National Electricity Amendment (Primary Frequency Response Incentive Arrangements) Rule 2021
Decided by
Australian Energy Market Commission
Problem being addressed
The performance of system frequency control during normal power system operation is being negatively affected by disincentives to the provision of primary frequency response from generators.
The Australian Energy Market Operator has identified the degradation of frequency performance in the NEM under normal operating conditions over the five-year period from 2015 to 2019 as a key problem.
The degradation of frequency performance during normal operation had resulted in the power system frequency spending more time further away from the target frequency of 50Hz than had historically been the case. This was evidenced as a flattening of the frequency distribution in the power system during normal operation.
AEMO also reported an increased incidence of exceedance events, where the power system frequency falls outside the normal operating frequency band (NOFB). Many of these excursions have occurred under normal operating conditions in the absence of a contingency event.
AEMO identified the degradation of frequency performance during normal operation as being caused by:
- a decline in the provision of PFR by Generators, exacerbated by elements of the NER
- an increase in the variability of generation and load in the power system
- the inappropriateness of secondary regulation services to effectively control system frequency in the absence of primary frequency response
Proposal
To amend the National Electricity Rules to to introduce a rule that would support system security and deliver reduced costs for frequency control over the long term, as compared with the continuation of the current arrangements. The rule would confirm the Mandatory primary frequency response arrangements put in place through a change to the national electricity rules in March 2020 as permanent and enduring. These arrangements require all scheduled and semi-scheduled generators to automatically respond to changes in power system frequency to a narrow response band. The draft rule also includes reforms to better value plant behaviour that helps to control power system frequency.
The AEMC is accepting submissions on the draft rule until 28 October 2021
RIS outcome
Compliant with RIS requirements for National Standard Setting Bodies
Announcement date
16 September 2021
Announcement
https://www.aemc.gov.au/rule-changes/primary-frequency-response-incentive-arrangements