How Ancillary Services Stabilize the Power Grid

Keeping the power grid in balance is not easy. Surpluses or shortages of electricity occur almost constantly, primarily because true consumption often differs from the original forecasts. How do ancillary service providers deal with these imbalances, and why is their role so important?

  • Published: 28. 01. 2025
  • Written by: Fuergy

In our first video, we explored why maintaining a balance between electricity production and consumption is critical for the power grid. In our second educational video, we take a closer look at how ancillary services work and how FUERGY can plan electricity production and consumption more accurately while also efficiently addressing surpluses and shortages in the grid.

What will you learn in the video?

  • How ancillary services work

    Ancillary services are essential for maintaining the stability of the power grid and maintaining a frequency of 50 Hz, which is crucial for the safe operation of electrical devices. The primary function is to balance electricity surpluses and shortages that arise due to inaccurate production and consumption planning.

Ancillary services are divided into three main levels:

1. Primary Regulation (FCR): Is activated automatically within 30 seconds when a frequency deviation occurs in the grid. This service is often provided by large battery storage systems or flexible energy sources capable of responding quickly to grid needs and restoring frequency stability.
2. Secondary Regulation (aFRR): Responds to fluctuations within 5 minutes, ensuring a medium-term balance. This level of regulation is automatically activated by the distribution system operator and requires a quick yet stable response from providers.
3. Tertiary Regulation (mFRR): Addresses long-term grid imbalances and is primarily used during large-scale fluctuations in energy production or consumption. It is typically activated manually and serves to cover significant imbalances in the energy system, often utilizing sources with greater capacity or flexibility.

The mechanism behind ancillary services lies in the fact that the distribution system operator (SEPS) monitors grid frequency and, in the case of deviations, activates available capacities of ancillary service providers. These providers can leverage technologies such as battery storage or demand-side management, enabling flexible control of energy flows.

Modern solutions, like the brAIn technology by FUERGY, can respond to imbalances efficiently and precisely at the moment when the imbalance is just beginning to form — at the level of individual delivery points. They utilize advanced algorithms and data analysis, including historical consumption, weather forecasts, and electricity prices, to optimize energy flows. At the same time, they bring economic benefits to companies in the form of additional revenue from providing both certified and non-certified ancillary services, as well as reducing energy costs.

  • Why do we pay for ancillary services?

    Ancillary services are the foundation of a stable and reliable power grid. We pay for them because, without them, imbalances between electricity production and consumption could lead to grid instability and ultimately, power outages. Such outages could cause serious consequences for industry, businesses, and households as well.

The costs of support services occur due to two main reasons:

  • Capacity availability: Grid operators pay ancillary service providers to maintain flexible capacities ready for immediate activation, even if they are not actually used. This readiness ensures a rapid response to unpredictable situations.
  • Actual usage: When capacities need to be activated to address grid imbalances, providers get rewarded for the regulatory energy delivered.

For example, in primary regulation, a flexible battery storage system operates continuously in standby mode, with its availability automatically implying activation - since this service is immediate and constant. Unlike secondary and tertiary regulation, where capacities are activated as needed, FCR ensures the ongoing stabilization of the grid frequency at 50 Hz.

These costs are included in electricity prices for end consumers because ensuring a stable electricity supply is in the interest of society as a whole.

Modern technologies, such as the brAIn by FUERGY, allow companies to actively participate in grid stabilization through battery management, technological devices, and predictive planning. These solutions bring additional revenue from ancillary services, optimize peak consumption, make better use of renewable energy sources, and reduce costs for their own energy consumption, shortening the return on investment for technologies while contributing to the overall stability of the power grid.

  • Innovative Solutions from FUERGY

This is where FUERGY comes into play. Our developed software and know-how assist in not only planning and optimizing consumption more accurately, but also to responding flexibly to fluctuations in the grid.

  • Battery Storage brAIn: It automatically manages the charging and discharging of batteries according to the current needs of the grid and the economic interests of customers. It utilizes advanced algorithms and data analysis, ensuring maximum efficiency.
  • Technology Regulation brAIn: It intelligently controls devices such as heat pumps, furnaces, and cooling systems without the need for burning fossil fuels. This regulation increases operational efficiency and reduces the carbon footprint.

The brAIn solution delivers tangible results. For example, at Medeko, it optimizes electricity production and consumption, generating financial benefits from providing ancillary services while reducing overall environmental impact. In just four months, the company has saved 23.3 tons of CO2e emissions with their smart battery storage brAIn and 54.22 tons of CO2e with photovoltaics, representing a 48.33% reduction in emissions compared to the period when these technologies were not used.

Read more about our completed projects.

FUERGY solutions can provide emission-free ancillary services, for which owners of battery storage systems and regulated technologies are financially rewarded. At the same time, they optimize other costs related to electricity consumption and support the decarbonization of the energy sector.

In the next part of our educational video series, we will show you how FUERGY solutions enable customers to become active participants in the energy market.

It's no longer just about the passive role of a customer who pays bills. Thanks to intelligent management, customers can help the grid, save, and even earn a profit.

Are you interested in how you can earn financial rewards for providing ancillary services? Contact us today, and we’ll be happy to explain how our technologies can help you profit from supporting the power grid.

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