What are balancing markets?
Balancing markets ensure that electricity supply and demand are matched in real time. When the grid frequency deviates from 50 Hz, balancing services are activated to restore equilibrium. Battery owners can participate and earn revenue.
FCR (Frequency Containment Reserve)
- Fastest response: activates within seconds
- Responds automatically to frequency deviations
- Revenue: availability payments (capacity reservation)
- Ideal for batteries due to fast response time
aFRR (Automatic Frequency Restoration Reserve)
- Activates within minutes after FCR
- Larger energy volumes than FCR
- Revenue: both availability and activation payments
- Can be combined with CSC contracts
Revenue stacking
The same flex asset used for a congestion contract can also earn on balancing markets. A CSP/aggregator manages the optimization across markets, ensuring your asset earns maximum returns without conflicting obligations.
Skoon's Flex Scan includes balancing market revenue in its business case calculations. Get in touch to see the full picture.