Source - Svk BSP Avtal 5937-2 (2025)
Complete contractual and technical framework for Balancing Service Providers (BSPs) delivering balancing services to Svenska kraftnät under Avtal 5937, version 2. Nine documents covering the main agreement, definitions, and six annexes (bilagor) with commercial and technical conditions for each of the three reserve products (FCR, aFRR, mFRR), plus an operational information sheet.
Document set
| Document | Description |
|---|---|
| Huvuddel — Avtal 5937 version 2 | Main BSP agreement; legal framework, obligations, liability, termination |
| Bilaga 1 — Definitioner | Definitions: Balansansvar, BRP, Kvart, Uppreglering/Nedreglering, delivery concepts |
| Bilaga 2 — Villkor FCR | FCR commercial conditions: auction windows, min bid, pricing, penalties, LER reserves |
| Bilaga 3 — Tekniska villkor FCR | FCR technical conditions: product specs, activation dynamics, prequalification |
| Bilaga 4 — Villkor aFRR | aFRR commercial conditions: gate close, min bid, availability, penalty |
| Bilaga 5 — Tekniska villkor aFRR | aFRR technical conditions: activation time, reaction time, SCADA reporting |
| Bilaga 6 — Villkor mFRR | mFRR commercial conditions: dual markets, heartbeat mechanism, budget attributes |
| Bilaga 7 — Tekniska villkor mFRR | mFRR technical conditions: activation time, SCADA reporting, sanctions system |
| Informationsblad v4.0 | Operational guidance: volume limits, non-delivery formula, repurchase procedure |
Version history: Avtal 5937 in force 2024-05-01; current version 5937-2 (this document set) from 2025-09-03.
Extracted text location: Raw/Svk/*-extracted.txt (9 files)
Main agreement — key contractual provisions
- BSP–BRP link: BSPs must hold a Avtal om balansansvar för el (balance responsibility agreement) with Svk. Units delivering balancing services must be covered by balance responsibility at the same delivery point. (Sections 4)
- Settlement agent: Svenska kraftnät has delegated all settlement, invoicing, and payment to eSett Oy on its behalf. Svk also delegates management of collateral/security requirements to eSett Oy. (Sections 5, 7)
- Unilateral amendment right: Svk may unilaterally amend the agreement (including annexes) with at least two months’ notice, after giving the BSP opportunity to comment. (Section 13)
- Termination notice periods: BSP terminates with 1 month notice; Svk terminates with 3 months notice. Agreement auto-terminates if the BSP’s balance responsibility agreement ends. (Section 14)
- Liability for material breach (väsentligt avtalsbrott): penalty (vite) of SEK 100,000; examples of material breach include repeated payment delays, delays >2 banking days after written demand, lacking valid eSett Oy settlement agreement, and systematic under/over-delivery. (Section 8)
- Market surveillance: Svk conducts market surveillance under EU Regulation 1227/2011 (REMIT). BSPs must provide requested information. (Section 2)
FCR — commercial conditions (Bilaga 2)
Products
| Product | Direction | Symmetric |
|---|---|---|
| FCR-N | Both (symmetric) | Yes |
| FCR-D upp | Upward only | No |
| FCR-D ned | Downward only | No |
Each product has a Dynamic and a Static variant (for FCR-D).
Auction windows
| Auction | Gate close |
|---|---|
| Upphandling 1 | D-1, kl. 00:30 |
| Upphandling 2 | D-1, kl. 18:00 |
Bids submitted as hourly volumes. Block bids allowed: up to 6 hours in auction 1; up to 3 hours in auction 2.
Bid parameters
- Minimum bid: 0.1 MW; increments of 0.1 MW
- Pricing: Pay-as-cleared (marginal price) for capacity
- Energy compensation: FCR-N energy is compensated; FCR-D energy is not compensated
Volume limits per BSP resource
| Product | Max volume per unit/group |
|---|---|
| FCR-N | Max 30 MW (≤5% of Nordic FCR-N requirement) |
| FCR-D upp | Max 72.5 MW |
| FCR-D ned | Max 70 MW |
| FCR-N + FCR-D (combined) | Max 100 MW per direction |
Non-delivery penalties
| Scenario | Surcharge |
|---|---|
| Under-delivery reported in advance | 50% of marginal price × deviated volume |
| Under-delivery not reported | 300% of marginal price × deviated volume |
The formula (from Informationsblad v4.0): for unreported under-delivery, penalty = 3 × marginal price × (contracted MW − delivered MW) × hours.
