Public consultation on the study on procurement strategies for a dynamic calculation of FRR means
Elia launches a public consultation on its study on the procurement strategies for a dynamic calculation of FRR means. It concerns a follow-up study on the daily prediction of non-contracted balancing energy bids published in 2021. The objective is to assess the opportunities and risks of procurement strategies which facilitate a dynamic calculation of the contribution of non-contracted balancing energy bids in the determination of balancing capacity requirements. The study contains:
- procurement solutions for accounting non-contracted balancing energy bids in the allocation of balancing means;
- identification of risks, including operational security and market stability;
- recommendations and an implementation roadmap.
After this consultation, the report will be finalized and published by Elia.
In line with Article 228 of the Belgian Federal Grid Code, Elia determines the dimensioning rules for Frequency Restoration Reserves or ‘FRR’ (also referred to as aFRR and mFRR). The last years, Elia focused on the implementation of dynamic dimensioning methodologies, i.e. calculating the reserve capacity needs for the next day based on the expected system risks.
With this study, Elia is widening the scope to the calculation of the volumes of balancing means to cover the reserve capacity needs. Up to now, these were covered by means of a ‘static’ calculation of the available non-contracted balancing energy bids, reserve sharing and balancing capacity. While the methodology currently in place meets all legal requirements, Elia investigates with this study the possibility of implementing a dynamic calculation of the contribution of non-contracted balancing energy bids in the determination of balancing capacity requirements. This study is the second step in an implementation roadmap presented in 2021, after the predictably of non-contracted balancing energy bids for the next day was demonstrated.
Note that the study is complemented with an annex containing the full study of the consultant Compass Lexecon, including the detailed analyses of different procurement strategies, as well as the conclusions of the workshops with market parties. This annex is attached for information but is not the subject of the consultation.
Elia invites the stakeholders to provide comments and suggestions on the consulted document via the online form below during the consultation period from September 15, 2022 to October 13, 2022.