About aFRR and Picasso
Automatic Frequency Restoration Reserve (aFRR) is a crucial balancing mechanism that helps maintain grid stability across European electricity networks. Balancing Service Providers (BSPs) submit bids to the merit-order, competing to provide this essential service.
The Picasso platform enables cross-border exchange of aFRR energy bids between connected TSOs (Transmission System Operators), fundamentally altering the competitive landscape for BSPs. For instance, Belgium's connection to Picasso in November 2024 has transformed its aFRR market dynamics.
Picasso's Transformative Impact on aFRR Markets
Picasso connection fundamentally changes national aFRR markets. TSOs now access cross-border energy bids, meaning their local merit-orders no longer reflect all available bids. For example, since Belgium joined in November 2024, Elia's local merit-order represents only a fraction of the bids available.
The scale differences are significant across Picasso countries. For instance, Belgium's ~100 MW merit-order is dwarfed by neighboring markets—Germany (2 GW), France (600-900 MW), and the Netherlands (450 MW).
New Market Dynamics for BSPs
Cross-border aFRR bids have a substantial impact on national market dynamics. In Belgium, for example, extreme negative price activations (below -500 €/MWh) occur much less frequently since Picasso's connection. BSPs across all Picasso countries must now consider cross-border liquidity in their strategies. However, foreign bid availability depends on Available Transmission Capacities (ATCs), which are computed per border, bidirectional, and updated every 15 minutes.
MeteoElec's Picasso Merit-Order Solution
MeteoElec computes comprehensive aFRR "Picasso merit-orders" for all Picasso-connected countries by combining merit-orders from different European TSOs with Available Transmission Capacities per oriented border as published by the Joint Allocation Office (JAO). This includes countries such as Belgium, Germany, France, the Netherlands, and others.
Foreign merit-orders are then intelligently merged into each country's local merit-order wherever transmission capacity is available. This comprehensive view enables BSPs across all Picasso markets to understand the complete competitive landscape and make strategic pricing decisions based on actual market conditions, including cross-border liquidity.
MeteoElec updates the Picasso merit-orders with frequencies ranging from twice daily to once every 15 minutes, ensuring you have the most current market intelligence. This allows BSPs to strategically price their bids based on actual market conditions, regardless of their operating country.
UNDERSTANDING TRANSMISSION CAPACITY
Available Transmission Capacities: The Critical Factor
ATCs are computed per border, are bidirectional (import and export capacity can differ on the same border), and operate with 15-minute granularity. To achieve accurate visibility into aFRR bids available to Elia, it's essential to consider both local and foreign merit-orders alongside ATCs for every 15-minute interval.
- Real-time integration of cross-border merit-orders from Germany, France, Netherlands, and Belgium
- Dynamic ATC calculations per border with 15-minute granularity
- Comprehensive view of volumes and prices available to Elia
- Strategic bidding intelligence for competitive positioning
- Updated between twice daily and every 15 minutes
- API access for seamless integration into your systems
Strategic Advantages for Your Company
With MeteoElec's aFRR Picasso merit-orders, Balancing Service Providers gain comprehensive visibility into volumes and prices available to Elia, enabling strategic bidding decisions that maximize activation potential.
Stay ahead of market dynamics with frequent updates (from twice daily to every 15 minutes) that reflect changing ATCs and cross-border liquidity, ensuring your bidding strategy remains competitive in the evolving Picasso environment.
Merged Picasso Merit-order:
