The aFRR capacity market allows Balancing Service Providers (BSPs) to offer bids for automatic Frequency Restoration Reserves (aFRR) to the Transmission System Operators (#TSOs). In the Nordics, each country has its own TSO: Denmark is served by #Energinet and Norway by #Statnett.
Currently (as of September 2024), the Nordic countries reserve around 200-300 MW of aFRR capacity per hour, while their combined power consumption sits at approximately 46,000 MW. Interestingly, the Down Regulation Secondary Band accounts for 0.5% of the total power in the system.
Using data from Energinet, I analyzed the aFRR allocations across different grid zones. Summing the values by country, I developed the attached graph, which highlights the regional differences. For example, Denmark contributes very little to this service, while Norway leads due to its flexible hydropower generation. Recently, Sweden has been expanding its participation in this market, gradually taking a portion of Norway’s share.
The Nordics are an interesting case when it comes to balancing energy, given their unique geography and energy mix.
What do you think of the Nordic approach to balancing services?
