Public consultation on the Proposal for Amendment to the Balancing Rules in the context of an adaptation of the FRR activation strategy

Context

In the frame of the incentive on the economic optimization of the use of FRR balancing products, Elia identified that thanks to recent market changes, significant FRR activation cost reductions could be achieved by adapting the current FRR activation strategy. This could lead to significant benefits on imbalance price formation and BRP invoices as well. Specifically, Elia identified that aFRR could be used more extensively in situations during which it is expected to be less expensive than mFRR under the condition that it does not degrade operational security. In the coming months and years, there might however be important evolutions in the market conditions (e.g., related to the connection of additional TSOs to the aFRR- or mFRR-Platform). To enable improvements in the mFRR activation strategy while considering the changing market circumstances, Elia proposes to clarify in article 13 of the Balancing Rules that Elia may, for a temporary period, deviate from the current mFRR activation strategy with the aim to reduce the average FRR balancing activation costs while maintaining safe operations. The proposed amendments enable some flexibility to adapt the FRR activation strategy to the changing circumstances while maintaining the aim of minimizing the FRR activation costs under operational constraints, and this until long-term market conditions stabilize.

Elia intends to adapt its FRR activation strategy in the spirit of a “proof-of-concept (POC)” for which the significant potential benefits that have been identified must be confirmed after implementation. The intention is to start this “POC” after the mFRR-Platform (MARI) connection is stabilized and a short-term monitoring of the new market conditions in the post-MARI connection confirms the potential. Elia commits to monitor (through KPIs) and communicate about the efficiency of the “proof-of-concept” via presentations in the Working group Energy Solutions.

In addition to this change, Elia would also like to take the opportunity to propose an amendment to Article 12 of the Balancing Rules for the moments Elia is disconnected from the aFRR-Platform. Indeed, when Elia is disconnected from the aFRR-Platform, Elia currently caps the local merit order to the dimensioned aFRR volume. During the public consultation of the amendment of the Balancing Rules to introduce the aFRR elastic demand, FEBEG shared a different perspective on the approach, indicating that upward (downward) aFRR Energy Bids below (above) the price threshold for the upward (downward) elastic aFRR demand should not be capped. Elia agreed with FEBEG that the alternative solution proposed by FEBEG has certain benefits and would be more consistent with the approach for the elastic aFRR demand when connected to the aFRR-Platform. However, considering that the additional implementation requirements would put at risk the targeted date of the connection to the aFRR-Platform, Elia indicated to consider the proposal of FEBEG for a future revision of the Balancing Rules. The CREG has indicated in its Decision (B)2843 of September 2024 to agree with this approach. In this proposal for amendment, Elia thus proposes to implement the change as proposed by FEBEG.

Period

Elia invites all stakeholders to submit any comments and suggestions they may have on the document submitted for consultation.

The consultation period runs from 5^th to 26^th June 2025 (3 weeks).

After the consultation period, Elia will collect all comments and feedback from the market parties. Elia will analyze these comments and integrate them into a consultation report together with Elia’s responses. In addition to the consultation report, Elia will publish the reactions of the market parties (including names) on its website, unless it is explicitly stated that the contribution is to be considered confidential.