Information on the minute reserve cooperation between Germany/Austria

Joint use of mFRR in Germany and Austria

8/1/2019

Background to the cooperation

The German transmission system operators (TSO) — 50Hertz, Amprion, TenneT and TransnetBW — as well as the Austrian TSO APG already collectively optimise the activation of the automatic Frequency Restoration Reserve (aFRR) and are also part of the international network group (IGCC). With the IGCC, opposing activation for aFRR is avoided by both countries carrying out needs balancing (“netting”).

In the next phase, the German and Austrian TSOs will further deepen their cooperation by jointly optimising activations for the minute reserve (mFRR - manual Frequency Restoration Reserve) based on a joint bid list (Common Merit Order List, CMOL). As a result, the more economical mFRR can be used in both countries so long as there are no operational network restrictions on the shared border to prevent it. This reduces the costs for control processes. Furthermore, Germany and Austria are playing a leading role in Europe through the joint activation whereby the experience gained can be applied to the European implementation project for mFRR, called MARI.

The start of the joint activation is planned for the bidding on 2nd of Sept. 2019 (with a delivery date on 3rd Sept. 2019).

Harmonisation of products and market controls

The mFRR product and the mFRR bidding rules in Austria and Germany are already harmonised for the most part.

There are still differences in the “full activation time”, which stands at 12.5 minutes in Austria and 15 minutes in Germany. The penalisation regulations remain part of national regulations for control reserve suppliers.

In Germany and Austria, there will be no changes to the product and the bidding rules that go beyond the changes scheduled in current consultations in order to allow for joint activation.

Joint activation and netting

The mFRR offers, with national overhead applied, are merged in the joint CMOL and ordered by ascending commodity price accordingly. If the price is the same, the service price and the time stamp of the incoming bid as downstream criteria are taken into consideration in addition.

The mFRR activation has the aim of optimising joint economics whilst taking into consideration the operational or operative limitations on the German-Austrian border.

Publication

With the start of cooperation, as already done in Germany, within one hour of the close of bidding, the results are published on the respective bidding systems [www.regelleistung.net in Germany and the Tendering and Trading System of APG (www.apg.at/emwebapgrem) in Austria].

The publication shall include all bids with overhead applied with the respective supply and commodity price. Also to be published downstream, amongst others: the nationally activated mFRR, the netting amounts used between Austria and Germany at the time and the mFRR amounts activated for one another that have been exchanged across the border.

Billing

The billing between the TSOs and the mFRR providers will remain the same in both countries.

Since the aim of this cooperation is to minimise the costs of deploying mFRR by using an activation from a joint mFRR MOL, it may be that one country, e.g. Austria, activates mFRR for the other country, e.g. Germany, because of cheaper mFRR offers being available. In order to arrange the costs of the mFRR activation made for each country, billing will be required between the TSOs. This is set out so that the country importing the mFRR will pay the exporting country. The payment corresponds to the costs for the activation of the bids, which were exclusively activated for export. These are bids with the highest price from all activated bids in the exporting country.

If, within a quarter of an hour, no mFRR transfers are made between the countries due to the price situation or operational restrictions, no billing will occur between the TSOs.

In the case of netting with an opposing activation for mFRR in both countries, the price for the exchange of energy will be zero.