Energinet moves to continuous mFRR extra auctions for reserve procurement

Energinet announced on 6 May 2025 that it is implementing continuous use of extra auctions for the procurement of mFRR reserves. The change institutionalises a mechanism that was previously deployed selectively, giving market participants a predictable, recurring procurement window rather than an intermittent one.

For mFRR service providers active in DK1 and DK2, the operational implication is clear: extra auctions are no longer an emergency lever but a scheduled part of the procurement cycle. Energinet has not published revised volume or pricing caps alongside the headline announcement, so bid-strategy adjustments should await the supporting methodology documentation.

The timing sits inside a broader recalibration of reserve procurement across north-west Europe. Elia on 27 May 2025 released revised Terms and Conditions for FCR balancing service providers, the latest in a series of framework updates since the EU Balancing Guideline came into full effect. The two moves are independent but point in the same direction: TSOs are locking in structured, rules-based procurement to replace discretionary approaches.

For asset managers with balancing capacity in Scandinavia, continuous extra auctions increase the number of monetisation windows per day for mFRR-qualified assets. The risk is thinner margins if additional auction slots attract more volume and compress clearing prices, an outcome that will only be visible once clearing data from the new regime accumulates.