Market Reviews: Open

Review of the Frequency Operating Standard

Reference:
REL0065
Reviewed by:
Reliability Panel
Initiated by:
Reliability Panel
Date initiated:
30-Mar-2017
Project Leader:
Ben Hiron
Overview

On 11 July 2017 the Reliability Panel (Panel published an issues paper seeking stakeholder comment on issues relating to the frequency operating standard (FOS) that applies to power system frequency in the national electricity market (NEM).

On 11 July 2017 the Reliability Panel (Panel published an issues paper seeking stakeholder comment on issues relating to the frequency operating standard (FOS) that applies to power system frequency in the national electricity market (NEM). 

On 14 July 2017 the Panel published an updated version of the Issues paper. This was necessary to correct an error identified in the original issues paper, which referred to an earlier version of the Tasmanian frequency operating standard. The correct values for the Tasmanian frequency operating standard have now been included in section 2.2.2 and Appendix C of the revised issues paper.

The Panel invites submission to the issues paper by 1 August 2017.
 
The Panel is proposing to complete this review in two stages. This staged approach reflects the various ongoing reviews of market and regulatory arrangements that are likely to have an impact on the Panel’s ability to effectively assess the FOS.

Stage one 

Stage one is underway and is primarily addressing technical issues and changes stemming from the new Emergency Frequency Control Schemes rule, including the inclusion of the new protected event contingency category in the FOS.  
 
The Panel plans to publish a draft report for stage one in late August 2017 followed by a final report in late October 2017.
 
Stage two
 
Stage two will consider the various components of the FOS, including the settings of the frequency bands and time requirements for maintenance and restoration of system frequency. 
 
Stage two will commence at a later date when a number of issues being considered by the Australian Energy Market Commission (AEMC) in the Frequency control frameworks review have been further progressed.
The issues being considered include whether:
  • mandatory governor response requirements should be introduced
  • existing frequency control arrangements remain fit for purpose 
  • Frequency Control Ancillary Services (FCAS) markets are appropriately structured.
The AEMC’s system security and reliability work program
 
The review of the FOS is one part of an integrated approach to addressing current challenges relating to maintaining system security as the NEM undergoes technological transformation.  
 
In June 2017, the AEMC published a final report for the System security market frameworks review . This report outlined a package of reforms to guard against technical failures that lead to cascading blackouts, and to deliver a more stable and secure power supply to Australian homes and businesses.
 
The ongoing review processes that are particularly relevant to the Panel’s review of the frequency operating standard include:
  • the requirement for a minimum level of inertia to manage the rate of change of frequency in the power system.  This is being considered by the AEMC through the Managing the rate of change of power system frequency rule change.
  • changes to the requirements for generator performance with respect to frequency, such as the potential introduction of a mandatory governor response capability. This is being considered through the AEMC’s Frequency control frameworks review.

Background

The terms of reference require that the Panel completes this review by 22 December 2017. 
 
One of the Australian Energy Market Operator’s (AEMO) key obligations under the National Electricity Rules (NER) is to maintain the power system in a secure operating state.  This includes keeping system frequency within the normal operating frequency band.
 
The frequency requirements that AEMO must meet are set out in the FOS, which is defined in the NER and determined by the Reliability Panel. 
 
The FOS includes defined frequency bands and timeframes in which the system frequency must be restored to these bands following different events, such as the failure of a transmission line or separation of a region from the rest of the NEM. These requirements then inform how AEMO operates the power system, including through applying constraints to the dispatch of generation or procuring ancillary services.
 
The FOS currently consists of two separate standards: one for the mainland NEM, and one for Tasmania. This reflects the different physical and market characteristics of the Tasmanian region as opposed to the mainland NEM. 
 
The FOS for Tasmania was last reviewed and determined by the Panel on 18 December 2008. The FOS for the mainland was last reviewed and determined by the Panel on 16 April 2009. 
 
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Documentation

AEMC Documents

AEMC Documents