Europe’s changing FCR auctions and their impact on the energy storage industry

July 2019 saw the introduction of significant changes to the way in which Frequency Control Reserve (FCR) auctions are conducted. Gone are the weekly auctions, replaced by daily auctions in a move designed to create greater flexibility and improve international co-operation in these markets in Europe.

To understand the impact of these changes on the energy storage market – an important factor in balancing the wider electricity market – we must first understand how these FCR auctions work. Power markets across Europe are managed by various services designed to ensure that the frequency of the grid across these markets remains within an acceptable range. These services are designed to respond to and correct any frequency deviations back towards the norm of 50Hz to minimise the chance of blackouts occurring. Across Austria, Belgium, France, Germany, the Netherlands and Switzerland, this is carried out via a common auction of a service (the FCR). 

The full post by Jean-Paul Harreman can be found here