Announcement: slovenia and west denmark are joining the common procurement in the fcr cooperation

ELES has been a new member of the FCR Cooperation since July this year and will join the common procurement from January 2021.

The FCR Cooperation is a cooperation for the joint procurement of FCR capacities between 50Hertz, Amprion, APG, Elia, RTE, Swissgrid, TenneT The Netherlands, TenneT Germany and TransnetBW.

Energinet has been a member of the FCR Cooperation for some years, but due to difficulties on the management of the border flows between West Denmark and Germany, Energinet has not been part of the procurement yet.

TenneT and Energinet have now reached an agreement regarding the exchange of FCR on the West Danish-German border and Energinet will now be able to participate of the procurement from January 2021. The participation of West Denmark is still dependent on approval of the Danish Utility Regulator.

The 2021 FCR demand of Energinet in West Denmark is 20 MW and for ELES 15 MW. ELES will procure its entire demand within the FCR Cooperation and will also be able to export up to 100 MW to other FCR Cooperation members. Due to IT limitations Energinet will initially have an export limit of 6 MW. At the same time Energinet will also have a core share of 6 MW which has to be procured locally in West Denmark. This IT limitation is expected to be solved and stakeholders will be informed about this development in due time. It is planned that after this, the demand, core share, and export limit of all TSOs in the German-Danish-Luxembourgish LFC Block will be pooled with an internal limit of 20 MW between Denmark and Germany.

It is expected that the accession of ELES and Energinet will lead to further socio-economic benefits for the FCR Cooperation countries and contributes to continue to lower costs for procurement of FCR with significant socio-economic benefits for the participating countries.

Moreover, the demand of each country towards the regional FCR market for the year 2021 is given in the table below:

TABELLE

Table 1: The core share is defined as 30 % of the FCR obligation of each LFC Block and the export limit defines the max FCR that an LFC Block can export as: max(30 % of FCR obligations of each LFC Block, 100MW). The limits come from Article 163 of the Regulation (EU) 2017/1485 establishing a guideline on electricity transmission system operation (SO).

We would also like to inform you that the description of the algorithm on the FCR cooperation webpage will be updated with more details latest by mid-December.