Consultation underway on power system frequency obligations for large-scale batteries

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Frequency varies whenever electricity supply does not exactly match consumer demand and uncontrolled changes in frequency can cause blackouts. ‘Primary frequency response’ is an automatic change in the generation or consumption of electricity from a generator or load in response to changes in system frequency.

Frequency response is becoming a valuable service as thermal generators start to exit and the system increasingly relies on weather-driven power generation sources such as wind and solar, as well as batteries.

Primary frequency response requirements and frequency performance payments are designed to incentivise market participants to operate their assets in a way that helps to provide primary frequency response to control system frequency and keep it stable under normal operating conditions.

The Australian Energy Market Commission (AEMC) has made rules to introduce these measures which are expected to drive down the cost of frequency control services over time through increased efficiencies.

A rule change request from the Australian Energy Market Operator (AEMO) is proposing minor changes to the rules to clarify obligations for batteries registered as ‘scheduled bi-directional units’ across their full operating range.

The request proposes amendments to the rules to clarify obligations for batteries to contribute to the market by providing primary frequency response when discharging, charging and enabled for market ancillary services.

In addition to the solutions proposed by AEMO, the AEMC is considering whether other arrangements could also assist with shoring up power system security by promoting the long-term and consistent provision of primary frequency response.

Options may include the voluntary registration of frequency response settings and revisions to the rules to require semi-scheduled generators to seek AEMO approval prior to changing frequency response mode.

Written stakeholder submissions are being accepted until Thursday 31 August 2023.