Announcement date
8 September 2022
Link to announcement
Primary frequency response incentive arrangements | AEMC
Problem being addressed
Frequency varies whenever electricity supply does not exactly match consumer demand and uncontrolled changes in frequency can cause blackouts. Primary frequency response (PFR) is an essential system service that helps to control system frequency close to 50Hz. It is delivered through an automatic change in the generation or consumption of electricity from a generator or load in response to changes in system frequency.
The ability to provide frequency response to keep the grid stable is becoming increasingly important, as lower cost, variable inverter connected generation such as batteries, wind and solar displace thermal generators in the system.
Proposal
On 8 September 2022, the Australian Energy Market Commission (AEMC) published a final determination and a final rule for enduring arrangements to support the control of power system frequency and incentivise plant behaviour that reduces the overall cost of frequency regulation during normal operation
The new incentive arrangements will complement the existing obligation for large generators to support the secure operation of the power system by responding automatically to changes in power system frequency.
Assessed RIS outcome
Compliant Decision RIS