Questions and Answers on Reserves

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1 Questions and Answers on Reserves 1 General Questions 3. A: What factors determine the lead time for the application process of provision of reserves? Q: The maximum lead time for the application process is regulated in Commission Regulation (EU) 2017/1485, article 155 and article Q: Where can I find general information about the reserves FCR-N, FCR-D, afrr and mfrr? A: See the document Reserve Markets found on this page: 2. Q: Where can I find information about trade and pricing concerning the reserves FCR-N, FCR-D, afrr and mfrr? A: See the document Trade and Pricing found on this page: 4. A: How is the prequalification of resources performed? Q: Information about the prequalification process and the tests required is given in the prequalification documents concerning the reserves in question, these documents are found on this page: 1

2 5. Q: Is it required that a company is a Balance Responsible Party in order to submit a bid to Svenska kraftnät? A: Yes, this is currently the case. A new role as Balance Service Provider (BSP), will be introduced at the turn of the year 2019/2020, at the earliest. The balance services provider will subsequently be responsible for submitting bids to Svenska kraftnät. 6. Q: Must resources aggregated into one bid be located in the same bidding area? A: Yes. 7. Q: Where can I find the definitions of the concepts used? A: The definitions of many of the concepts used are given in Balansansvarsavtalet (the Balance Responsibility Agreement), Bilaga 1 (Appendix 1), Definitioner (Definitions): svarsavtal/ Note! Currently, the Balance Responsible Agreement and included appendices are only available in Swedish. 8. Q: What are the means of settlement? A: Svenska kraftnät has commissioned esett Oy the task of managing certain settlements, billing and payments. The Imbalance Settlement Agreement is found on this page: Additional information is also found in Svenska kraftnät s Balansansvarsavtalet. 2

3 9. Q: What are the regulations in force regarding billing of ancillary services? A: See the document Regler för fakturering av Systemtjänster : Note! This document is currently only available in Swedish. 3

4 2 FCR 1. Q: Where can I find information about the regulations on FCR? A: The information is given in Balansansvarsavtalet (the Balance Responsible Agreement), Bilaga 3 (Appendix 3), and associated regulatory documents. Note! Currently, the Balance Responsible Agreement and included appendices are only available in Swedish. 2. Q: What is the minimum bid size of FCR? A: 0.1 MW 3. Q: Is there a limit on the maximum bid size of FCR bids? A: The volume of FCR that may be provided per unit is limited to a maximum of 30 MW for FCR-N and 60 MW for FCR-D (equivalent to 5 percent of the FCR requirement in force within the Nordic synchronous area, in accordance with article in the Commission Regulation (EU) 2017/1485). As from version of Balansansvarsavtalet (the Balance Responsibility Agreement), only a certain part of the total volume of the units or groups prequalified by Svenska kraftnät may be composed of: 1. FCR with central control and/or 2. FCR with step wise control This part is limited to a maximum of 20 MW for FCR-N and 40 MW for FCR-D. If prequalification of FCR with central control and/or FCR with step wise control is performed for a larger volume, distribution of the approved units or groups will take place proportionate to each balance responsible party. 4

5 4. Q: Is there a limit regarding how much FCR bids may be increased in size when the requirement on minimum bid volume has been met? A: FCR bids shall be increased in steps of at least 0.1 MW 5. Q: Why is consumption and production divided into separate portfolios? A: In order to obtain a correct imbalance settlement. 6. Q: What is the mean frequency? A: The nominal frequency is Hz. This entails that the average power utilized for FCR-N is zero over time. However, there may be hours with a certain dominant direction (upward or downward regulation). 7. Q: In what way is compensation paid for activated energy volume of FCR-N? A: Information about the setting of prices for activated energy volume of FCR-N and of regulating power and ancillary services is given in the Balance Responsibility Agreement, Appendix Q: What does the formulation below entail, stated in Balansansvarsavtalet (the Balance Responsibility Agreement), Bilaga 6 (Appendix 6): FCR-N som sammanlagt under timmen har utnyttjats för uppreglering prissätts med uppregleringspriset. FCR-N som sammanlagt under timmen har reglerat ned prissätts med nedregleringspriset. Translation of Quote: The price for FCR-N which in total during the hour has been utilized for upward regulation, is set by the use of the price for upward regulation. The price for FCR-N which in total during the hour has 5

