Frequency grid support explained

Keeping the electricity grid’s frequency stable is a complex balancing act. For generators to safely run, Australia’s grid frequency needs to stay as close as possible to 50Hz. Any deviation away from this can have catastrophic consequences, like the state-wide power outages in South Australia in 2016.
 

To help the National Electricity Market (NEM) maintain system security and keep the grid balanced, the Australian Energy Market Operator (AEMO) runs ancillary services markets to procure energy reserves capable of rebalancing the system when it deviates from 50Hz. These are known as the Frequency Control Ancillary Services (FCAS) markets, or what we call frequency control.
 

When power plants or network lines unexpectedly fail, FCAS brings the grid back into the safe frequency range by balancing demand and supply, which helps to prevent widespread blackouts and outages.

Businesses who join our Virtual Power Plant (VPP) have the opportunity to receive regular payments for being available to reduce power consumption when the grid is unbalanced.
 

Frequency control is just one of our VPP programs, alongside other Demand Response or flexibility programs, which has proven critical in helping balance the grid quickly and reliably when needed.
 

How it works:

1. We set up our customers so that  they can respond when the grid is unbalanced. They do this by curtailing energy use of non-critical equipment or seamlessly switching to their  onsite backup generator
2. Our market-leading technology means our customers can respond to deviations in the grid’s frequency in less than one second
3. The grid receives immediate support, and the markets’ response helps to: stop the fall in frequency, bring it back up to the normal operating  range, and ensure the grid is stabilised moving forward
4. Our customers are financially rewarded for helping to keep the grid stable by participating in the FCAS markets.
    

Last year we helped a mid-size cold storage site earn AUD $50,000 from providing frequency control services as part of our VPP.
 

Our other Demand Response programs run in parallel, so you can maximise your total annual value by optimising your flexibility assets across multiple programs.
 

We’ve had a long history working in Demand Response and frequency control services. We entered New Zealand’s Interruptible Load (IL) market in 2008, their equivalent to FCAS. Today, we’re one of the biggest NZIL market participants, representing on average 65% of the interruptible load in the market.

Our experience and expertise offshore enabled us to become the first third-party aggregator in the NEM. Today, we represent up to 30% of the market, offering our customers’ flexible energy load. Our participation has directly contributed to a reduction in FCAS prices (AEMO, 2021), a benefit that flows on to all electricity users.

As the only independent aggregator in the market, we’re uniquely positioned to maximise the earnings for every megawatt available. Our global experience and market-leading technology maximises your site’s market participation every day.

There can sometimes be barriers to entry, which we can help you overcome. Businesses with lower energy loads need an aggregator to participate in the market, due to minimum bidding rules. There can also be high initial equipment costs and technical requirements for participating, which we can also help you navigate. 

In addition to the support of our local team, we have a dedicated 24/7/365 team in Dublin that operates our market portfolio, so you earn revenue at all times.

Want to know more about participating in the FCAS markets?  Get in touch with our team.