What is the regulation market?
The control market is the part of the electricity system with which TenneT ensures that the Dutch power grid remains continuously balanced. At any time, the amount of electricity generated must be exactly equal to the consumption. If a deviation occurs, immediate adjustments must be made to maintain the mains frequency at 50 Hz.
In the control market, TenneT therefore purchases control capacity from market parties: flexibly deployable energy assets that can increase or decrease their capacity on request. This adjustment is done automatically or manually, depending on the nature and speed of the disruption.
Why does the regulation market exist?
The control market exists because the electricity grid has no buffer. Electricity must be generated and consumed in exactly the same amount at all times.
If supply and demand become out of balance, the grid frequency deviates from 50 Hz. Without immediate correction, this leads to instability, malfunctions or even large-scale failures.
What is control capacity?
Control capacity is the flexibly deployable capacity that is used to keep the electricity grid in balance. It is not about the supply of energy itself, but about the availability to immediately increase or decrease power as soon as TenneT requests it.
This power quickly corrects deviations between generation and consumption and keeps the grid frequency stable at 50 Hz.
Control capacity must meet strict requirements. Assets must be reliably available, be able to switch within set response times and be able to accurately monitor what the network requires. Depending on the type of control power, the required speed varies from seconds to minutes.
- Up-regulating capacity
- An asset increases its ability to absorb a shortage of electricity on the grid. This can be done by producing extra electricity or by consuming less, so that supply and demand are brought back into balance.
- Adjusting capacity
- An asset reduces its ability to reduce excess electricity on the grid. This is done by producing less or consuming more, so that supply and demand are brought back into balance.
The structure of the regulatory market
The control market is made up of multiple layers of control capacity, each with its own function, response time and moment of use. Thanks to this layered structure, TenneT can effectively correct both very rapid and more structural imbalances.
The greater or longer the deviation, the heavier the drug used.
Primary control power (FCR market)
Primary control power, also called FCR (Frequency Containment Reserve), is the first and fastest defense layer of the power grid. It is deployed as soon as the grid frequency deviates from 50 Hz and intervenes fully automatically, without the intervention of TenneT.
FCR responds immediately to frequency changes: as soon as the frequency increases or decreases, participating assets adjust their power proportionally. This adjustment must take place within seconds and be continuously available. It is precisely this speed and reliability that makes FCR technically demanding.
FCR Market Key Points
- Instantly corrects frequency deviations around 50 Hz
- Fully automatic deployment, without manual activation
- Full power available within 30 seconds
- Power must remain available for continuous use for up to 15 minutes
- Proportional adjustment to frequency change
- European purchased market (cross-border)
Secondary control power (aFRR)
Secondary control power, also called aFRR (automatic Frequency Restoration Reserve), is deployed after primary control power has absorbed the first frequency deviation. The purpose of aFRR is to further restore the grid frequency and to free up the primary control capacity for new disruptions.
aFRR is automatically controlled by TenneT based on central control signals. Unlike FCR, aFRR does not respond directly to the frequency itself, but to a control signal resulting from the measured system imbalance. The adjustment takes place within minutes and can be either upward or downward.
Key points aFRR
- Goal: Normalize frequency and free up FCR capacity
- Automatic control by TenneT via central control signals
- Responds to system imbalance, not directly to frequency
- Activation within minutes
- Both upward-regulating and downward-regulating capacity
- Power must be able to be monitored stably and accurately
- Commitment as long as the imbalance persists
Emergency power (mFRR)
Emergency power, also called mFRR (manual Frequency Restoration Reserve), is used when automatic control means such as FCR and aFRR are insufficient to restore the system balance. It is intended for larger or long-term imbalances that cannot be resolved within seconds or minutes.
mFRR is manually activated by TenneT and consists of pre-contracted power that must be made available within an agreed time. This capacity can be increased or decreased and remains deployed as long as the disruption persists.
Unlike FCR and aFRR, the emphasis here is less on speed and more on reliability and availability. It is the last safety net of the electricity system.
Key points mFRR
- Used when FCR and aFRR are insufficient
- Solution for larger or long-term imbalances
- Manual activation by TenneT
- Pre-contracted control capacity
- Can be used for upward and downward regulation capacity
- Less focused on speed, more on reliability
- Power remains active as long as the disturbance persists
- Crucial for security of supply in extreme situations
Who is the regulations market interesting for?
The control market is interesting for parties that can offer flexible power and make it reliably available to TenneT. This is not about traditional energy trading, but about supplying control capacity: the ability to quickly increase or decrease production or consumption when the grid balance requires it.
In practice, not every party can bid on the control market itself. TenneT works with fixed market roles and technical requirements: the bidding and activation are done via recognized parties, while the physical assets supply the power.
Who can bid and participate in the control market?
- Balancing Service Providers (BSPs)
- Recognized market parties that offer regulating capacity to TenneT and are responsible for activation and settlement.
- Energy producers
- With controllable production installations that can be adjusted up and down flexibly.
- Energy companies and aggregators
- They bundle multiple assets into one reliable control capacity.
- Large consumers with flexibility
- Companies that can temporarily increase or decrease their consumption.
Smartbox
Respond automatically to the regulations market with Smartbox
For maximum return from energy assets, you need a smart energy management system (EMS) that provides automatic control. Smartbox connects technical installations with market signals and grid requirements, so that power is increased or decreased at exactly the right time.
From solar panel installations and wind turbines to charging plazas and battery systems: Smartbox connects them all.
What Smartbox means for the control market:
- Automatic control for FCR, aFRR and mFRR.
- Switches within 20 ms, which is important for frequency-controlled markets such as FCR.
- Assets follow control signals stably and proportionally, in accordance with TenneT's requirements.
- Smartbox monitors status, power and limits to ensure reliability.
- Multiple installations function together as one adjustable power.
- Live insight into all data via the Smartbox Portal.
- In addition to the control market, Smartbox is linked to EPEX, the imbalance market, reserve power, emergency power, intraday trading and other markets.
As an energy company or energy installer], do you want to offer a future-proof solution for grid stability and maximum returns? Read more about how Smartbox works or register immediately as a partner.