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.
Usein kysyttyä
- 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.