FIRMe: Integrated Flexibility in a Market Regime
How does FIRMe work?
The FIRMe project - the first local market for flexibility services - created in 2023 by E-REDES, aims to adapt flexibility requirements and test the market by raising awareness among the players (flexibility service providers - FSP) and encouraging them to participate in this new local flexibility market.
FIRMe aims to challenge consumers/producers to reduce consumption or inject energy into the grid, according to the needs identified by the DSO (Distribution System Operator), and in return they receive a previously agreed amount for their availability. The aim is to find consumers, producers or battery managers who want to offer flexibility to the distribution network.
The first auction, which took place at the end of July 2023, covered eight geographical areas of mainland Portugal, with 21 flexibility service providers (FSPs) responding, using a total of 43 different assets with an accumulated 36MW of power.
The first local flexibility contracts in Portugal were signed in March 2024. Additional auctions are planned throughout the remainder of the year, creating opportunities for both industrial and residential customers.
The second FIRMe auction brought together 23 flexibility service providers, involving 163 enabled assets from a pool of 195 qualified assets among more than 2,000 registered. Bids totalled 82.9 MW, distributed across 163 installations, covering 17 geographical areas across mainland Portugal. A total of 4,117 bids were submitted throughout the process, around seven times more than in the first auction.
The auction included three flexibility product types: Dynamic, Secure and Restore, designed to address different network operation needs. E-REDES expects to accept around 82% of the submitted bids, followed by the validation and technical qualification of service providers and the formalisation of contracts. The operational use of these contracts is expected to begin in January 2026.
