mFRR - manuel Frequency Restoration Reserve - Former R3
The purpose of the present design note is to provide all stakeholders with a clear view on the functional evolutions that will be released on the 1st of December 2018 for mFRR (upon condition of the required regulatory approval):
- An activation price for non-CIPU R3 Standard & R3 Flex products.
- A common merit order activation for mFRR energy bids with unlimited number of activations (free bids and R3 Standard energy bids).
Those design changes have been presented to the stakeholders during different meetings of the Working Group Balancing in 2017 and 2018 and is line with the mFRR roadmap presented in 2016. A first version of the design note was sent to members of the Working Group Balancing in April 2018.
ELIA’s downward mFRR reserve capacity needs is currently covered by non-contracted bids for balancing energy offered by market parties via CIPU and non CIPU General Framework Agreements. So far and as expected for the nearby future (on the contrary to the upward mFRR reserve capacity needs), the market for non-contracted bids for balancing energy has always been liquid enough to cover ELIA’s downward reserve needs. However - seen the uncertainty brought by, among others, the forecast errors on renewable production - ELIA assessed how a downward reserve product design should look like, taking into consideration consistency with long term upward product vision. This product design is ready to be used to contract downward balancing capacity as from the moment the non-contracted bids for balancing energy become insufficient.
The product design is presented in this document and should be also considered as reference for the expected evolution of upward product design (expected entry into force begin 2020).
On 22.05.2018, ELIA published a study on the evolution towards a daily procurement of mFRR in which 4 topics were investigated:
- The advantages and disadvantages to evolve to a daily procurement cycle for mFRR (currently organized via monthly auctions);
- The possibility to evolve with the mFRR product mix towards a single reserve product (mFRR standard);
- The possible consideration of non-contracted bids in the mFRR procurement process in case of daily sourcing and;
- The impact of daily procurement on consideration of sharing agreements in the allocation of mFRR means.
This study was submitted to public consultation until 15.06.2018. ELIA received feedback from FEBEG, FEBELIEC and BDRA. Final version of the document can be found in English here.