Nordic aFRR capacity market – Disallowing balance service providers to transfer their obligations to provide aFRR capacity

Overview

The Nordic TSOs (Svenska kraftnät, Statnett, Fingrid and Energinet) are seeking to develop a common Nordic aFRR capacity market. As part of this process, they have submitted specific proposals to the relevant Nordic National Regulatory Authorities. More information on these proposals can be found here. These proposals were previously consulted on here.

The current proposals include a request for an exemption (under Article 34 of the Electricity Balancing Guideline) that would effectively disallow balancing service providers (BSPs) to transfer their obligations to provide FRR capacity as part of the new aFRR market design. The proposed legal text sent to the National Regulatory Authorities is linked below.

An explanatory document that provides useful context on these proposals is also provided below.

Why your views matter

The Nordic TSOs will, in the period to mid-December, be working to develop finalised proposals for the Nordic aFRR capacity market. We would like to receive stakeholder input on the impact of the proposed exemption so that we can take informed decisions on the final proposal and, in particular, on the request to disallow BSPs to transfer their obligations to provide aFRR capacity.

What happens next

The Nordic National Regulatory Authorities recently sent their Request for Amendment to the Nordic aFFR market proposal submitted to them by the Nordic TSOs in April.

The Nordic TSOs will launch this consultation to inform the development of revised proposals related to Article 34 of EB GL in response to the Request for Amendment.

An amended set of proposals will be submitted to the Nordic National Regulatory Authorities in December.