What is emergency capital?
Emergency power is flexibly deployable capacity that is used to stabilize the electricity grid in the event of serious disruptions or major imbalances. This concerns capital that is not continuously active, but is kept available to intervene when regular balancing resources fail.
Unlike other forms of control power, emergency power is used in situations where rapid and powerful correction is required to restore the grid frequency. That makes it an essential part of the reliability of the electricity system.
Emergency power is therefore not a standard operational resource, but a critical backup that ensures that the grid continues to function stably even under extreme conditions.
When is emergency power deployed?
Emergency power is used in the event of a large and long-term imbalance on the electricity grid, when other forms of regulating power are not sufficient to absorb this. This can happen, for example, with:
- failure of a major power plant;
- a sudden, sharp increase in electricity demand;
- an unexpected decrease in sustainable generation, such as wind or sun;
- restrictions or disruptions on the electricity grid.
In these situations, rapid and powerful adjustment is required to restore the grid frequency. Emergency power is then activated to correct the difference between supply and demand and prevent further disruptions.
It is therefore only used when it is really necessary: as a last safety net to ensure the stability of the electricity grid.
What is the relationship between emergency power and mFRR?
Emergency power is part of the mFRR (manual Frequency Restoration Reserve) market. Within this market, flexible power is used to correct larger and long-term imbalances on the electricity grid.
mFRR has various forms of deployment. Emergency power has the role of immediately available, often pre-contracted capacity, which is deployed when rapid and reliable adjustment is required, for example in the event of serious disruptions to the grid.
While other forms of mFRR are offered via bids (such as mFRRsa), emergency power is often pre-determined to provide certainty in critical situations.
What is the difference between mFRRsa and mFRRda?
Within the mFRR market, there are two ways in which power can be deployed: mFRRsa and mFRRda. Both are intended to deal with larger disruptions to the electricity grid, but they differ in how the power is provided and available.
- mFRRsa (scheduled activation)
- Market parties actively offer their flexibility on the market. They decide when and under what conditions they make capital available. TenneT then selects from these bids which capacity will be used to balance the grid.
- mFRRda (direct activation)
- Capacity that has been determined in advance and must be immediately deployable. This capability is not first selected through bids, but is ready to be immediately activated as soon as the situation requires it.
How does the mFRR (emergency power) market work?
Making assets available
Market parties and aggregators ensure that flexible capacity is available, via bids (mFRRsa) or via pre-contracted capacity (mFRRda).
Origin of imbalance
If supply and demand diverge significantly, a disruption will occur on the grid that can no longer be resolved with faster reserves.
Activation by TenneT
TenneT decides to use mFRR and sends a signal to increase or decrease additional power.
Controlling energy assets
Connected installations are controlled via aggregators to supply or reduce power.
Restoration of the grid balance
This deployment stabilizes the grid frequency and keeps the electricity grid functioning reliably.
Who provides emergency power?
- Installations that can start up quickly, such as generators that can immediately provide extra capacity
- Industrial energy installations, such as CHP systems that can adjust their production
- Large consumers with flexibility, who can temporarily reduce their energy consumption
How quickly does emergency capacity need to respond?
Emergency power must be deployed quickly and reliably to correct major disruptions to the electricity grid. In practice, this ability should be fully activated within approximately 15 minutes.
This response time is essential, because emergency power is only deployed when other forms of control power are insufficient. At that time there is often a larger imbalance that must be resolved quickly to restore the grid frequency.
Faster reserves such as FCR and aFRR respond within seconds to minutes. The power of emergency power lies in delivering greater power over a longer period, so that the grid remains stable even in the event of long-term disruptions.
Can you earn with emergency capital?
Emergency power can be an interesting source of income for companies with flexibly deployable energy assets. By making capacity available for the mFRR market, parties receive compensation for their contribution to the stability of the electricity grid.
There are two ways in which revenue is generated:
- Compensation for availability
- Companies receive compensation for keeping assets on standby that can be immediately deployed in emergency situations. The installation must be ready to respond at any time, even if no activation takes place. The compensation compensates for the fact that this capacity is reserved for the network and cannot always be used for other purposes.
- Reimbursement upon activation
- If emergency power is actually deployed, parties will receive compensation for supplying or scaling down energy. The amount depends on the moment, the market situation and the degree of imbalance on the grid. Because activations take place during larger disruptions, these moments can be financially attractive.
To participate, there is usually a minimum supply capacity (often around 1 MW). Companies therefore usually participate via an aggregator, which bundles several smaller assets into one deployable asset.
Smartbox
Control energy assets at lightning speed with Smartbox
The Smartbox is an energy management system (EMS) that automatically controls energy assets based on real-time control signals from the energy market.
The system is the technical link between aggregator and installation, and ensures that assets respond directly to activations from markets such as mFRR. The power of Smartbox:
- Receives real-time signals from the aggregator and translates them directly into concrete control of energy assets.
- Ensures that installations respond to activations from the electricity grid within milliseconds to seconds.
- Prevents delays and errors through complete automation of control.
- Makes it possible to deploy flexible power safely and efficiently within balancing markets.
- Provides insight into real-time data and performance via the Smartbox Portal.
Become a Smartbox partner
At Smartbox we are always looking for partnerships with energy companies and installers. Your customers get more return from their installations, while you strengthen your proposition and share in the benefits of flexibility.
Curious about the possibilities? Request an introductory meeting by telephone or email, or fill in our contact form.