Repurchase (återköp)
BSP may request repurchase of awarded capacity from D-1 until 60 minutes before the delivery hour, against a repurchase price set by Svk.
Limited Energy Reserve (LER) requirements
Resources with limited energy reserves (e.g., batteries) must demonstrate minimum endurance:
| Product | Minimum endurance |
|---|---|
| FCR-N | 60 minutes in each direction |
| FCR-D | 20 minutes |
Extra reserve requirements (reserve on the opposite side):
- FCR-N: 34% extra reserve in each direction
- FCR-D: 20% extra reserve in opposite direction
LER resources must implement AEM (Automatic Energy Management) and/or NEM (Normal Energy Management) functions that activate when the reserve threshold is approached.
FCR — technical conditions (Bilaga 3)
FCR-N
- Activation band: 49.9–50.1 Hz (full symmetric band ±200 mHz, centred on 50 Hz)
- Full activation frequency: ±100 mHz from nominal (i.e., at 49.9 Hz or 50.1 Hz)
- Activation speed: ≥63% of full activation within 60 seconds; ≥95% within 3 minutes
- Sustained delivery: full activation maintained for the duration of the frequency deviation
FCR-D (Dynamic)
- FCR-D upp activation band: 49.5–49.9 Hz (proportional upward response)
- FCR-D ned activation band: 50.1–50.5 Hz (proportional downward response)
- Activation: proportional within the band; dead band ±100 mHz
FCR-D (Static)
- Delay before response begins: ≤2.5 seconds
- Otherwise follows the same frequency activation ranges as Dynamic FCR-D
Prequalification
- Validity: 5 years from approval
- Renewal triggers: technical requirement changes; significant change in equipment
- Suspension: up to 3 months (extendable) for compliance deviations
- Revocation: for serious violations
- Three-level sanctions:
- Nivå 1 (serious): anteckning (notation) or varning (warning)
- Nivå 2 (more serious): formal varning
- Nivå 3 (most serious): revocation of prequalification
Centrally controlled FCR
Resources using central control (rather than local frequency measurement) face separate IT security requirements under two categories:
- Category A: resources where a successful cyberattack could cause large-scale activation failures
- Category B: other centrally controlled resources
Measurement requirements (FCR)
| Power range | Accuracy |
|---|---|
| P < 1.5 MW | ±5% |
| 1.5 MW ≤ P < 10 MW | ±1% |
| P ≥ 10 MW | ±0.5% |
- Frequency measurement: ±10 mHz accuracy
- Sampling during operation: 1-second intervals
- Sampling during tests: 0.1-second intervals
aFRR — commercial conditions (Bilaga 4)
- Gate close: D-1, kl. 07:30 (market opens D-7)
- Minimum bid: 1 MW; increments of 1 MW
- Pricing: pay-as-cleared (marginal price)
- Availability obligation: 100% of dispatched (awarded) volume must be available for delivery
- Non-delivery penalty: marginal price + 10% surcharge on deviated volume
- Exclusive bids: aFRR and mFRR bids may be marked exclusive — if cleared on one market, the other bid is automatically withdrawn; allows cross-market portfolio management
- Transfer of obligations: BSP may transfer delivery obligations within the same bidding zone (elområde)
aFRR — technical conditions (Bilaga 5)
- Full activation time: max 5 minutes from dispatch signal
- Reaction time: max 30 seconds after setpoint received
- Accuracy tolerance:
- Bid ≤10 MW: ±10% of bid volume
- Bid >10 MW: ±1 MW
- Real-time reporting: SCADA signal to Svk every 36 seconds
- Sanctions: same three-level system as FCR
Measurement requirements (aFRR)
- Same power accuracy as FCR (±5% / ±1% / ±0.5% by range)
- Sampling rate: 5-second intervals
mFRR — commercial conditions (Bilaga 6)
Dual-market structure
mFRR has two separate market layers:
| Layer | Purpose | Gate opens | Gate closes |
|---|---|---|---|
| Capacity market (kapacitetsmarknad) | Secure availability commitment | D-7 | D-1, kl. 07:30 |
| Energy market (balansenergimarknad) | Actual activation bids | D-1, kl. 13:00 | 45 minutes before each delivery quarter |
- Minimum bid: 1 MW; maximum 9,999 MW; increments of 1 MW
- Pricing: pay-as-cleared per quarter; marginal price based on scheduled + direct activations (internal congestion direct activations excluded from price formation)
Price filter (after 15-minute day-ahead introduction)
- Up-regulation bids rejected if bid price < day-ahead price
- Down-regulation bids rejected if bid price > day-ahead price
Activation methods
| Method | Timing |
|---|---|
| Scheduled activation (schemalagd) | Every 15 minutes; dispatch signal 7.5 min before start of quarter |
| Direct activation (direkt) | At any time within a quarter; covers current + next quarter |
Heartbeat mechanism
- BSP sends heartbeat to Svk every 5 minutes; response required within 2 minutes
- t-18 heartbeat (18 minutes before delivery quarter): determines availability type
- Positive response → resource available for both scheduled + direct activation
- No response → resource available for direct activation only
- Availability requirement: 99% per week
Non-delivery (avvikelseersättning)
Non-delivery penalty = A × marginal price × deviated volume (MWh)
where A = 2 (avvikelsefaktor). This means two times the marginal price for each MWh of under/over-delivery.
