On Tuesday, November 5, 2024, SEPS successfully connected to the PICASSO platform, which is focused on cross-border exchange of balancing energy from automatic frequency restoration reserves (aFRR). The Picasso Project is the international cooperation of 26 transmission system operators (TSOs) associated with ENTSO-E. In the moment of the connection SEPS is the ninth TSO which is in active operation. The Picasso Platform ensures the common procurement of the balancing energy from aFRR for all connected TSOs.The connection of SEPS, and thus Slovakia, to the European PICASSO platform marks the completion of a project that was initially launched as a local implementation project (LIP) on July 1, 2024.
The launch of this first phase brought a significant change in the activation and pricing of the aFRR for managing Slovakia’s electricity transmission system.One of the key changes resulting from the connection to the project is the pricing method of balancing energy from the aFRR service. In this setup, the platform will collect, evaluate and match the available balancing energy bids from the aFRR in relation to the demands of the connected transmission system operators (TSO’s). It will also optimize the activation of BE among different LFC areas within the framework of cross-border exchange, taking into account the available transmission capacities. The cheapest bids will be activated first from the common merit order list up to the bid which price will constitute the cross-border marginal price.
In this context, as per the Regulation of the Slovak National regulatory authorithy No. 246/2023, the maximum allowed price for bids to activate balancing energy from the aFRR+ and aFRR- has been adjusted as of November 6, 2024. After connecting to the PICASSO platform, the aFRR+ and aFRR- price will be determined based on the pricing methodology. In case of any technical issues related to the SEPS connection or the PICASSO platform itself, there is no direct risk for the management of the transmission system. Transmission system operators, including SEPS, are prepared to procure and activate the balancing services in local mode where necessary.
With the sucessful connection to the PICASSO Platform SEPS met its legal obligations steaming from the article 21 of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing With the growing number of connected operators, we anticipate an increase in cross-border exchanges of aFRR balancing energy, as well as greater liquidity on the PICASSO platform itself.
The final technical and procedural preparations are currently underway for the cross-border connection to the MARI Patform, which is scheduled for December 3, 2024. Additionally, in 2025, SEPS also plans to connect to the Capacity Management Module (CMM). This module will complement the PICASSO and MARI platforms by providing more efficient management of free cross-border capacity allocation processes.
What are PICASSO and MARI platforms?
PICASSO (Platform for the International Coordination of Automated frequency restoration and Stable System Operation) is an implementation project of the European platform for the exchange of regulatory energy from reserves for frequency restoration with automatic activation (aFRR). The PICASSO project was founded in August 2017, and SEPS joined it on June 26, 2018, becoming a full member. The official website of the PICASSO project, including information on the current status of the project, is available on the ENTSO-E website, where you can also find the current status of the connection and the connection plan of other TSOs. accession roadmap.
MARI (Manually Activated Reserves Initiative) is an implementation project of a European platform for the exchange of regulation energy from manually activated frequency recovery reserves (mFRR). The MARI project was founded in April 2017, with SEPS joining it on June 26, 2018, becoming a full member. The official website of the MARI project, including information on the current status of the project, is available on the ENTSO-E website, where you can also find the current status of the connection and the connection plan of other TSOs accession roadmap.
The connection of SEPS to the platforms will enable the cross-border exchange of regulation energy from frequency restoration reserves with manual activation (mFRR) and with automatic activation (aFRR) between EU countries (participation is mandatory for all EU countries). Both of these platforms, within the market, will bring to providers of support services on the side of electricity production/consumption the opportunity to provide regulatory energy through SEPS also for other countries in which there will be a requirement for the activation of regulatory services. SEPS will also benefit from them, as the opening of the regulation energy market will bring higher liquidity within the common price scale of the platforms and the possibility to activate the most cost-effective regulation energy offer at the given moment. These European platforms will contribute to balancing efficiency in Europe and integrate the aFRR and mFRR regulatory energy markets and thereby contribute to increased operational security.