Implementation plan for the volume limitation on static FCR-D upward regulation

Since 2023, prequalification for delivering FCR-D upward and downward regulation has been split between a static and a dynamic product. However, so far, no limitations have been applied based on this, in the actual capacity procurement.

Starting from September 2026 the TSOs will implement both a fixed and a variable volume limitation on static FCR-D upward regulation within the Nordic synchronous area.  

Implementation in the bid selection and pricing

The volume limitation on static FCR-D will be implemented in the process of bid selection. Static FCR-D bids will thus be treated in the same way as dynamic FCR-D bids up to the volume limitation. Furthermore, accepted bids of static FCR-D will receive the same marginal price as accepted dynamic FCR-D bids.

The reason is to ensure that the provision of FCR-D does not lead to unacceptable risks for operational security or unwanted effects on the frequency when activated. Only a certain amount of the total Nordic demand for FCR-D upward and downward regulation can consist of entities providing static FCR-D during the delivery hour.

Implementation of a fixed and a variable volume limitation

There is a strong correlation between the acceptable amount of static FCR-D and the levels of inertia in the system, which varies over the year. The correlation can be described as: when levels of inertia are low, the volume of static FCR-D must be limited more, and vice-versa for the opposite case. The volume limitation will therefore consist of two components:

1. A fixed volume limitation (percentage) on the maximum amount of static FCR-D, that is valid all year round.
2. A variable volume limitation (percentage) that is dependent on the level of inertia in the system and can therefore vary throughout the year.

The fixed volume limitation will initially be set to 50% of the total Nordic demand for FCR-D upward regulation. A variable volume limitation will act as an addition to the fixed volume limitation, meaning that the total amount of static FCR-D upward regulation can be lower than or equal to 50%, depending on the level of inertia in the system.

More information about how the volume limitation will be divided between TSOs and details of the variable component will be published before implementation in September 2026.

The limitation will be implemented for FCR-D upward regulation firstly due to a larger amount of prequalified static FCR-D in this direction. The TSOs will later develop an implementation plan and decide on the constant and variable components for FCR-D downward regulation.

By setting limitations on the procurement of static FCR-D, the TSOs secure a sufficient minimum share of dynamic FCR-D in accordance with the FCR dimensioning methodology pursuant to Article 153 of the System Operation Guideline. The TSOs will amend the methodology with a more detailed method for calculating the minimum share by March 2028. This timeline allows the TSOs to gain practical experience from applying the initial limitation, which serves as an important input to review the method and to further develop it into a final version to be approved by the regulatory authorities.

More information:

Taneli Leiskamo, Fingrid Oyj, tel. +358 30 395 5240.

Pia Ruokolainen, Fingrid Oyj, tel. +358 30 395 5105

Email addresses are in the format firstname.surname@fingrid.fi.