To the content
PageHeaderDefaultBackground.svg

Tertiary Control - Manual Frequency Restoration Reserves (mFRR)

The mFRR market comprises of two steps of tenders: the capacity tender and the energy tender. 

In capacity tenders, market participants offer prequalified capacity for power provision which they are then also required to offer in the balancing energy market if their bid is selected. Besides the capacity offered, a bid for manual frequency restoration reserves (mFRR) is characterised by the capacity price. Based on this price, the bids submitted are ranked in ascending order (merit order list (MOL) for capacity). The most advantageous bids for APG are ultimately awarded – in accordance with the published award criteria and requirements – for power provision. 

The second phase of the market is intraday energy tenders (balancing energy market). Here, providers can adjust the energy prices submitted in the capacity tender or offer other prequalified capacities independently of the capacity tender.  

If it becomes necessary to activate mFRR in the APG control area, the most advantageous offers available to cover these requirements will be activated by APG for a minimum delivery time of 5 minutes by means of an automated optimization and web-based activation tool (AutoMOT).

Tenders for mFRR in the APG control area

More detailed and legally binding information as well as the documents required for participation in the tertiary control reserve tenders can be found under Downloads.

Capacity tender

The required mFRR is put out to tender in Austria on a calendar-day basis (from Monday to Sunday). The most important times in the tender are summarised in the table below: 

Event Description Time

Gate Open Time 

Gate open of all mFRR tenders for delivery day D 

D-7 10:00 

Gate Closure Time 

Gate closure of the mFRR tender for delivery day D  

D-1 10:00 

The following chart shows the sequence for a delivery day: 

Should it be necessary in an exceptional case to postpone or change the times shown, market participants will be notified in a timely manner. 

Tendered quantity 

The mFRR balancing capacity required in the APG control area which is procured in daily tenders amounts to +280 MW (positive TRR) and -195 MW (negative TRR) until the 12th of Aug. 2024; and will be reduced to +255/-170 MW as of delivery day 13th of Aug. 2024. The dimensioning of the mFRR balancing capacity to be tendered can be changed by the control area manager if necessary.

Tendered products

The tertiary control reserve is procured daily in six 4-hour products (delivery and procurement) via APG's RRAP tender platform:

Product name
TRL_00_04_POS TRL_00_04_NEG
TRL_04_08_POS TRL_04_08_NEG
TRL_08_12_POS TRL_08_12_NEG
TRL_12_16_POS TRL_12_16_NEG
TRL_16_20_POS TRL_16_20_NEG
TRL_20_24_POS TRL_20_24_NEG

 

Minimum and maximum bid

The minimum bid size for bids by a bidder per product is 1 MW. Bids in excess of this may be submitted in whole 1 MW increments, up to a maximum of the pre-qualified capacity.

Award procedure

After the offer period of the capacity tender has ended, the offers will be ranked based on the following criteria and awarded: 

  • lowest capacity price; and 
  • where identical capacity prices have been submitted the allocation of bids will be determined by reproducible chance.  
  • Market participants whose bids have been selected will receive the capacity price submitted for their bid, i.e. settlement follows the pay-as-bid principle. Providers are required to also state energy prices in their capacity bids. The energy prices submitted in the capacity tender will be used for the energy tender and can be modified (upwards or downwards) up until the end of the offer period of the energy tender.

Unsuccessful tender

If a daily capacity tender is unsuccessful because the required volume is not reached, for example, the valid bids will be accepted and a second call will be issued for the shortfall. 

If there are still shortfalls after a further invitation to tender, a last call will take place. In this case, APG asks the providers to offer any available capacity by e-mail, and/or by telephone.

Energy tender

The tertiary control power required is put out to tender in Austria on an intraday basis (from Monday to Sunday). Bids can be submitted and modified from the publication of the results of the capacity tender up until 25 minutes before the delivery period of the product time slice. The most important times in the tender are summarised in the table below:

 

Event Description Time
Notification of the results of the mFRR tender = gate open time

Gate open for all mFRR tenders for delivery day D and product P

After D-1 10:30 a.m.

Gate Closure Time

Gate closure time of the mFRR tender per product time slice with start T and product P

T-25 mins

Publication of the results of the tender  

Latest time for announcement of the results of the mFRR tender for delivery day D 

T-10 mins 

Tendered products

Tertiary control energy is added in a product resolution of 15 minutes:

Product name
TRE_0000_0015_POS TRE_0000_0015_NEG
TRE_0015_0030_POS TRE_0015_0030_NEG
TRE_0030_0045_POS TRE_0030_0045_NEG
TRE_0045_0100_POS TRE_0045_0100_NEG
TRE_0100_0115_POS TRE_0100_0115_NEG
... ...
TRE_2345_0000_POS TRL_2345_0000_NEG

 

 

Minimum and maximum bid

The minimum bid size for bids by a bidder per product is 1MW. Bids in excess of this may be submitted in whole 1 MW increments, up to a maximum of the prequalified capacity.

Award procedure 

After the offer period of the energy tender has ended, the bids will be ranked based on the following criteria and awarded (see Downloads).

Procedure in the case of disruption 

If the energy tendering process cannot be completed in full for technical reasons, all entries made up to that point lose their validity. Substitute energy prices will be calculated for preparing the merit order list. 

The substitute energy prices for delivery day D will be calculated for each provider and for each product time slice based on the energy bids submitted by the provider for the past 14 delivery days preceding the gate closure time of the capacity tender (D-1).

The exact calculation steps are defined in the modalities for control reserve providers (see Downloads).

Frequently asked questions - FAQ

What are manual frequency restoration reserves?

When major imbalances occur in the control area, manual frequency restoration reserves (mFRR) are activated to supplement or to ease the burden on the automatic frequency restoration reserves (aFRR). 

What is the tertiary control range?

The capacity range reserved or held for tertiary control purposes is called the tertiary control range. 

What happens if a provider is unable to fulfil a commitment to provide mFRR due to technical issues?

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.

In principle, the provider has a duty to compensate for such failures within the scope of its pooling concept. General speaking, based on the monitoring of the activation, a penalty shall be charged for reserves that have not been held/activated. In the event of repeated breaches of contractual obligations, Austrian Power Grid AG may temporarily suspend admission to the tender or, as a last resort, terminate the framework agreement with the provider.

More details on this can be found in modalities for control reserve providers (Downloads).

Can a power plant be used for tertiary control and for other purposes at the same time?

Scheduled operations and other activations of control power are also permissible with technical units (TUs) that hold mFRR. However, it must be ensured that the availability of the agreed tertiary control range can also 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. The obligation to provide the reserves to be made available thus applies additively. 

How is the quality of the tertiary control checked?

The provider must furnish Austrian Power Grid AG with time-stamped measurements of its pool for monitoring purposes by means of online transmission.

Finally, the provider must also record and archive this data itself for all individual technical units in its pool and make it subsequently available to Austrian Power Grid AG on request.

Please refer to prequalification documents for tertiary control for more information. 

Will the individual bids submitted in a tender be published?

The anonymized list of bidders for the tenders is published on the tender platform.

What happens if there are insufficient offers to provide all of the mFRR needed?

In the event that the volume of accepted offers for the mFRR is smaller than the volume tendered, a second call will initially take place on the next day for the outstanding volume (residual volume).

If there are still shortfalls after a further invitation to tender, a last call will take place. In this case, APG asks the providers to offer any available capacity by e-mail and/or by telephone.

Contact

placeholder_division.png

Market Operations

To the main navigation