Utilization of Small-Scale Solar Power Production in Finnish Grid-Balancing Markets through a Virtual Power Plant

This study analyses the techno-economic feasibility of small-scale solar photovoltaic (PV) systems (<1 MWp) in Finnish reserve markets through a virtual power plant (VPP) framework. The focus of this study is on the Frequency Containment Reserve for Disturbances (FCR-D) down, which requires rapid response to over-frequency events. In this study, high-resolution production data from one PV portfolio is analysed together with 0.1-second frequency measurements to assess both technical suitability and revenue potential. The results show that aggregated small-scale solar PV systems can actively contribute to grid stability while offering notable financial benefits for solar producers. Compared to pure day-ahead trading, aggregated PV portfolios can offer reserve capacity and generate additional revenues of 5-10 % or 4-6 €/MWh during high output periods, with only marginal energy curtailment.