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automatic Frequency Restoration Reserve

Settlement of the automatic Frequency Restoration Reserve

Balancing power capacity market (BCPM)

Capacity remuneration

In the case of aFRR, the remuneration for capacity provision is based on the awarded capacity in the balancing power capacity market multiplied by the corresponding bid price. The remuneration is done according to the Pay-as-Bid pricing method. This means each provider receives the price they specified in their bid.

Performance price development of aFRR

Unavailability

If a provider does not or does not fully meet their obligations from the BCPM, this can lead to a proportional reduction of their capacity remuneration for the affected bids. This is shown as a separate item in the settlement.

The verification of the obligations from the BCPM, to offer at least the awarded capacity in the BCPM via the balancing energy market (BEM), is done across gird areas. This allows the provider to optimize their portfolio (e.g., in case of technical unit failures) between the BCPM and BEM. Deficits determined by the TSO are also distributed across gird areas to the provider's bids, starting with the highest capacity prices.

In the event of recurrence, the TSO can settle the incentive component "BCPM Provision." Here, the unavailable capacity is multiplied by the maximum of the average capacity price for the corresponding product time slice and the ID AEP plus a surcharge. Details can be found in the modalities.

Balancing energy market (BEM)

Capacity remuneration

Bids submitted in the BEM do not receive capacity remuneration.

Energy remuneration

The aFRR provision is paid according to the aFRR settlement model description. A tolerance band is placed around the setpoint specified by the load-frequency controller to the balancing service provider, measured in seconds. Provision within the tolerance band leads to remuneration with the maximum of the bid price and the valid marginal price of the PICASSO platform.

The settled volumes are considered in the provider's balance group account, thus neutralizing their provision in the balance group settlement.

The settlement-relevant values of the aFRR are made available to the provider on the following workday as part of the daily settlement.

Unavailability

If the provider does not fully meet their standby obligation, this can lead to a proportional time-based settlement of the incentive component "BEM Provision." Here, the unavailable capacity is multiplied by the maximum of the average capacity price for the respective product time slice and the ID AEP plus a surcharge. Details can be found in the modalities.

Reasons for violating the standby obligation generally exist if the TSO cannot call up the awarded capacity or could not have called it up due to the provider's fault. These include, among others:

  • The data submission shows a lower standby capacity compared to the awarded capacity
  • The data connection is disrupted for longer than 30 seconds
  • The provider's pool has been set to "inactive" by the TSO due to problems with the provider
  • The provider does not provide ex-post data for a provision check upon request by the TSO

Underperformance

If the provision is below the minimum requirements of the tolerance band, the corresponding difference generally constitutes underperformance. This is settled under the incentive component "Provision" if underperformance occurs in more than 5% of the seconds intervals within a rolling 5-minute window.