Tender and bidding process

Balancing capacity (FCR)

For Frequency Containment Reserve (FCR), there are daily tenders for balancing capacity, which can be bid on until 8 AM the day before. The product length for FCR is four hours, starting with the time slice from midnight to 4 AM and ending with the time slice from 8 PM to midnight. Thus, six time slices can be bid on each day. Unlike aFRR and mFRR, FCR is a symmetric product. This means providers must be able to deliver both positive and negative FCR. Additionally, remuneration is according to the pay-as-cleared principle, meaning all providers receive the highest awarded price.

Balancing capacity (aFRR and mFRR)

First, the tender for balancing capacity takes place the day before on the balancing powercapacity market (RLMBCM). The market for automatic Frequency Restoration Reserve (aFRR) closes at 9 AM and the market for manual Frequency Restoration Reserve (mFRR) closes at 10 AM. The RLMBCM ensures that sufficient power is offered in the following auctions for the procurement of balancing energy on the balancing energy market (RAMBEM) to meet the demand

Each provider awarded on the BCM is obligated to offer balancing energy bids in the amount of their awarded balancing capacity. Furthermore, the tender result of the BCM serves as a backup in case the BEM fails. 

Each bid awarded on the BCM is remunerated with the offered balancing capacity price. An energy price can, but does not have to be, specified on the BCM. This price is then carried over by the TSO to the BEM, so no additional active participation in the BEM would be necessary. However, the voluntarily submitted energy price can be adjusted up to the gate closure for each quarter-hour. While the product length for the BCM is four hours, in the BEM bids can be placed for each quarter-hour of a day individually

Balancing energy (aFRR and mFRR)

After the BCM concludes, the balancing energy market (BEM) opens for the current delivery day. All quarter-hours of the delivery day are procured individually on the BEM. For each quarter-hour, the BEM closes 25 minutes before the start of the delivery quarter-hour. All offered balancing energy bids are awarded on the BEM, regardless of whether they were mandatory due to an award on the BCM or voluntary. 

This allows for additional flexibility or participation in the BEM for power not awarded the previous day. A capacity price is only paid to bids awarded on the BCM. All submitted balancing energy bids are transferred to a merit order list and called off in ascending order based on the energy price. The activated balancing energy is settled according to the marginal price procedure. The marginal prices are determined by the platforms, MARI for mFRR and PICASSO for aFRR.

A legal classification of the procurement can be found in the modalities for balancing service provider.