Rule Change: Open

Overview

On 2 July 2020, the Australian Energy Market Commission (AEMC) initiated consultation on a rule change request that proposes the introduction of two new market ancillary services for fast frequency response.
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On 2 July 2020, the Australian Energy Market Commission (AEMC) initiated consultation on a rule change request that proposes the introduction of two new market ancillary services for fast frequency response. 

Stable frequency is an important part of maintaining a secure power system. Frequency varies whenever electricity supply does not exactly match consumer demand and uncontrolled changes in frequency can cause blackouts.

This rule change request is being considered as part of a wider Commission work program looking at new ways to deliver system services as the power system evolves.

The rule change request

On 19 March 2020, the AEMC received a rule change request from Infigen Energy to introduce new ancillary service markets for fast frequency response (FFR) to efficiently manage power system risks associated with reduced system inertia.

The proposed markets for raise and lower FFR would operate similar to the existing market arrangements for FCAS.

Extension of time

On 24 September 2020, the Commission extended the timeframe to make a draft determination until 22 April 2021. The extended timeframe is needed so AEMO can develop supporting technical advice through its frequency work plan in stage 2 of its Renewable Integration Study. AEMO’s advice, expected in February 2021, will inform the Commission’s draft decision and any design choice in relation to fast frequency response services or markets

Frequency control work plan

This rule change relates to our Frequency control work plan which sets out a series of actions that AEMO, the AEMC and the AER are undertaking to review and reform the frequency control frameworks in the national electricity market. 

Other relevant system services rule change processes underway 

The AEMC has seven rule change requests relating to the provision of system services that it is currently assessing.  Collectively, the AEMC refers to these rule requests as the “system services” rule change requests.  

These system services rule change requests complement and are interdependent with the work of the Energy Security Board (ESB) to develop advice on a long-term, fit-for-purpose market framework to support reliability that could apply from the mid-2020's. The AEMC is working closely with the ESB and the other market bodies as it progresses these rule change requests.  

We are considering the interactions between issues raised in the different rule changes so that any new frameworks developed in response to the rule change requests will be focused on delivering the most efficient outcomes for consumers.   

The AEMC will be making draft determinations for each of the rule change requests over the coming year prioritising more urgent system security issues while continuing to coordinate with ESB work and seek key technical input from the Australian Energy Market Operator (AEMO).  

More information on each of the system services rule changes can be found at the links below: 

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