Balancing capacity

Transmission System Operators (TSOs) are responsible for continuously maintaining the balance between electricity production and consumption within their control areas.

Context

Transmission System Operators (TSOs) are responsible for continuously maintaining the balance between electricity production and consumption within their control areas. To this end, they rely on various types of balancing reserves, which differ in terms of activation principles and response times. The transmission networks of Creos and Amprion operate as a common load-frequency control (‘LFC’) area. Since the Luxembourg network does not have sufficient balancing capacity, Amprion provides the required balancing reserves for this LFC area.

Types of Balancing Reserves by Activation Time:

  • Primary Reserve (Frequency Containment Reserve – FCR): activated within a few seconds.
  • Secondary Reserve (automatic Frequency Restoration Reserve – aFRR): available within less than 5 minutes.
  • Tertiary or Minute Reserve (manual Frequency Restoration Reserve – mFRR): fully activated within 5 to 15 minutes.

There is also a distinction between:

  • Positive reserve: increase in generation or reduction in consumption in response to rising demand.
  • Negative reserve: reduction in generation or increase in consumption to counteract an electricity surplus.

Illustration 1: Balance between generation and consumption
Illustration 2: Types of Balancing Reserves

Steps and principles for the participation of a Balancing Service Provider (BSP) in the FCR, aFRR and mFRR market with facilities connected in Luxembourg

For a successful participation of a Balancing Service Provider (BSP) in the FCR, aFRR and mFRR balancing energy market with technical units connected to the Luxembourg grid, the following steps are required, as well as knowledge of the general principles of the DE-LU cooperation model:

  1. Initial Contact
    The BSP (Balancing Service Provider) contacts the responsible Luxembourg distribution system operator (DSO) as well as the transmission system operator (TSO) Creos.
    (Request for the „Bestätigungserklärung des Reserven anschließenden Netzbetreiber1“)
  2. Grid Assessment by the Network Operators
    The network operators assess whether the local and national electricity grids can support the technical units at their grid connection points for the provision of the services.
  3. Approval by Creos
    As the Luxembourg transmission system operator (TSO), Creos approves the BSP’s proposal, including the proposed technical units in Luxembourg.
  4. Prequalification Request
    The BSP submits its prequalification request to Amprion2.
  5. Prequalification Process
    Amprion carries out the prequalification process in accordance with the approved German prequalification conditions (PQ conditions).
  6. Framework Agreement
    Conclusion of a framework contract for balancing energy services between the BSP and Amprion. In this context, Amprion acts as the "contractually connected transmission system operator (connected TSO)".
  7. Balancing Group Definition
    The BSP must define a balancing group within Creos’ scheduling area for each technical unit.
  8. Offer Submission
    The BSP submits its balancing energy bids via the internet platform www.regelleistung.net, which is operated by the four German transmission system operators.
  9. Forwarding to European Platforms
    The bids are automatically forwarded to the European platforms PICASSO (for aFRR) and MARI (for mFRR).
  10. Awarding and Settlement
    Amprion awards and settles the services of the BSP.
  11.  Data Transmission to Creos
    Amprion transmits the relevant data to Creos and the BSP in order to update the schedules and accurately calculate the balancing energy costs for the balancing group responsible parties.

1 Bestätigungserklärung des Anschlussnetzbetreibers
Note: The distribution system operator confirms that the grid connection, the use of the connection, as well as the technical requirements of the connection are regulated, and that there is nothing preventing the provision of balancing services.
2 Präqualifikationsportal > Start

 

Prequalification

As of January 1, 2025, facilities with a grid connection in Luxembourg can be prequalified and used for the marketing of all balancing energy products — now including secondary balancing reserve (aFRR) and minute reserve (mFRR) in Germany. Until now, since June 1, 2020, this was only possible for primary balancing reserve (FCR).

The marketing of balancing energy from facilities with a grid connection in Luxembourg is open to both existing balancing energy providers in Germany and other market participants in Luxembourg and Germany (after concluding a framework contract). To this end, the two transmission system operators, Creos and Amprion, have developed a cooperation model.

For example, in order for power plant operators or aggregators to participate as potential suppliers in the tenders for the three reserve types, they must meet several requirements. These are reviewed as part of the prequalification process by the TSO. The standardized prequalification documents are available for download at the following link: Regelleistung > Anbieter werden > Präqualifikationsverfahren. Amprion carries out the prequalification on behalf of Creos and is the framework contract partner for providers wishing to market balancing energy from facilities with a grid connection in Luxembourg.

TECHNICAL CHARACTERISTICS
FCR
AFRR
MFRR

ACTIVATION SPEED

Full activation within 30 sec.

Full activation within 5 min., first reaction after 30 sec.

Full activation within 12.5 min.

ACTIVATION

Automatically, decentralized by providers based on the grid frequency

Automatically, according to target value specifications from the TSO (?)

Manually, via MOLS

MAXIMUM ACTIVATION TIME

15 min.

60 min.

60 min.

