More options for demand response in providing frequency control services

08 August 2017

The AEMC has made a final rule which expands the number of customers who are eligible to provide market ancillary services. 
 
To date, market ancillary services, such as frequency control ancillary services (FCAS) have been generally provided by large-scale generators. However, the growth in distributed generation and technological innovation has opened opportunities for customer load to provide the FCAS needed for a secure power system. This rule will maximise the number of customers who are eligible to provide FCAS by extending eligibility to customers who were formerly excluded due to their status as ‘non market load’. 
 
This follows the AEMC’s rule made in November 2016 to create a new type of market participant, a Market Ancillary Service Provider (MASP), who can do deals with energy users and offer their load as demand response services to help AEMO control frequency on the electricity system. 
 
This new rule will enable any customer to enter into an agreement with a MASP to offer their load into FCAS market irrespective of who its retailer is. 
 
The rule will come into effect on 29 August 2017.
 
Media: Prudence Anderson, Communications Director, 0404 821 935 or DL (02) 8296 7817.

What are Frequency Control Ancillary Services?

Frequency Control Ancillary Services (FCAS) are necessary for maintaining a secure power system. These services are procured from market participants to help keep power demand and supply continuously balanced. When the frequency is too low, it is increased by FCAS services, which either increase generation or decrease demand. When the frequency is too high, it is reduced by FCAS services which lower generation. Demand response can help re-balance supply and demand, as it can help to maintain the frequency of the power system.