Why is reserve power needed?
The amount of electricity generated must be equal to the consumption at any time. If this balance is disturbed, the grid frequency may deviate from the standard 50 Hz, which poses risks to the stability of the grid.
Reserve power is needed to immediately absorb these deviations. In practice, small and large fluctuations occur continuously, for example due to:
- varying solar and wind generation;
- sudden changes in energy consumption;
- malfunctions or failure of power stations.
By keeping reserve power on hand, grid operator TenneT can intervene quickly and bring the grid back into balance. This prevents disruptions and ensures that the electricity system continues to function reliably, for you, me and the rest of the Netherlands.
What types of reserve power are there?
Reserve power consists of different layers, each of which plays a specific role in stabilizing the electricity grid. These layers mainly differ in response speed and method of control. These are the three main forms:
FCR
FCR is the fastest form of reserve power and absorbs immediate deviations in the grid frequency. As soon as the frequency deviates from 50 Hz, connected assets respond automatically within a few seconds.
FCR immediately stabilizes the electricity grid before further corrections take place. This form of reserve power is fully automated and requires very fast responses.
Delivered by
- Battery storage systems
- Power plants
- Large-scale industrial installations
aFRR
aFRR is the second layer of reserve power and automatically rebalances the electricity grid after the first correction by FCR. This control is done via real-time signals from TenneT.
aFRR responds within a few minutes and returns the mains frequency to 50 Hz. Unlike FCR, this concerns larger and more targeted power adjustments.
Delivered by
- Battery storage systems
- Hydroelectric power stations
- Gas-fired power stations
- Bundled assets via aggregators
mFRR (sa and da)
mFRR is the third layer of reserve power and is used in the event of a larger or long-term imbalance on the electricity grid. Unlike FCR and aFRR, mFRR is activated manually by TenneT.
mFRR is used when automatic corrections are not sufficient to balance the grid. This form of reserve power is slower to respond, but can shift larger powers to stabilize the system.
Delivered by
- Quick boot installations
- Industrial energy installations
- Companies with flexible energy consumption
What is the difference between mFRRsa and mFRRda?
Within mFRR a distinction is made between two forms: mFRRsa (scheduled activation) and mFRRda (direct activation). Both are used in case of larger and long-term imbalances on the electricity grid, but they differ in how they are made available and activated.
- mFRRsa (scheduled activation)
- Pre-planned reserve power that is made available on the market through bids. Parties indicate when and under what conditions they can supply power, after which TenneT uses this when necessary.
- mFRRda (direct activation)
- Emergency power that is contracted in advance and must be immediately available. It is used in situations where fast and guaranteed capacity is needed to stabilize the grid.
How is reserve power used?
The image below shows the use of reserve power based on an aFRR activation, from imbalance to restoration of the grid frequency.
Imbalance on the grid
Supply and demand differ.
TenneT detects the deviation
The frequency deviation is detected.
Control signal sent
TenneT sends a signal to market parties.
Aggregator translates the signal
Commands are sent to the connected assets.
Assets respond automatically
The net has been restored.
How can you earn with reserve capital?
Reserve power offers companies the opportunity to monetize the flexibility of their energy assets. Instead of just consuming or generating energy, installations can actively contribute to stabilizing the electricity grid.
There are two main ways to generate income:
- 1. Compensation for availability
- Companies receive compensation for making flexible capital available that can be used in the event of an imbalance. This power is on standby and must be immediately available when TenneT requests it.
- 2. Reimbursement upon activation
- If reserve power is actually used, parties will receive compensation for the energy supplied or consumed. These incomes depend on the market situation and the moment of activation.
Energy assets that can respond quickly, automatically and reliably, such as batteries and flexible installations, are particularly suitable for generating income in this market.
Smartbox
Make smart use of reserve power 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 balancing markets such as FCR, aFRR and mFRR. What does a Smartbox do?
- Receives real-time signals from the aggregator and translates them directly to control energy assets.
- Ensures that installations respond to activations from the electricity grid within 20 milliseconds to seconds.
- Automatically increases or decreases power to contribute to the grid balance.
- Makes it possible to deploy flexible power safely and efficiently within different reserve power markets.
- Takes care of the entire implementation on location, without manual intervention.
- Provides real-time insight into performance and data of energy assets via the Smartbox Portal.
Register as a Smartbox partner
As an energy company or installer], do you want to capitalize on reserve power and create new revenue streams for your customers? We work through a partner structure where both you and your customer benefit.
Customers get more return from their energy assets, while you expand your services and share in the benefits of flexibility. Curious about the possibilities? Call or email us, or fill in our contact form.