How is the frequency reserve market for solar parks?
Participants in the frequency reserve market make two-way (Frequency Up & Frequency Down) price offers for specific hours. If Elering needs to control the network frequency at a given hour, they will activate the corresponding directional offers to the extent necessary by transmitting the corresponding command to the market participant. The market participant then charges or discharges the batteries, according to the desired direction and quantity.
The minimum bid size is 1MW, while aggregation of different storage solutions is also allowed. This means that in order to participate in the market, you don’t have to have one huge 1MW battery, but you can also have 10 medium-sized batteries with a capacity of 100kW. Such an aggregation service is called a virtual power plant.