ERSE approves Overall System Management Procedures Manual to implement standardised European balancing energy product
30/11/2023
Following a consultation process with interested parties, ERSE - the Energy Services Regulatory Authority - approved the Overall System Management Procedures Manual (MPGGS), introducing the standardised European balancing energy product (Manual Frequency Restoration Reserve - mFRR) and incorporating the rules for consumer participation in the provision of system services, after a transitional period that operated as a pilot project.
The European grid codes for the internal electricity market create a harmonised structure for the operation of the electricity markets and promote their integration. In particular, they establish standardised balancing products to be implemented and European platforms for the exchange of balancing energy between Member States.
The details of system services, including balancing services, are set out in the Overall System Management Procedures Manual (MPGGS) approved under the Networks Operation Code (ROR) and the Commercial Relations Code (RRC).
Following a proposal by REN, in its capacity as Overall Manager of the National Electricity System, and after analysing the results of the Stakeholder Consultation process, the ERSE Board of Directors approved the amendment of the MPGGS to introduce the Manual Frequency Restoration Reserve product - mFRR. The main amendments to the MPGGS are as follows:
- The replacement of the Regulation Reserve by a standardised balancing product (mFRR), the main characteristics of which have been approved at European level by the Agency for the Cooperation of Energy Regulators (ACER);
- Membership of the European mFRR Energy Exchange Platform (MARI platform);
- The establishment of a specific transitional fast reserve product for situations where the standardised mFRR product does not meet the management needs of the system, as may occur during major transitions in the interconnection programme and the resolution of certain grid congestion;
- The adjustment of the specific regulation reserve band product (BRR) to a new specific mFRR band product (BmFRR);
- The closure of the pilot project for consumer participation in the system services markets, with the general rules set out in the ROR and MPGGS now applying.
The amendments introduced result from the mandatory implementation of the European regulatory framework applicable to the balancing of the electricity system, which is not yet complete. The use of standardised products facilitates the harmonisation of the procedures to be followed by market players, reducing barriers to their participation, and the exchange of balancing services between balancing zones, to the benefit of the efficiency of balancing costs and the resilience of electricity systems.
The standardisation of consumer participation in system services extends the range of services open to consumer participation, with rules that are consistent with other grid users, as provided for in the regulatory framework. The approved rules benefit from the experience gained in the pilot project launched in 2019, which has attracted participants since its inception. Consumer participation as an active part of the electricity system is essential to better meet the challenges of the energy transition.
