Fast Frequency Response

Very Fast FCAS Market Commencement

On the 15 July 2021, the AEMC made a final rule to introduce two new market ancillary services in the NEM under the existing Frequency Control Ancillary Services (FCAS) arrangements, the very fast raise and very fast lower FCAS markets.

Following consultation with stakeholders and work undertaken by AEMO, the very fast raise and very fast lower FCAS markets opened on Monday 9 October 2023 at 1.00pm (Market Time).

Very Fast FCAS Market Commencement – Go for Monday 9 October 2023

AEMO has reviewed the number of participants registered with pre-dispatch offers in place and the quantity of service offered and has determined that the criteria have been met to commence market operations on Monday 9 October 2023 at 1.00pm (Market Time).

Registration Now Open

Registration is now open for participants who wish to register their eligible facilities for participation in the Very Fast FCAS markets.
Registration can be initiated by completing a Registration application form available at AEMO | Registration (for scheduled and semi-scheduled facilities) or via AEMO’s Portfolio Management System (for non-scheduled facilities who already participate in Contingency FCAS markets).

Background

The Australian Energy Market Commission (AEMC) has made a final rule to introduce two new market ancillary services in the NEM under the existing frequency control ancillary services (FCAS) arrangements, accompanied by additional reporting requirements.

The introduction of these services will help keep the future power system secure and foster innovation in faster responding technologies that will help lower costs for consumers.

The new market ancillary services will allow for fast frequency response (FFR) to be procured by the Australian Energy Market Operator (AEMO) in the form of very fast services to help control power system frequency following sudden and unplanned generation or power system outages, known as contingency events.

The rule requires AEMO to:

• Revise the Market Ancillary Services Specification (MASS) by 19 December 2022 to specify the detailed description and performance parameters for the new very fast services. Now completed.
• Commence operation of the FFR market ancillary service arrangements by 9 October 2023.

The use of these new services is expected to:

• Lower the cost of frequency control ancillary services relative to the expected future costs under a continuation of the current market ancillary service arrangements or other alternative arrangements.
• Incentivise technology development and innovation, given that the types of resources that are most likely to provide such services are those inverter-based technologies, such as wind, solar PV, batteries and demand-side resources.
• The proposed change will also have flow on effects to reliability and security, beyond that associated with management of frequency control.
• FFR services are expected to play a growing role in managing contingency events (an event that affects the power system which would likely involve the failure or sudden and unexpected removal from operational service of a generating unit or transmission element), particularly during periods when there is a lower level of inertia in the power system.

Scope

The very fast FCAS rule introduces two new Contingency FCAS markets:

• Very fast raise contingency FCAS.
• Very fast Lower Contingency FCAS.

They are to operate more rapidly than the existing fast raise and fast lower services in response to the locally sensed frequency of the power system in order to arrest a rise and fall in frequency respectively.

The market arrangements for these new market ancillary services will be the same as those for the existing fast raise and fast lower services.

This includes the arrangements for registration, scheduling, dispatch, pricing, settlement, and cost allocation.

Timeline

The very fast raise and very fast lower FCAS markets opened on Monday 9 October 2023 at 1.00pm (Market Time).

Industry engagement

This initiative forms part of NEM Reform Program and market participants can get involved by visiting:

Reference information

Further information

For further information please contact the FFR team at: NEMReform@aemo.com.au