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RTE has selected eight balancing service providers for the provision of manual frequency restoration and replacement reserves in 2020. The results show the reserve price has been divided by two. The cost of contracting has dropped significantly in relation to 2019.
Launched at the end of June 2019, the call for tenders for contracting of manual frequency restoration and replacement reserves for the period from 1 January to 31 December 2020 led to the selection of eight companies by RTE: Actility Energy, Agregio, Alpiq Energie France, EDF, Energy Pool Développement, Engie, NovaJoule and Smart Grid Energy.
The need expressed by RTE has been fully met. The total amount of the contracting is 8.2 M€, with a manual frequency restoration reserve price of 5.6 k€/MW/year (compared to 12.0 in 2019) and a replacement reserve price of 3.9 k€/MW/year (compared to 7.6 in 2019).
The call for tenders 2020 is notable in terms of increased flexibility of products and conditions for qualification of capacities.
The new products with minimum usage period of less than 15 minutes will respond to significant variations of consumption. It thus provides an important service for the balancing of the grid and therefore for the security of the system.
The conditions for approval and transfers of sites between approved balancing entities and between market participants have also been relaxed.
Through this call for tenders, industries, storage facilities and generation units participating in manual frequency restoration and rapid reserves benefit from additional remuneration, in exchange for permanent provision of their balancing capacity (24 hours/day and 7 days/week). Through this means they contribute to the safety of operation and management of the supply-demand balance of the power system.
Both winners and non-winners of the call for tenders can still be remunerated for their capacity through the capacity mechanism. For this, they will need to obtain certification before the deadline date for certification for the 2020 delivery year.
For more information, see the release on the launch of the manual frequency restoration reserve and replacement reserve call for tenders 2020 or the page dedicated to manual frequency restoration and replacement reserves on the RTE customer service portal. Weekly marginal prices, retained volumes and data relating to anonymous bids are published here.
For any questions, please contact marketservices@rte-france.com.
August 02, 2019