Common Merit Order List (CMOL)
A Common Merit Order List (CMOL) is the price-ordered list of standard balancing-energy bids that a European activation platform uses to clear balancing energy. For mFRR, MARI merges compatible bids from connected TSOs into a common list, then selects the cheapest feasible bids subject to demand and cross-zonal capacity.
A Common Merit Order List (CMOL) is the price-ordered list of standard balancing-energy bids used by a European activation platform. In EBGL, common merit order lists consist of balancing energy bids from standard products, with upward and downward bids separated. The activation optimisation function uses those lists to select the bids needed to cover TSO activation requests.
How it works
Each connected TSO forwards eligible balancing energy bids from its BSPs to the platform. The platform merges compatible bids into one merit order for the relevant direction and Market Time Unit. The optimisation then chooses the cheapest technically feasible set of bids, while respecting activation requests, operational security and available cross-zonal capacity in the balancing timeframe.
Why it matters for mFRR prices
For Estonian mFRR, the relevant platform is MARI. When cross-border capacity is available, Estonian mFRR demand can be met from the wider MARI common merit order instead of only local bids. When capacity binds or the local need is scarce, Estonia can separate from the wider area and the area-specific marginal price can move sharply. That is the mechanism behind many spikes in the mFRR clearing-price chart.
Merit order vs market price
The merit order is the ordered bid stack; it is not itself the settlement price. The settlement price is produced by the clearing result, commonly as a cross-border marginal price or local marginal price after constraints are applied. In a pay-as-cleared balancing-energy market, accepted bids receive the marginal clearing price, not necessarily their individual bid price.
Sources
EBGL Regulation (EU) 2017/2195 Articles 29 and 31 · ACER: Electricity Balancing · ENTSO-E: MARI
Frequently asked
- What is a Common Merit Order List?
- A Common Merit Order List is a price-sorted list of standard balancing-energy bids used by an activation optimisation function. EBGL Article 31 requires upward and downward balancing-energy bids to be kept in separate common merit order lists.
- How does the common merit order affect Estonian mFRR prices?
- MARI can clear Estonian mFRR needs against bids from other connected TSOs when cross-zonal capacity is available. If that capacity binds, Estonia can clear locally, so the marginal mFRR price can diverge sharply from the wider platform price.
- Is the merit order the same as the clearing price?
- No. The merit order is the ordered bid stack. The clearing price is the marginal price produced after the optimisation chooses bids and applies cross-zonal capacity and operational constraints.
Live data
Live datasets where this term shows up