6 been utilized for downward regulation, is set by the use of the price for downward regulation. A: The compensation for energy is calculated on the basis of the mean frequency per given quarter and is paid for the net energy. For instance: 30 MW of the energy provided consisted of upward regulation, and 70 MW consisted of downward regulation, which results in a net energy of -40 MW (30 70 MW). 9. Q: Is compensation paid per MW for the available capacity of FCR subordered by Svenska kraftnät, irrespective of whether or not the reserve is activated? A: Yes. 10. Q: For how long shall the unit or group be able to deliver the reserve (endurance)? A: This is regulated in the Commission Regulation (EU) 2017/1485, article 156. See also Balansansvarsavtalet (the Balance Responsibility Agreement), Bilaga 3 (Appendix 3). Note! Currently, the Balance Responsible Agreement and included appendices are only available in Swedish. 11. Q: Is real-time measurement performed by the use of sub-metering permitted? A: Yes, provided that the accuracy of the measurement meets the requirements set by Svenska kraftnät. 6

7 12. Q: What does linear respectively step wise control of FCR mean? A: Figure 1 gives an example of step-wise control of FCR-N. Figure 1. FCR-N with step-wise activation (step-wise control) Figure 2 gives an example of linear control of FCR-N. Figure 2. FCR-N with linear activation (linear control) 7

8 13. Q: What does FCR with central control refer to? A: FCR with central control refers to unit or group that provides FCR controlled by frequency feedback through a central function. This may be compared to FCR with local control, controlled by frequency feedback through a local function. Example of FCR with central control: Figure 3. Example of central control of electricity consumption in households. 8

9 3 afrr 1. Q: Where can I find information about the regulations on afrr? A: The information is given in Balansansvarsavtalet (the Balance Responsibility Agreement), Bilaga 4 (Appendix 4). Note! Currently, the Balance Responsible Agreement and included appendices are only available in Swedish 2. Q: What is the minimum bid size of afrr? A: 5 MW. 3. Q: Is there a limit for maximum bid size of afrr bids? A: No. 4. Q: Is there a limit regarding how much afrr bids may be increased in size when the requirement on minimum bid volume has been met? A: afrr bids shall be increased in steps of at least 5 MW. 9

10 4 mfrr 1. Q: Where can I find information about the regulations on mfrr? A: The information is given in Balansansvarsavtalet (the Balance Responsibility Agreement), Bilaga 5 (Appendix 5). Note! Currently, the Balance Responsible Agreement and included appendices are only available in Swedish 2. Q: Do mfrr, Reglerkraftmarknaden (RKM) and the Regulating Power Market (RPM) refer to the same thing? A: Yes. 3. Q: What is the minimum bid size of mfrr? A: The minimum volume of bids in bidding zone 1, 2 and 3 is 10 MW. The minimum volume of bids in bidding zone 4 is 5 MW. 4. Q: Is there a limit for maximum bid size of mfrr bids? A: No. 5. Q: Is there a limit regarding how much mfrr bids may be increased in size when the requirement on minimum bid volume has been met? A: mfrr bids shall be increased in steps of at least 1 MW. 6. Q: For how long may mfrr bids be altered/updated? A: mfrr bids may be altered up until 45 minutes ahead of the time of delivery, after which they are financially binding. 10

11 5 Ediel Messages 1. Q: What is Ediel? A: Ediel is an electronic communication system developed for the exchange of for instance planning and settlement information between companies within the power industry in the Nordic countries. 2. Q: How are Ediel messages sent? A: The process of sending Ediel messages is described in the general user manual: Note! This document is only available in Swedish currently. 3. Q: Where can I find Ediel instructions, example given regarding DEL- FOR or QUOTES? A: All Ediel instructions are found on this page: Note! Currently the majority of the Ediel instructions are only available in Swedish. 4. Q: Who should I contact regarding further questions on Ediel messages or test of Ediel messages? A: Contact information regarding further questions on Ediel: ediel@svk.se. 11

12 6 Reporting of Real-Time Measurements 1. Q: What are the requirements set by Svenska kraftnät on the reporting of real-time measurements of reserves? A: See Balansansvarsavtalet (the Balance Responsibility Agreement), Bilaga 2 (Appendix 2), and Bilaga 5 (Appendix 5) regarding mfrr. Note! Currently, the Balance Responsible Agreement and included appendices are only available in Swedish 2. Q: What protocols/standards does Svenska kraftnät support for reporting of real-time measurements? A: Currently, ICCP and ELCOM. 3. Q: Who should I contact regarding questions on the set-up of real-time measurement? A: Contact information regarding questions on the set-up of real-time measurement: realtidsmatvarden@svk.se. 4. Q: Shall the instantaneous value (the latest indicated value) be reported to Svenska kraftnät? A: Yes. 12