March 9, 2026
In our previous blog post about the frequency reserve market (you can read the blog here), we provided an overview of the reserve services necessary for the functioning of the electrical grid and explained how it is possible to earn extra income with them. This time we take a closer look at one of the most important services, namely aFRR.
aFRR or automatic Frequency Restoration Reserve is a service aimed at keeping the power grid frequency close to 50 Hz and restoring it to permitted limits after a disturbance. In Estonia, the procurement and activation of frequency reserves is organized by the system operator Elering.
Soleron has successfully passed the aFRR prequalification, and our portfolio participates in both the balancing capacity market and the balancing energy market. If you have a battery, a controllable generation unit or flexible industrial demand, we can help bring them to the aFRR market.
What is aFRR and who is it suitable for?
The aFRR market was launched in the Baltics in 2025, and it has quickly become an important source of additional income for flexible energy assets.
aFRR is not meant only for traditional power plants. The following can successfully participate in the market:
- battery storage systems
- controllable solar parks
- biogas plants
- flexible industrial consumers
It is important that the device can change its production or consumption quickly and accurately according to the signal from the system operator.
European cooperation and the PICASSO platform
Frequency maintenance is currently coordinated at the European level. The aFRR energy market is connected to the common European platform PICASSO, which stands for Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation.
PICASSO consolidates the bids and demands of the connected countries and optimizes the activation of aFRR energy across borders. Activation signals are calculated automatically, and the system uses short time intervals of seconds to ensure fast and economical balancing.
The international market means higher liquidity, more activations and better opportunities for flexible assets.
How does aFRR work technically?
The power grid needs constant balancing. The frequency of the power grid constantly fluctuates around 50 Hz. If production and consumption become unbalanced, primary reserves known as FCR react first to stabilize the change in frequency. Then aFRR is activated, the task of which is to smoothly restore the frequency and release the FCR reserve.
aFRR activation happens automatically based on the control signal of the system operator.
Main technical requirements for assets:
- ability to provide the agreed capacity
- full activation within 5 minutes
- continuous and accurate capacity control during activation
- reliable communication and live measurement data transmission
Activation takes place in two directions. Upward regulation means that if the frequency drops, the device must increase production or decrease consumption. Downward regulation means that if the frequency rises, the device must decrease production or increase consumption.
Depending on the system situation, activations can occur several times a day or even several times an hour.
How is money earned in the aFRR market?
aFRR offers two separate revenue streams.
1. Balancing capacity market
The system operator buys a capacity reserve for the next day for a specific time. If the bid is accepted, a fee is paid for the device being ready to react during the agreed hours. The asset owner receives the money regardless of whether the activation actually took place. The goal of the capacity market is to create a predictable availability income.
2. Balancing energy market
Unlike the capacity market, the balancing energy market pays for activation and the actual energy moved. The fee depends on the market price and the activated volume. By combining the stable income of the capacity market and the extra fees of the balancing energy market, a viable business model is created for batteries and controllable consumers.
Technical solution, automated and secure control
aFRR is a fully automated service. The reaction takes place within seconds, and human intervention is not possible at the moment of activation. Control is carried out through SCADA and live control systems.
To provide the service, Soleron:
- integrates the asset with its EMS platform
- ensures secure data communication with the system operator
- controls the devices automatically according to market signals
- continuously monitors technical compliance and performance
If the plant has a SCADA system, we integrate it with our solution. If necessary, we install a Soleron controller that securely connects the asset to our cloud platform.
How to enter the market?
Entering the aFRR market consists of three stages:
- Technical suitability. The asset must meet speed and control requirements.
- Remote control capability. Reliable live control and measurement are required.
- Prequalification. A test by the system operator to prove technical capability.
Every asset must go through the qualification process, but with an experienced partner like Soleron, the process is significantly smoother and faster. After successful prequalification and signing of contracts, the asset participates in the market as part of Soleron’s aggregated portfolio.
Why is aFRR particularly attractive for batteries and controllable assets?
Since the rapid reaction capability of storage devices perfectly matches the needs of the new market, they have the opportunity to earn income from both constant readiness and actual activations. In addition, European-level liquidity offers significant market activity, and a fully automated control solution frees operators from daily manual intervention.
As a result of all this, flexible energy assets are no longer just passive production devices or consumption devices, but active market participants that can bring benefits from multiple revenue layers at once.
Summary
This rapidly growing reserve market provides an excellent opportunity for flexible energy assets to earn extra income. Soleron helps to smoothly carry out the entire process from start to finish. We take care of the technical connection of the devices and the necessary prequalification, and we ensure daily automatic control along with the optimization of the profitability of the entire portfolio.
If you want to know if your battery, solar park or industrial load is suitable for the new market, feel free to contact us. We analyze the technical capability of your devices and show how to earn more with your asset than just conventional energy production.
