2% of the time, and below 35% around 0.1% of the time.

To avoid unnecessary impact on the FCR markets, the Nordic limitation will be distributed among the national procurements of the TSOs in the following way: 

1. The Nordic limitation is distributed according to the FCR sharing keys.

2. For each TSO, a reference value is calculated based on historical supply of static FCR-D with a margin for additional prequalification and changes in supply. The reference value is reviewed quarterly. 

If a TSO has received a share of static FCR-D which exceeds its reference value, the excess is redistributed to TSOs with shares smaller than their reference value. Resharing is also done proportionally to the FCR sharing keys. For the go-live the limitation in Fingrid control area is set at max 308 MW of static FCR-D. Fingrid expects the market impact in Finland to be limited. The number will change later during quarterly reviews of the quotas and during the implementation of the variable volume limitation. The deployment will not cause any significant changes to the practices or operational activities of Finnish reserve suppliers. 

By setting limitations on the procurement of static FCR-D, the TSOs secure a sufficient minimum share of dynamic FCR-D in accordance with the FCR dimensioning methodology pursuant to Article 153 of the System Operation Guideline. The TSOs will amend the methodology with a more detailed method for calculating the minimum share by March 2028. This timeline allows the TSOs to gain practical experience from applying the initial limitation, which serves as an important input to review the method and to further develop it into a final version to be approved by the regulatory authorities.  

More information 

Taneli Leiskamo, Fingrid Oyj, tel. +358 30 395 5240. 

Elisa Alanen, Fingrid Oyj, tel. +358 30 395 4369 

Email addresses are in the format firstname.surname@fingrid.fi.