FCR - Frequency Control Reserve - Former R1

 

FCR Roadmap 2016 - 2019

Over the last years ELIA observed the emergence of new type of technologies (renewable, storage, load…) into the production mix. These technologies are also able to efficiently provide services to the Transmission System Operator (TSO), such as primary reserves (FCR or R1).

For more explanation regarding the current R1 product please consult the product sheet.

In order to facilitate their integration into the primary reserves market, Elia has identified a set of required contractual, design and settlement changes and prioritized them among other R1 related developments into a “R1 Roadmap”, presented to market players during the Taskforce balancing of January 27th 2016 and illustrated in the figure below:

 

Elia has already successfully implemented the 2 first steps (“Flexibility from Non-CIPU” and “Open R1 products to BSP”). As explained in the FCR road map above, the next foreseen step in the FCR product design evolution is to “Integrate New Technologies”. Elia will implement this evolution on 1st May 2017 via 3 separate streams with distinct deadlines and deliverables, as presented in the planning below:

 

Technical stream:

Explain the technical requirements which need to be respected when delivering primary control services. A FCR technical design note is published from June 30th 2016.

Technical Design Note for Primary Frequency Control Reserves

Market Design stream:

  • Explains how the settlement processes (availability and activation control) will evolve. A FCR settlement design note is published for consultation from November 7th until December 2nd. The final FCR settlement design note shall be published on December 30th 2016.

FCR Settlement Design Note

  • Explains practical details of the new prequalification process. A FCR prequalification design note is published for consultation from November 7th until December 2nd. The final FCR prequalification design note shall be published on December 30th 2016.

FCR Prequalification Design Note

Contractual stream:

Once the design for the new FCR product design is finalised, Elia will translate the deliverables of the two previous streams into new Balancing rules and new contracts (GFAs) being applicable as from May 1st 2017.

  

 

EU Developments

Cross border exchange of FCR

Since August 2016, Elia is a member of the FCR cooperation where it participates in a common procurement of FCR with other 5 countries (Austria, France, Germany, Netherlands and Switzerland). Denmark is also expected to join the FCR cooperation in the near future.

Elia is procuring part of the FCR volume by a national auction and part from the FCR cooperation, both on a weekly basis.

 

Continuous evolution of FCR cooperation

Next to the operational tasks of regional FCR procurement, the FCR cooperation continuously improves the regional market design in order to further increase liquidity by allowing the integration of all technologies capable of offering flexibility. The members of the FCR cooperation consider the opinion of the stakeholders as an important input to their roadmap. Regular exchanges have already taken place and will be further organised. More information about previous conclusions on required market adaptations and next steps can be found on the ENTSO-E website following the link.