Flexcity has operated in the Belgian aFRR market since its opening to independent aggregators in December 2020. 2021 was the first year Flexcity has offered the electric flexibility of its partners through this service to Elia. To conclude this first year, Flexcity gets back on its evolution in aFRR.
To begin with, what is aFRR?
aFRR stands for “Automatic Frequency Restoration Reserve” and is used by the Belgian TSO, Elia, to balance the power grid in case of imbalances. These imbalances are due to an excess of electricity (too much wind for instance) or a lack of electricity (not enough sun).
In case of imbalances, Elia contracts and uses the flexible power from different electric assets that can be gathered to create a pool by independent aggregators such as Flexcity. The aFRR pool of Flexcity supports the grid to balance daily small imbalances of the grid.
> watch our webinar to learn more about aFRR in Belgium
Background
Flexcity entered the aFRR market in December 2020 and was the first independent aggregator to provide power to the grid through aFRR. Efforts in R&D were made in order to comply with the technical requirements of aFRR but the adaptability of our technologies enabled us to deploy it on time.
Flexcity had also already demonstrated its technical performance in the pilot project organized by Elia in 2017 to test its next future service and receive feedback from participants. During this test, Flexcity offered the electric flexibility of a cogeneration and pumps, providing Elia with production and consumption units.
First steps in the aFRR market
The opening of aFRR market meant that distributed assets can provide their power to the market from then. For the first time, Flexcity provided the market with a decrease in the production capacity of one of its partners (aFRR Down) after an excess of electricity was identified during 30 minutes.
During the first 6 months, participation of distributed and non conventional assets in aFRR did not see a significant change. But since then, they currently stand for approximately 30% of Elia’s needs in aFRR. The volume of distributed assets has especially increased from 0 MW to 34 MW in aFRR Down provision and to 18 MW in aFRR UP provision in one year (Source ELIA).
Day-to-day aFRR
Overall, prices were higher than expected in 2021 on the aFRR market. It was mainly due to:
- Elevated gas and CO2 price and volatile electricity prices, leading to volatile and often negative clean spark spreads.
- A specific auction design which made it challenging for conventional generation to price their running costs when offering aFRR.
These high prices noted during the auctions to contract the needed flexible capacity benefited Flexcity’s partners.
Belgium
The Oreye site of Beneo Orafti has decided to participate in the new Belgian aFRR market thanks to Flexcity's expertise. While creating a new revenue stream, the participation of this site from the food industry respects the operational process to not disrupt its chore activities.
Belgium
An efficient partnership between a company from the energy-intensive paper industry and its independent aggregator makes it possible to find out ways to monetize VPK's assets on the energy markets. By making the cogeneration of its Belgian site participate in the aFRR service, VPK Paper has reduced its energy bills.
Managing our partners' electric flexibility in aFRR
Entering the aFRR market was an opportunity for Flexcity to propose another service to its partners and optimally leverage their electric flexibility while supporting the grid more strongly. Beneo and VPK were the first to trust Flexcity to enter the aFRR market in early 2021. At the end of the year, Flexcity had widened its portfolio of aFRR partners.
They were positively surprised by the remunerations they got from their availability and activations. They were more important than in the service mFRR which balances the grid occasionally and is a more competitive market.
Towards 2022
After one year, Flexcity as enabled their partners to:
- Support their national power grid;
- Contribute to energy transition by replacing conventional power plants;
- Receive a remuneration for their participation in aFRR, one of the most lucrative flexibility services;
- Optimize their assets by leveraging their electric flexibility.
Our portfolio also includes more diversified kinds of assets (CHPs, turbines as well as consumption units) from as many diversified sectors (paper industry, food industry, chemicals, …). Now, Flexcity is beginning 2022 by becoming the leading independent aggregator of aFRR in Belgium.
In whatever sector you evolve or whatever asset you manage, a possibility to develop your electric flexibility can exist.