Market Review: Open

Overview

The AEMC Reliability panel has commenced a review of the Frequency operating standard (FOS) that applies in the national electricity system. Consultation on the review commenced on 28 April 2022 with the publication of an issues paper outlining a number of issues for consideration in relation to the control of power system frequency.
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The AEMC Reliability panel has commenced a review of the Frequency operating standard (FOS) that applies in the national electricity system. Consultation on the review commenced on 28 April 2022 with the publication of an issues paper outlining a number of issues for consideration in relation to the control of power system frequency. 

The Panel is investigating the appropriateness of settings in the standard in light of the ongoing energy market transformation, as conventional synchronous generation leaves the market and inverter-based technologies such as wind, solar and batteries enter the market. It is also timely to revisit the FOS given the recent regulatory reform relating to frequency.

There are four key issues for consideration that the Panel has outlined in the issues paper. These include:

  • Settings in the FOS for normal operation
  • The potential inclusion of standards for the rate of change of frequency (RoCoF)
  • The settings in the FOS for contingency events
  • The limit on accumulated time error.

The Panel invites comments and submissions from interested parties in response to the issues paper by 9 June 2022.

Terms of reference

The AEMC has provided terms of reference to the Panel to initiate a review of the FOS. The Terms of reference have been published.

Among other issues for consideration, the Terms of reference require the Panel to consider whether the terminology, standards and settings in the FOS remain appropriate, or any other issues related to the FOS as determined by the Panel.

Key dates for the review:

The Terms of reference require that the Panel completes this review by 7 April 2023.  

MILESTONE PROPOSED DATE
Publish issues paper and terms of reference 28 April 2022
Public forum May 2022
Close to submissions to the Issues paper 9 June 2022
Receive AEMO advice September 2022
Publish Draft Determination November 2022
Publish Final Determination By 7 April 2023

Public forum

The Panel will be holding a public forum for the 2022 FOS review on Friday 27 May between 9.30am and 11.30am (AEST). The forum will provide an opportunity for stakeholders to engage with representatives from the Reliability Panel on issues related to the Frequency operating standard. The forum registration page is available here. Registrations are due by 5pm Tuesday 24 May.  

Background

Under the National Electricity Rules (NER) the Panel is responsible for determining the power system security standards, including the FOS that apply to the national electricity market (NEM). These standards govern the maintenance of system security and reliability in the NEM; both the mainland NEM and Tasmania.

The FOS define the range of allowable frequency for the power system under different conditions, including normal operation as well as after events that occur that can impact the power system. Specifically, it defines the frequency bands and timeframes:

  • in which the system frequency must be restored following different events, such as the failure of a transmission line or separation of a region from the rest of the NEM. 
  • which are referred to by the performance standards that apply to generator and network equipment in the NEM. 

The frequency operating standard for the mainland NEM and Tasmania was last reviewed and determined by the Reliability Panel in 2019.

This review of the FOS is part of a broader program of regulatory reform relating to essential system services that progresses the Energy Security Board’s (ESB) recommendations in the post-2025 work. The review of the FOS is related to the frequency control element of the ESB’s essential system services workstream to “strengthen the grid” and support power system security. 

 

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