The aFRR-market can be separated in two steps: first, during the procurement of aFRR market participants may offer pre-qualified capacities, which they have to keep available for later activation when their bids have been selected. Each bid for aFRR capacity consists of the amount of balancing capacity offered as well as of a capacity price. For the final aFRR capacity auction the prices of submitted capacity bids are sorted in ascending order (Merit Order List for Capacity) and selected according to award criteria and demands which are published on APG’s website.
The second step of the aFRR market concerns the actual activation. For this, corresponding aFRR energy prices for each selected aFRR capacity bid are again sorted to yield a Merit Order List for Energy. APG’s load frequency controller automatically activates each aFRR bid - again according to published criteria - by forwarding the required activation (setpoint) to the market participants, with the final goal to reduce the area control error within the load frequency control area.