A deep dive to into the National Energy Market
FCAS (Frequency Control Ancillary Services) markets in Australia are designed to ensure the stability of the national electricity grid by providing a mechanism for the efficient management of frequency and voltage.
When electricity is generated, it must be consumed at the same time to maintain the balance of the electricity system. If there is an imbalance between the amount of electricity being generated and the amount being consumed, the frequency of the electricity grid can deviate from the standard of 50 Hz. This can cause instability and potentially result in blackouts.
To prevent this from happening, the Australian Energy Market Operator (AEMO) operates the FCAS markets. These markets enable AEMO to purchase services from generators and demand response providers that can help regulate the frequency of the grid. The FCAS markets operate in real-time and are used to manage any imbalances that may arise.
There are eight FCAS markets in Australia, which are divided into two types of frequency control:
Regulation services: These services are used to correct a minor drop or rise in frequency to maintain the network within the Normal Operating Frequency Band of 49.85Hz to 50.15Hz.They are typically provided by large generators. Contingency services: These services are used for major drop or rise in frequency. They provide backup support in case of unexpected events such as a generator or transmission line outage. They are required to respond within six seconds to 5 minutes and are typically provided by fast-start generators ( battery storage systems excel in these markets) and loads that can be rapidly disconnected from electrical systems.
The FCAS markets are open to all market participants, including generators, demand response providers, and large industrial customers. Participants must meet certain technical and operational requirements to be eligible to provide services in the markets.
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