AEMO consults on new FCAS markets

1 min

AEMO has published an issues paper and commenced consultation on the Market Ancillary Service Specification (MASS) with regards to two new Frequency Control Ancillary Services (FCAS) markets.

This follows the Australian Energy Market Commission publishing a final determination and a rule in July 2021 to introduce two new market ancillary services – very fast raise, and very fast lower frequency control ancillary services – collectively known as very fast FCAS.

AEMO Executive General Manager Operations, Michael Gatt, said new, faster services would help arrest and stabilise system frequency within operating standards.

“To maintain supply and demand in balance, AEMO relies on frequency control services, which are mostly designed to inject or remove power from the grid, to restore the balance of supply and demand,” Mr Gatt said.

“The power system is transitioning from mainly centralised synchronous generators to more diverse supply portfolio including grid scale and behind-the-meter inverter-based resources, which presents operational challenges with controlling system frequency.

“Introducing faster services has the potential to assist in managing power system frequency and partially mitigate associated costs,” he said.

There are eight types of FCAS currently procured by AEMO through a spot market, which provide a different service and, collectively, assist AEMO’s management of power system frequency within the limits prescribed by the frequency operating standard.

AEMO is commencing a review and consultation on proposed amendments to the MASS to include the new services. The MASS amendments are due to be published by 19 December 2022.

A public forum will be held on Friday 13 May 2022 to provide stakeholders with an opportunity to discuss and ask questions about the content included in the MASS Issues paper. Please register your interest in attending this public forum here.

Submissions on the MASS Issues Paper should be forwarded to by 5.00 pm (AEDT) on Tuesday 14 June 2022.

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