Public consultation on the Proposal for Amendment to the T&C BSP aFRR

The Proposal for Amendment to the T&C BSP aFRR consists of:

• Amendments relative to the connection to the aFRR Platform (PICASSO);
• Amendments relative to the reduction of the full activation time (FAT) from 7,5 minutes to 5 minutes;
• Amendments relative to moving the aFRR capacity auction from D-2 to D-1;
• Amendments relative to the method for activating aFRR energy bids;
• Amendments relative to the possibility to use a real-time baseline;
• Amendments relative to the participation of low-voltage delivery points;
• Amendments relative to enabling a future application of Transfer of Energy for the aFRR market segment;
• A number of other smaller amendments.

Context

Currently, the aFRR service is organized locally. In accordance with Article 21 of the Regulation 2017/2195 establishing a guideline on electricity balancing (EBGL), all European TSOs must develop a European platform for the exchange of aFRR balancing energy. The connection of Elia to the aFRR Platform requires certain amendments. Specifically, the remuneration of aFRR balancing energy needs to evolve from paid-as-bid to paid-as-cleared in line with European regulation. In addition, the general bid price limits of +1000€/MWh and -1000€/MWh applicable for all upward/downward aFRR balancing energy bids will be removed. However, to mitigate the identified risk of drastic cost increases following the adoption of marginal pricing and the relaxation of the general bid price limit for aFRR energy bids, additional mitigation measures are required and have been extensively discussed with the stakeholders. Specifically, Elia proposes an effective mitigation of the risk via the combination of an introduction of temporary bid price limits for contracted aFRR energy bids and the application of an elastic demand for aFRR balancing energy. It must be noted that the application of an elastic demand for aFRR balancing energy is not part of the current proposal for amendment to the T&C BSP aFRR, but will be part of a following proposal for amendment to the Balancing Rules.

Next to the amendments relative to the connection to the aFRR Platform, this proposal for amendment to the T&C BSP aFRR also contains:

• Amendments relative to the reduction of the full activation time from 7,5 minutes to 5 minutes. These amendments are made in the context of the harmonization of the full activation time as required by the Implementation Framework for aFRR;
• Amendments relative to moving the aFRR capacity auction to D-1. Currently, the capacity auctions take place in D-2 to avoid negative impacts on the FCR auctions. However, given the developments in the FCR markets, the fact that performing the aFRR capacity auctions in D-1 allows BSPs to better forecast their available volume and the fact that performing the aFRR capacity auctions in D-1 forms a prerequisite to enable the dynamic dimensioning of aFRR, it is proposed to move the aFRR capacity auctions to D-1;
• Amendments relative to the aFRR activation method in line with the study on the aFRR activation method performed by Elia in 2022, which recommended maintaining a control request approach while at the same time giving the option to BSPs to specify a ramping period shorter than the default full activation time ;
• Amendments relative to the possibility to use a real-time baseline in line with the recommendations of the study on baseline methodologies performed by Elia in 2021, which concluded that for certain assets (e.g., certain wind parks), it might not be feasible to submit a sufficiently accurate baseline one minute in advance. To overcome this potential barrier for participation, the study recommended to give the possibility to BSPs, under certain conditions and for specific Delivery Points, to calculate and submit the baseline in real-time instead of one minute in advance;
• Amendments relative to the participation of low-voltage Delivery Points in the context of the ongoing opening of the aFRR market segment to Delivery Points connected at low-voltage level. Considering this opening and the resulting possibly very high number of individual low-voltage Delivery Points that could participate to the aFRR Service in the future, the proposal for amendment aims to facilitate the operational bidding process for BSPs and to reduce the impact on the involved IT tools;
• Amendments relative to enabling a future application of Transfer of Energy for the aFRR market segment. Currently, no Transfer of Energy framework, is implemented for aFRR. With this proposal for amendment, Elia anticipates the future application of Transfer of Energy (with financial compensation based on correction of the metering or with financial compensation between the Supplier and the BSP) for the aFRR market segment from the moment the ToE Rules would be adapted in this sense. 
  
  

A more extensive overview of the amendments and the context in which the amendments are proposed can be found in the explanatory note available on this website.

Period

Elia invites all stakeholders to submit any comments and suggestions they may have on the documents submitted for consultation. 

The consultation period runs from 28 February 2024 to 29 March 2024.

After the consultation period, Elia will analyze and integrate in a consultation report the collected reactions from the market parties as well as Elia’s responses to them. Elia will publish on its website this consultation report together with the reactions of the market parties (including names) that are not explicitly indicated as confidential.