SYMMETRICAL/ASYMMETRICAL

Symmetrical

Asymmetrical

Asymmetrical

Pooling

For the purpose of marketing and providing balancing reserves, providers can offer Reserve Units (RE), Reserve Groups (RG), and Pools composed of RE and/or RG:

For Creos and Amprion, which operate a joint Load-Frequency Control (LFC) area, the following specific rules apply:

  • For FCR (Frequency Containment Reserve), cross-border pooling of technical units from the grid area* of Creos and Amprion is permitted.
  • For aFRR (Automatic Frequency Restoration Reserve) and mFRR (Manual Frequency Restoration Reserve), only technical units that belong to the grid connection area of either Creos or Amprion may be grouped into RE, RG, and Pools. Combining or mixing units from the Creos and Amprion grid connection areas (or from another control area) is not permitted.

Dynamic pooling assignment of prequalified units between pools within the grid area* of Creos and Amprion is not allowed for aFRR and mFRR. (* Including the respective underlying distribution networks.)

For the prequalification, marketing, and delivery of such units, the provider must establish and operate a separate pool for each case (under the same or different framework contracts).

Tenders

All types of balancing reserves in the German market are tendered via Regelleistung.net. While aFRR and mFRR are tendered on a daily basis, FCR is typically auctioned weekly in four-hour blocks. The minimum bid volume and bid increment for all products is 1 MW.

Primary control reserve (FCR) is contracted exclusively based on the offered capacity price using the uniform pricing method.

With the introduction of the Regelarbeitsmarkt (RAM) (balancing energy market) in 2020, the procurement of balancing capacity and balancing energy has been separated. The introduction of RAM serves as the national foundation for the European internal market for balancing reserves and fulfills the requirement of Article 16(5) of the EB Regulation (EB-VO). RAM offers balancing service providers the opportunity to:

  • Adjust successfully awarded bids from the balancing capacity auction, and/or
  • Submit new bids (without a capacity price).

For secondary reserve (aFRR) and minute reserve (mFRR):

  • Compensation with RLM (Registering load measurement) is based on the pay-as-bid method,
  • Compensation in the balancing energy market (RAM) follows the uniform pricing method, according to the actual activations.
PRODUCT FEATURES
FCR
AFRR LEISTUNG
AFRR ARBEIT
MFRR LEISTUNG
MFRR ARBEIT

PRODUCT LENGTH

4 hours

4 hours

15 minutes

4 hours

15 minutes

CALL FOR TENDERS

daily

daily

quarter hourly

daily

quarter hourly

GATE OPEN

D-7

D-7

D-1, ca. 9 a.m.

D-7

D-1, ca. 10 a.m.

GATE CLOSURE

D-1, 8 a.m.

D-1, 9 a.m.

T-25 min.

D-1, 10 a.m.

T-25 min.

PRODUCTS

symmetrical

pos. + neg.

pos. + neg.

pos. + neg.

pos. + neg.

MINIMUM OFFER SIZE

1 MW

1 MW

1 MW

1 MW

1 MW

OFFER INCREMENT

1 MW

1 MW

1 MW

1 MW

1 MW

DIVISIBILITY

Only divisible bids

Only divisible bids

Only divisible bids

Non-divisible bids up to 25 MW permitted

Non-divisible bids up to 25 MW permitted

REMUNERATION

Pay as Cleared

Pay as Bid

Pay as Cleared

Pay as Bid

Pay as Cleared

Activation of Balancing Reserves

The activation of the procured balancing capacity differs depending on the type of the balancing services.

While the FCR is activated decentrally in the entire synchronous area on the basis of the frequency deviation in accordance with the solidarity principle, aFRR and mFRR are activated in accordance with the polluter-pays principle. This means that aFRR and mFRR is activated by the TSO who is responsible for the LFC area which causes the imbalance. aFRR is activated automatically to replace the FCR, whereas the TSOs request the use of mFRR manually.

Publication

Tender results (e.g., volumes and prices) are published on www.regelleistung.net.

FAQs

Below you will find a list of frequently asked questions.

Where can I find general information on the topic of balancing energy?

General information on the German and European balancing energy market can be found at the following link: https://www.regelleistung.net/

Whom can I contact for more information about the participation of facilities in Luxembourg in the balancing energy market?

For questions regarding the participation of Luxembourg-based facilities in the balancing energy market, Creos Luxembourg will be happy to assist you.

Please send your inquiry to: info@creos.net

Can a battery facility with 200 kVA in Luxembourg participate in the German balancing energy market?

To participate in the balancing energy market, a minimum capacity of 1 MW is required — either through a single facility or via a pool of installations.

Example: For participation in the FCR market, a Luxembourg-based facility can be pooled with units in the Amprion grid area. After successful prequalification, participation in tenders is possible.

For aFRR and mFRR, however, only facilities within the Luxembourg grid area may be pooled together.

What are the prequalification criteria?

Participating facilities must meet the currently valid German prequalification criteria.

Further information can be found here: Regelleistung > Anbieter werden > Präqualifikationsverfahren

Can I participate in the German balancing energy market as a private individual with my installation?

Participation is only possible via a Balancing Service Provider (BSP). The BSP handles the registration, marketing, and settlement of the balancing energy for your installation.

Who handles the settlement of the service?

The settlement of the balancing energy service is carried out by Amprion, the responsible contractual transmission system operator (TSO).

Can balancing service providers from Germany market technical installations in Luxembourg?

Yes, balancing service providers based in Germany can also market technical units in Luxembourg, provided they comply with regulatory and technical requirements.