Pro rata activation
Svk can activate less than full bid volume. BSP must respond positively even without delivering the full volume and receives compensation at the requested (pro rata) volume. Activation in 0.1 MW steps.
Budget attributes
Each mFRR bid can carry optional attributes constraining how it may be activated:
| Attribute | Function |
|---|---|
| Max duration | Maximum consecutive activation time |
| Resting time | Minimum off-time between activations |
| Geographical info | Location descriptor for congestion-related dispatch |
| Min offered volume | Minimum indivisible delivery quantity |
| Indivisible | All-or-nothing flag |
| Exclusive group | Mutually exclusive with named other bids |
| Price-ordered group | Must be activated in price order within the group |
| Conditional link | Activation conditional on another bid being activated |
| Technical link | Technical dependency between activation of bids |
| Direct activation flag | Bid available only for direct activation (not scheduled) |
Direct activation for internal congestion
When Svk uses direct activation to resolve internal (intra-Swedish) congestion, the pricing is different from the standard market price:
- Up-regulation: highest of (BSP bid price, system marginal price)
- Down-regulation: lowest of (BSP bid price, system marginal price)
These activations are excluded from the standard marginal price formation.
Exclusive bids (aFRR/mFRR cross-market)
Same as aFRR — bids can be marked exclusive across aFRR and mFRR; clearing on one market automatically withdraws the bid from the other.
mFRR — technical conditions (Bilaga 7)
- Preparation time: 2.5–7.5 minutes from dispatch signal
- Full activation from delivery start: ≤5 minutes
- Full activation time (total): ≤12.5 minutes from dispatch signal
- Real-time reporting: SCADA signal to Svk every 36 seconds
- Availability requirement: 99% per week (confirmed in technical conditions)
- Sanctions: same three-level system (Nivå 1–3) as FCR and aFRR
Measurement requirements (mFRR)
- Same power accuracy as FCR (±5% / ±1% / ±0.5% by range)
- Sampling rate: 10-second intervals
- Resolution: 0.1 MW
Data retention
- All measurement and delivery data: minimum 3 months
- Must be provided to Svk within 5 working days on request
Summary: key product parameters
| Parameter | FCR-N | FCR-D | aFRR | mFRR |
|---|---|---|---|---|
| Min bid | 0.1 MW | 0.1 MW | 1 MW | 1 MW |
| Gate close | D-1 00:30 / 18:00 | D-1 00:30 / 18:00 | D-1 07:30 | D-1 07:30 (cap.) / 45 min before Q |
| Pricing | Pay-as-cleared | Pay-as-cleared | Pay-as-cleared | Pay-as-cleared |
| Energy compensated | Yes | No | Yes | Yes |
| Activation time | ≥63% in 60s, ≥95% in 3 min | Proportional (static: ≤2.5s delay) | Max 5 min | Max 12.5 min (prep 2.5–7.5 min) |
| Non-delivery factor | 50%/300% (unreported) | 50%/300% (unreported) | +10% surcharge | A=2 × marginal price |
| Availability | — | — | 100% dispatched | 99%/week |
| SCADA reporting | 1s (op), 0.1s (test) | 1s (op), 0.1s (test) | every 36s | every 36s |
Relevance to wiki themes
- Balancing Markets: primary source for complete Nordic BSP product parameters, auction design, pricing rules, and penalties
- Svenska kraftnät: defines Svk’s BSP contractual framework, delegation to eSett Oy, and market surveillance role
- Aggregation: BSP–BRP link requirement is contractually mandated; portfolio-level obligations for cross-portfolio aggregation confirmed
- Energy Storage: LER requirements for batteries (FCR-N 60 min endurance; FCR-D 20 min; AEM/NEM functions)
- Network Code on Demand Response: prequalification processes, measurement requirements, and the three-level sanctions structure provide the current national baseline that NC DR must build upon or supersede