With the introduction of the balancing energy market, the aFRR market will be divided into two separate stages: balancing capacity and balancing energy tendering.
Within the scope of the balancing capacity tender market participants offer pre-qualified capacities, which they must also offer on the balancing energy market, in case the bid is accepted. In addition to the capacity offered, a bid for aFRR capacity is characterized by the capacity price. The bids submitted are ranked in ascending order according to this price (merit order list for capacity). The most favorable bids for APG are finally accepted - in accordance with the published award criteria and requirements - for the capacity reserve.
The second stage of the market is formed by intraday balancing energy tenders (balancing energy market). Here, providers can adjust the energy prices already submitted in the capacity tender or offer other pre-qualified capacities, independently of the balancing capacity tender. The submitted bids are again ranked in a merit order list according to their energy price.
The individual balancing energy bids are activated automatically - again in accordance with the published criteria - by the load frequency controller of APG, specifying a capacity setpoint with the aim of balancing the control area.