Tenders for Frequency Containment Reserve in the APG Control Area

This page contains the most important information for potential suppliers of frequency containment reserve. More precise and legally binding information can be found in the contract documentation in the Download column.

Participation conditions

See Conditions for participation in tenders for control energy.

The documents required for participation in tenders for FCR can be found in the Download column on the right-hand side.

Tendered products

The tendering period (the period in which the FCR should be provided) is procured daily in six 4-hour products:

PRL_00_04

PRL_04_08

PRL_08_12

PRL_12_16

PRL_16_20

PRL_20_24


The total volume of FCR must be available in this period without interruption. This means that it must also be continuously reserved by the suppliers in their power plants.

The product contains equal amounts of negative and positive FCR. Separate offers for positive or negative FCR power are therefore not possible.

Volume put out to tender

The following volumes of FCR must be permanently available in the APG control area: +/-68 MW in the year 2020.

The partner TSOs' demand can be found in the Parameter file.

Minimum and maximum bid

The minimum bid is +/-1 MW. Bids in excess of the minimum bid can be placed in full MW increments but must not, however, exceed the pre-qualified power.

For indivisible bids, the maximum bid size is +/- 25 MW.

Tendering platform

The tender takes place exclusively via the electronic tendering platform.

When do the tenders take place?

The bidding period for the provision of FCR usually starts 14 days previous to delivery day (11:00) and usually ends 1 working day before the delivery day at 08:00 (GCT).  

Award procedure

At the end of the bidding period the bids are ranked by price – starting with the cheapest bids – until the total volume of control power required is reached. These bids are accepted, though acceptance of the last (= most expensive) bid may be restricted to ensure that the tender quantity is not exceeded.

Suppliers whose offers are accepted receive the marginal price and therefore at least the power price they quoted, i.e. a "pay as cleared" approach is adopted. There is no work price, i.e. the supplier is not paid for the FCR they deliver and the supplier does not have to pay for the FCR they receive. As the actual grid frequency hovers around an average value of 50 Hz, the FCR (delivered minus received) averages out at zero.

FCR is procured in a common FCR Cooperation. In case the common clearing of the Cooperation is not technically feasible, the cooperation region is decoupled and a local auction will be carried out by APG. Placing the bids and the auction algorithm follow the same processes and principles.

The allocation algorithm takes into account divisibility of the bids. Divisible bids with a bid price below the marginal must not be rejected (no paradoxically/unforseeably rejected divisible bids). Indivisible bids are accepted if the acceptance reduces the overall procurement cost and does not lead to paradoxically rejected divisible bids For example, indivisibe bids can be awarded if their rejection would have caused a higher marginal price and therefore higher total procurement costs, or, indivisible bids can be rejected if divisible bids at the same price can be awarded.

Calling FCR

FCR is – starting from the respective operating point – activated automatically through the utilisation of turbine control units in power plants. Activation is triggered when the frequency deviates from the target value (50 Hz); the activated FCR increases in proportion to the magnitude of the deviation.

Maximum activation (corresponds to design-basis fault) takes place in the event of a frequency deviation of 200 mHz or more – the FCR offered is then fully exhausted. Maximum activation must be reached, at the latest, 30 seconds after the corresponding frequency deviation occurs. It must remain available for at least 30 minutes.

Unsuccessful tender

In the event that the number of valid bids is lower than the tender quantity, the bids that meet the award criteria will be accepted and the shortfall will once again be put out to tender. The suppliers will be informed about this new tender in due time. If the tender quantity is not reached in spite of the tender being repeated, the tender for the shortfall is deemed to be unsuccessful.