Consultation: Directions paper on Frequency Control

4 Feb 2021

Submissions Due: 4th February, 2021

The Australian Energy Market Commission (AEMC) have just released a new directions paper on new arrangements for frequency control.

Click here to view the directions paper.

The essential system services are being reviewed largely because of the decline in the responsiveness of generation plant to system frequency together with an increase in variable renewable generation.

The new directions paper builds upon the work currently being undertaken as part of the Energy Security Boards Post-2025 Market Design relating to the essential system services market design initiative.

The AEMC are seeking stakeholder feedback on two rule change requests that relate to fast frequency response and primary frequency response. The responses from this consultation will support the AEMC’s draft determination.

• Infigen Energy – Fast frequency response market ancillary service –Introduction of spot-market arrangements for Fast frequency response (FFR) to help efficiently manage system frequency following contingency events during low inertia operation.
• AEMO – Primary frequency response incentive arrangements – Changes to the NER to support improved frequency control during normal operation.

Submissions to the directions paper are due on the 4^th February 2021 with the draft determination for the Fast frequency response market ancillary services rule change expected to be published by the 22 April 2021 followed by the Primary frequency response incentive arrangements by the 16 September 2021.

Create a Policy Strategy with Nexa Advisory

The AEMC is seeking stakeholder input and engagement on the directions paper for frequency. The reforms will impact a range of interests across the market. A pro-active first step for market participants is to develop a policy position to understand how this market reform may impact your organisation.

Contact Nexa Advisory about what these changes and reviews might mean for your business and help you create and implement policies that shape the energy system and position you for success.