Up- / Down-regulation
Up-regulation (ülesreguleerimine) is the TSO's purchase of additional energy from the system when consumption exceeds forecast or generation falls below it. Down-regulation (allareguleerimine) is the opposite, the TSO sells additional energy out when consumption is lower or generation higher than forecast. The price gap between UP and DOWN is what makes mFRR the highest-yielding reserve product for Estonian batteries since 2024.
Up-regulation (ülesreguleerimine) is the TSO's purchase of additional energy from the system, triggered when actual consumption exceeds forecast or generation falls below forecast. Down-regulation (allareguleerimine) is the opposite, TSO sells additional energy out of the system, when consumption is lower than forecast or generation higher. Both are defined verbatim in Elering's electricity-market handbook.
How activations route to BSPs
When up-regulation is needed, the TSO dispatches aFRR or mFRR up-bids in merit order: cheapest first, until the imbalance is covered. The activated BSPs ramp generation up or load down. Down-regulation reverses the sign, BSPs ramp generation down or load up. A battery sitting at 50% state of charge can in principle bid both directions in the same hour.
Settlement asymmetry
The activated BSPs receive a regulation-direction-specific price (UP or DOWN). Estonian operators see typical asymmetry: UP prices (when the system is short) often clear well above the spot price; DOWN prices (when the system is long) often clear near or below zero. That price gap is what makes mFRR the highest-yielding reserve product for Estonian batteries since 2024.
Frequently asked
- What is up-regulation in electricity balancing?
- Up-regulation (ülesreguleerimine) is the TSO's purchase of additional energy from the system when consumption exceeds forecast or generation falls below it, the system is short, frequency tends below 50 Hz, and the TSO calls on BSPs to ramp up. Up-regulation is settled at the cross-border marginal mFRR or aFRR price (whichever is dominant) plus the monthly neutrality component.
- What is down-regulation?
- Down-regulation (allareguleerimine) is the opposite of up-regulation, the TSO sells excess energy out of the system when consumption is below forecast or generation above it. System frequency tends above 50 Hz; the TSO calls on BSPs to ramp down or absorb energy. Down-regulation is settled at the area downward marginal price minus the neutrality component.
- Why is the up-vs-down spread structurally asymmetric?
- Up-regulation requires fast-ramping generation or demand reduction; down-regulation requires curtailment or absorbing capacity (batteries excel here). Up-regulation tends to clear at scarcity prices when the system is short; down-regulation often clears at zero or negative prices when the system is long. That spread is what has made mFRR the highest-yielding BESS product in Estonia since 2024.
- How does the regulation direction relate to DSB?
- DSB (Direction of System Balancing) is the per-MTU sign of the dominant regulation. DSB +1 means down-regulation was the larger flow that interval (system was net long); DSB −1 means up-regulation was larger (system was net short). The regulation-direction concept is the underlying activity; DSB is the per-MTU indicator that summarises which direction dominated.