Procurement and pricing of ancillary services
Overview of how different ancillary services are procured and priced as well as data on market outcome such as procured volumes and corresponding prices.
Procurement and pricing of reserves
Updated May 2nd, 2024
(.pdf) Gate closure for different reserves is presented in Figure 1. The reserves FCR-N, FCR-D upward and FCR-D downward are procured during two complementary auctions one day (D-1) ahead. The majority of the capacity for FCR is procured in the first auction, the rest is procured in the second auction. The reserve aFRR is procured D-1.
The procurement of mFRR takes place on the capacity market and on the energy market. Capacity from the capacity market is procured during one day (D-1) ahead. Energy bids for mFRR are cleared during the operating hour if needed. Bids for mFRR shall be submitted no later than 45 minutes before the operating hour. A called bid on the capacity market implies a commitment to submit a bid on the energy market. The reserve FFR, which is not included in Figure 1, is procured on a yearly basis. FFR is cleared two times per week (Monday and Friday).
(.pdf) Figure 1. Procurement and pricing of reserves. The reserve FFR is not included in the figure as it is procured on a yearly basis.
More detailed information on the requirements is available in Swedish in the balance responsibility agreement and associated regulatory documents. They are available for download in Swedish.
Procurement and pricing of reserves (document) (.pdf) Opens in a new window
Your possible earnings depend on the capacity and/or energy you have available to bid as well as the price you choose for your bid.
You can get an indication of how much you can earn on each market by looking at historical prices for cleared volumes. Historical prices can also be used to get an indication on how to price your bids. Remember that the pricing of your bid should cover any eventual investment cost, operational cost as well as desired return on investment.
Capacity remuneration = Price (Pay as cleared or Pay as bid) * sold capacity (MW)
Energy remuneration = Price (upward or downward regulation) * activated energy (MWh)
Capacity market
A market where capacity is procured. Bids are cleared usually one day before the day of operation. The capacity remuneration is always received for accepted bids, independent of any energy activation. Some capacity markets also include energy remuneration for the actual energy activations.
Energy activation market
A market where energy is procured. Bids are cleared during the operating hour. Energy remuneration is received for the actual energy activations. No capacity remuneration is received.
Cleared volumes and prices for ancillary services
| Ancillary service | Cleared capacity | Activated energy |
|---|---|---|
| FFR | Cleared volumes and prices are published on the page Demand for FFR (in Swedish). | Activated energy for FFR is not published or remunerated. |
| FCR | Cleared volumes and prices for FCR capacity are published on Svenska kraftnät’s support system Mimer (in Swedish). |
Activated energy for FCR-N is published on ENTSO-E’s Transparency Platform. Activated energy for FCR-N is remunerated according to up or down regulating prices published on Svenska kraftnät’s support system Mimer (in Swedish) and on eSett’s webpage. Activated energy for FCR-D is not published or remunerated. |
| aFRR | Cleared volumes and prices for aFRR capacity are published on Svenska kraftnät’s support system Mimer (in Swedish). |
Activated energy for aFRR is published on ENTSO-E’s Transparency Platform. Activated energy for aFRR is remunerated according to up or down regulating prices published on Svenska kraftnät’s support system Mimer (in Swedish) and on eSett’s webpage. |
| mFRR | Cleared volumes and prices for mFRR capacity are published on NUCS. |
Cleared volumes and prices for mFRR energy are published on Svenska kraftnät’s support system Mimer (in Swedish) and on eSett’s webpage. |