Primary control - Frequency containment reserve (FCR)
In contrast to secondary and tertiary control reserve, the market for primary control reserve only includes a capacity tender.
There is only one call for tenders in the FCR market because the frequency deviations fluctuate around 50 hertz and the system balance needs to be restored relatively quickly. As a result, the average frequency over such periods is close to 50 hertz and the positive and negative activation volumes balance out at zero. Volumes that nevertheless arise during the 15-minute settlement period are therefore generally so small that the settlement effort is disproportionate to the benefit.
The individual bids are activated automatically depending on the frequency deviation from the set-point value.
Set-point values calculated based on the grid frequency deviation measured are presented as quarter-hour averages in the APG control area. Such averages are normally published after every full hour and are updated hourly.
Tenders for FCR in the APG control area
This page contains key information for potential FCR providers.
Please consult the following documents for more detailed and legally binding information.
Please refer to the following documents for the precise Requirements for participation for FCR, as well as the documents needed:
- Abridged FCR procedure
- Explanation of prequalification
- Technical prequalification for procurement/delivery of FCR
Tendered products
FCR is transacted on a daily basis over APG’s tendering platform. Procured with six four-hour products:
Produktname |
PRL_00_04_POS/NEG PRL_04_08_POS/NEG PRL_08_12_POS/NEG PRL_12_16_POS/NEG PRL_16_20_POS/NEG PRL_20_24_POS/NEG |
The entire FCR must be available without interruption during this period. This means that it must be continuously held by the providers at their power plants. The product contains equal volumes of positive and negative FCR. It is therefore not possible to make separate offers for positive or negative FCR.
Tendered volume
The FCR that is required to be constantly held in the APG control area for 2023 is +/- 72 MW. The FCR to be held by the TSOs participating in the collaboration can be found in the parameter file.
Minimum and maximum bids
The minimum bid is +/- 1 MW. Bids in excess of this may be submitted in whole MW increments, up to a maximum of the prequalified capacity.
A maximum bid size of +/- 25 MW applies to indivisible bids.
Tendering period
The bidding period for tenders usually starts seven days before delivery (gate opening time (GOT) 10:30 a.m.) and ends one day before delivery at 8:00 a.m. (gate closure time (GCT)).
Award procedure
After gate closure (GCT), bids are ranked by price – starting from the lowest – until the required level of aggregate balancing services has been reached. Where the same capacity price has been submitted for one or more bids, the earlier entry time stamp shall count. Once the required tender volume has been achieved, APG reserves the right to shorten the last bid to 1 MW so that the required level of balancing services is met.
Each provider shall receive the marginal price determined for the bids awarded (pay-as-cleared) and hence no less than the capacity price asked in these bids.
The algorithm takes into account the divisibility of bids.
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Divisible bids must not be rejected in the cooperation-wide optimisation if the bid price is below the marginal price (no paradoxically/unforeseeably rejected divisible bids).
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Indivisible bids will be awarded if their award leads to a better overall optimisation result and no divisible bids are skipped as a result. For example, this means that indivisible bids will be awarded if skipping them would have led to a higher marginal price and, consequently, higher overall costs. It also means that indivisible bids can be rejected if divisible bids can be awarded at the same marginal price.
If this cooperation cannot be carried out for technical reasons, the market will be split up (decoupled) so that a local tender can take place. The tendering process and the award procedure essentially work in the same way.
Unsuccessful tender
Where the volume of valid bids is smaller than the tender volume, the bid quantities that meet the award criteria will be accepted and the shortfall in capacity will be tendered again in accordance with the tender schedule, usually on the following day. This new tender will be carried out at a local level (only for Austria and not within the framework of the cooperation). The providers will be notified in good time. If the tender volume is not achieved in spite of a repeat tender, the tender for the shortfall in capacity shall be considered unsuccessful.
Frequently asked questions - FAQ
The frequency containment reserve is provided by power generating or consuming facilities and serves to restore any imbalance occurring between supply and demand in the Central European synchronous area. This process is automated and occurs within seconds through activation of the reserves (control) and stabilises the common frequency. The reserve is divided geographically across the entire synchronous area.
The FCR is activated automatically, for example through the deployment of turbine controllers in power plants. This is triggered when the frequency deviates from the set-point value (50?Hz), with activated FCR rising as the frequency deviation increases.
Maximum activation (in the case of a design basis incident) takes place if the frequency deviation is 200 mHz or more. The FCR is then exhausted. Maximum activation must be achieved within 30 seconds of the frequency deviation occurring and is required to be available for at least 30 minutes.
To stabilise the grid frequency through primary control, it must be possible to activate balancing services both upwards and downwards (higher/reduced power generation). The capacity range that can be activated for primary control purposes is called the primary control range.
Providers who commit to providing FCR have to fulfil their obligation without interruption throughout the entire delivery period. FCR power can generally only be provided in facilities whose capacity can be activated rapidly. In the case of power plants, this means that they need to be in operation (other facilities in an FCR pool can also provide this power). However, the provider is free to decide which of its prequalified facilities will provide the FCR at that moment. The important thing is to ensure that the agreed volume of power to be held and the required activation dynamic are met in the aggregate.
The provider shall inform Austrian Power Grid AG immediately by telephone and also by e-mail in the event that it is no longer able to fulfil its obligation to keep power available due to technical issues.
Where the failure is due to gross negligence or intent, Austrian Power Grid AG may claim a contractual penalty as well as damages.
In the event of repeated breaches of contractual obligations, Austrian Power Grid AG may terminate the framework agreement with the provider.
Generation units that hold FCR can carry out scheduled deliveries and also deliveries of reserves at their own discretion. However, it must be ensured that the open availability of the agreed primary control range can be demonstrated at all times. This means that, starting from the current operating point, it must be possible to increase or lower the capacity to the agreed extent and in the agreed quality at any time. It goes without saying that providers must also be able to demonstrate compliant activation.
The provider must send Austrian Power Grid AG up-to-the-minute reports on the activation status with regard to primary control for the intended power generation units. In addition, the provider must furnish Austrian Power Grid AG with time-stamped measurements of frequency, operating point and current generation levels by its pool for monitoring purposes by means of online transmission. Finally, the provider must also record and archive this data itself for the individual technical units in its pool and make it available to Austrian Power Grid AG on request.
No. Only the capacity price is settled, i.e. the price of the highest-priced awarded bid (pay-as-cleared). Since the actual grid frequency hovers around the average of 50?hertz, averaged over time the primary control power to be supplied is zero, taking both upward and downward FCR into account.
When the offer period ends, bids will be ranked by price?– starting from the lowest?– until the tendered volume of the frequency containment reserve has been reached. Each provider shall be paid the price of the highest-priced awarded bid (where the country’s import/export limits are hit) of the cooperating countries. This marginal price will be published (see Results of tenders in APG’s tendering system) and is the basis for settlement with the providers and the other TSOs. Multiplying the accepted volume of FCR by this price gives the (daily) costs that are paid in total to the providers or producers of frequency containment reserve.
Yes, all accepted individual bids of the entire cross-regional cooperation are published anonymously.
In the event that the volume of accepted offers for the FCR is smaller than the volume tendered, a second call (local and not within the scope of the cooperation) will take place for the outstanding volume (residual volume). Should the tendered (residual) volume also not be achieved in this second call, the tender for the corresponding delivery period shall be deemed unsuccessful.
If the tender is unsuccessful, suitable providers will be instructed to provide the required FCR as per the?ElWOG 2010.
Contact
Market Operations
Cross-zonal cooperation
APG procures its required primary control together with other European transmission system operators. The cooperation is based on the principle of equal rights and obligations.