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manual Frequency Restoration Reserve

Settlement of the manual Frequency Restoration Reserve

Balancing power capacity market (BCPM)

Capacity remuneration

In the case of mFRR, 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 the mFRR

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 accounting.

The verification of the obligations from the BPM, to offer at least the awarded capacity in the BCPM via the 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 grid 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 mFRR provision is settled according to the mFRR settlement model description. Provision leads to remuneration with the maximum of the bid price and the valid marginal price of the MARI platform. Insufficient provision can lead to a corresponding penalty for the associated deficit with the valid marginal price (incentive component "Provision").

The dispatched volumes (schedule) are considered in the provider's balance group account, thereby neutralizing their provision in the balance group settlement.

Access limitations

If a balancing service provider violates their obligation for automatic accessibility (MOLS communication procedure) and dispatch can only be conducted by phone and implemented by the balancing service provider, the connecting TSO has the right to settle the incentive component "Accessibility."

The incentive component is derived from the awarded capacity and the proportion of time (MWh) during which the capacity was only available by phone or would have been available, multiplied by the average volume-weighted capacity price of all individual contracts awarded on the balancing capacitypower market for the affected product time slice and dispatch direction.

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.

Underperformance

If the provision is below the minimum requirements of the tolerance band, the corresponding difference generally constitutes underperformance and is settled under the incentive component "Provision."