The french aFRR (Automatic Frequency Restoration Reserve) energy market opened in November 2023. This marked a major step forward in market opening and competition. Additionally, the capacity market became operational in June 2024, offering participants a stable revenue source for their contributions to system reliability.
These new markets present a wealth of opportunities for energy stakeholders. Participants can leverage the aFRR market to optimize the use of flexible assets, such as batteries or demand response systems, by responding to dynamic price signals and capturing high-value opportunities during times of grid stress. The capacity market, meanwhile, rewards the availability of firm capacity, creating incentives for investments in new technologies and resources.
In this analysis, we will dive into the bidding behavior that has emerged since these markets launched, examining strategies used by participants to maximize returns. We will also highlight key opportunities, including the potential for innovative business models and enhanced portfolio optimization. Whether you’re an established market player or new to the space, understanding the dynamics of these markets is essential for capturing value and supporting the transition to a more flexible, resilient power grid. Stay tuned as we uncover actionable insights to help you thrive in these transformative markets.
