Rule Change: Open

Overview

This rule change request from the Australian Energy Market Operator (AEMO) proposes to make changes to the NER to address perceived disincentives to generators operating their plant in a frequency response mode during normal operation.
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This rule change request from the Australian Energy Market Operator (AEMO) proposes to make changes to the NER to address perceived disincentives to generators operating their plant in a frequency response mode during normal operation. The particular areas of focus relate to:

  • the arrangements for the allocation of regulation service costs, known as 'causer pays'
  • generators prioritising compliance with dispatch instructions over frequency response
  • a perception that the NER requires generators to be frequency responsive only when they are enabled to provide a Frequency control ancillary service (FCAS).

Related rule change requests

This rule change request is one of three rule change requests that the AEMC has received in relation to primary frequency response and frequency control in the national electricity system.

The other related rule change requests are:
•    ERC0274 – Mandatory primary frequency response
•    ERC0277 – Primary frequency response requirements

Consultation paper

On 19 September the AEMC published a consultation paper seeking stakeholder feedback on the proposal. 
This consultation paper addresses the issues raised in all three of the rule change requests relating to primary frequency response.

Submissions on the consultation paper closed on 31 October 2019.

Background

On 3 July 2019 the AEMC received a rule change request from AEMO seeking changes to the NER to address perceived disincentives to generators operating their plant in a frequency response mode during normal operation.

This rule change request relates to part of the Frequency control work plan that sets out actions  the Commission, AEMO and the Australian Energy Regulator (AER) will take to support the stable and secure operation of the power system in relation to frequency control. The frequency control work plan was published in July 2018 as part of the final report for the Commissions Frequency control frameworks review.

This rule change request also follows AEMO’s investigation into the power system disturbance that occurred on 25 August 2018. As part of its operating incident report, AEMO recommended:

“increasing the provision of primary frequency control from capable generation to arrest the decline in system resilience to larger contingency events and maintain frequency closer to 50 Hz.”
 

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Documentation