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Daily Auctions in Capacity Markets

Recently, there have been some development in the TenneT capacity markets.

Daily Auctions

As of the 1st of September the Dutch balancing products switch entirely to daily auctions! Next to FCR, also aFRR and mFRRda will move from weekly and monthly auctions to daily auctions. This means that aggregation and automation of demand response becomes even more relevant, so this is a positive development for Senfal! The Dutch regulator ACM broke the news of its decision last week. According to EU regulations TenneT should have made a switch to daily auctions for all its balancing capacity programmes by the 1st of January this year. This was postponed, but last week the ACM decided that the 1st of September is really the final date that this switch has to happen. Senfal is very excited about this development. If you want to understand what this means for your business and/or if you want to take advantage of this opportunity, don’t hesitate to reach out!

Here you can read more on the ACM decision

(De)coupling: side effects may occur!

Through the coupling of auctions, the price of primary reserve (Frequency Containment Reserve / FCR) is similar in many countries. Depending on the day, the Netherlands seems to either follow along, or have much higher prices. Are the costs for supplying FCR actually much higher on these days, or is there something else in play?

Because of the amount of available FCR, smart bidding can still really make a large difference in the price. Price formation in the energy grid is not only a matter of marginal prices & availability, but also how trades and operators choose their bidding strategy.