Frequency Containment Reserve (FCR)
European Union Electricity Market Glossary



Frequency Containment Reserve (FCR) in the European Union Internal Electricity Balancing Market means operating reserves necessary for constant containment of frequency deviations (fluctuations) from nominal value in order to constantly maintain the power balance in the whole synchronously interconnected system.


Activation of these reserves results in a restored power balance at a frequency deviating from nominal value. This category typically includes operating reserves with the activation time up to 30 seconds. Operating reserves of this category are usually activated automatically and locally.


FCR is is out of the primary scope of the Network Code on Electricity Balancing (NC EB), it is not specifically mentioned there (Supporting Document for the Network Code on Electricity Balancing of 6 August 2014 p. 53).


The settlement between TSO and a Balancing Service Provider (BSP) of energy from a Frequency Containment Reserve (FCR) is left optional in the NC EB due to potentially small volumes of capacity and activated energy and the possible difficulties for measurement associated to the FCR process.


However, also procurement of FCR can follow rules of the NC EB. As the aforementioned Supporting Document concludes, most probably, the decision on procurement rules for FCR will be done by National Regulatory Authorities (NRAs) on a case by case basis.


Consultation Report “FCR Cooperation”, 31 May 201731 May 2017 provided for the following TSOs conclusions regarding the evolution of FCR cooperation market design are the following:


1.  change the auction frequency from weekly auctions to daily all days auctions,


2.  subject to technical feasibility and time restrictions the proposal for GOT and GCT is:

- GCT at 08:00 in D-1,

- Publication time at 08:30 in D-1,

- Gate Opening Time in D-5,


 3. change the product duration from weekly to 4h products,


 4. neither to implement linked bids nor multiple products,


 5. not to introduce a cross border transfer of obligations,


 6. not to introduce asymmetric products,


7.  to allow indivisible bids, with a restriction that no divisible bid can be paradoxically reject- ed. This will be avoided by allowing overprocurement,


8. Maximum bid size of an indivisible bid will be limited to 25 MW,


9.  not to introduce exclusive bids,


10.  to keep the current minimum bid size of 1 MW,


 11. introduce Marginal Pricing as the TSO-BSP Settlement scheme,


12.  to investigate and to come up with a joint solution for harmonisation on these topics:

- Rules for aggregation & Centralized frequency measurement,

- Monitoring & Penalties,

- Backup requirements (n-1).




IMG 0744





Consultation Report “FCR Cooperation”, 31 May 201731 May 2017


Supporting Document for the Network Code on Electricity Balancing of 6 August 2014









- Balancing Energy


- Replacement Reserve (RR)


- Frequency Restoration Reservee (FRR)


- Standard Products


Balancing Capacity





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Last Updated on Monday, 12 June 2017 23:58


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