What is the pass-through number specified in each tender?
If the TSO's tendered demand cannot be met, a second tender is issued. In that case, the pass number 2 would be there. As a rule, however, the first run is sufficient to cover the tender requirement.
What is meant by "performance price (PP)" and "labor price (LP)" and how are they formed?
The capacity price is the price that the supplier receives for the mere provision of balancing power, irrespective of a call. This price applies for the entire tender period for the respective product time slice.
A supplier offers 10 MW for 15 (€/MW)/h in the daily auction MRL in the product time slice POS_08_12 and is awarded a contract, so he must hold 10 MW positive mFRR on the delivery day from 08:00-12:00 and is remunerated for this with 10 MW * 15 (€/MW)/h*4h = 600 €.
The energy price is the price that a supplier receives for the energy quantities actually delivered on call.
The supplier from the above example has offered a commodity price of 70 €/MWh (grid to supplier) and receives a call of 7 MW from 10:30-11:30. For this, he then receives 7 MW * 1h * 70 €/MWh = 490 €.
In case of under-performance contrary to the contract (i.e. too little delivery), a reduction of the remuneration of the performance price would be made proportionate to the time and quantity. In case of repetition, this can be penalized and even lead to the withdrawal of the prequalification.
Both the service price and the labor price are determined by the bidder himself when submitting the bid. Pay-as-bid" applies, i.e. each bid that is awarded or called off is remunerated at its individual bid price.
Are there lower and upper limits for quantities and prices when submitting bids, awarding contracts and calling off contracts, and what rules apply to awarding contracts and calling off contracts?
The minimum bid size is 1 MW. This applies to all FCR, aFRR and mFRR products. Further information on product details can be found at regelleistung.net .
The upper limit for bidding is set by the prequalified output per supplier and product type. When submitting a bid, any unavailability of technical units (e.g. maintenance) and reserves as collateral for the failure of technical units must be taken into account.
Allocation and call-off are carried out for each product time slice until demand is met along a merit order list (MOL), which is formed by sorting the service or work prices from the cheapest to the most expensive.
For the exact auction, award and call-off rules, please refer to the respective product descriptions on our Internet platform and to the sample framework agreements including their annexes available for download there.
What is meant by the terms "supplier to network" and "network to supplier"?
The designation specifies the payment direction of the work price and is selected by the supplier himself when submitting the offer. The supplier can decide whether he wants to be paid for call-off and thus for the supply of standard work or whether he is willing to pay for call-off.
The latter can be the case in particular for the supply of negative control energy, if the supplier saves fuel when the output of a power plant is reduced (generation side) or receives energy when the output of a consumer is increased (demand side).
Is it permissible to submit bids for several product time slices per tender period and, if so, to design them differently?
A provider may offer its prequalified service completely independently of one another in each product time slice. In doing so, it can structure its offered service level differently from time slice to time slice depending on its availability as well as its service and work prices depending on its (opportunity) costs. Thus, it is possible for a provider to offer a service only temporarily in some time slices if it is not available in others or is needed/marketed elsewhere.
Likewise, service and labor prices for each time slice can be individually adjusted to the respective market situations and (opportunity) costs of the corresponding time slice.
Is it possible/allowed to offer/provide multiple product types at the same time?
If plants are prequalified for several balancing power products, the provider has the freedom to decide individually how to market the prequalified power of the plants. He can divide the capacity of his pool and also of each individual technical unit into any number of capacity slices and market these completely flexibly at different prices and in different control reserve products. However, a power slice may never be marketed twice.
2. FCR / aFRR / mFRR
In addition to the data for Germany regarding FCR, the tender overview also contains data for other countries. What do these data represent?
There is an international cooperation for the procurement of FCR, in which a growing number of countries participate. The needs of each country are to be covered in the joint, cross-border tender. However, country-specific core parts as well as export limits have to be complied with, so that a certain demand share has to be mandatorily procured in the respective country, as well as the export.
Why does the aFRR capacity awarded in some tenders exceed the TSOs' tendered requirements?
In aFRR, Germany and Austria cooperate within the framework of cross-border, cost-optimizing procurement. As a result, the German TSOs may provide secondary control power for Austria and vice versa.
The previous cooperation for the cost-optimized use of secondary control power has been transferred to PICASSO with its introduction. The aim of PICASSO is to optimize the cost of using secondary control reserve throughout Europe.