Frequency performance payments 44 days in, part 2
Categories with a longer bar left of zero are losing more of their spot energy market revenue to regulation and PFR costs.
2025-06-08 Frequency Performance Payments
A series of articles collated here that deal with the change to the method for recovery of FCAS Regulation costs.
Up until Saturday 7th June 2025) recovered by a single sided ‘Causer Pays’ method
From Sunday 8th June 2025) recovered by a new method based on performance against a new measure of frequency requirement and tighter link between performance, system need, and cost allocated. The change is part of the ‘Frequency Performance Payments’ reform.
Frequency Performance Payments 44 days in
An initial review of payment and cost outcomes of the first 44 days of financial operation of the FPP arrangements.
The commencement of Frequency Performance Payments (FPP)
Yesterday (Sunday 8th June 2025) saw the commencement of the new Frequency Performance Payments (a.k.a. FPP) method.
Two diagrams to help illustrate the changes coming with FPP (Frequency Performance Payments)
We've facilitated a number of articles on WattClarity relating to the looming FPP changes (now 10 weeks away). Here's two images I've drawn up to (hopefully) illustrate my understanding of what these changes represent.
Generator exposure to regulation costs under FPP
In his third article, Jack Fox uses the Non Financial Operation (NFO) data to take a look at some VRE units, and how they would have performed under FPP.
The top 10 batteries under FPP
In his second article, Jack Fox uses the Non Financial Operation (NFO) data to take a look specifically at batteries, and how they would have performed under FPP.
An initial look at Winners and Losers from Frequency Performance Payments (FPP)
In his first article, Jack Fox reports some initial observations from a review of the Non Financial Operations (NFO) data that's been published since Dec 2024.
Three headline observations, about the use of proxies for System Frequency in Frequency Control mechanisms
Various authors have shared articles about frequency, frequency control and Regulation FCAS in recent times (including 6 from Linton). Here's three things that jumped out to me in these pieces of analysis.
Comparing Frequency Measures (Frequency, FI, FM)
The faster-moving nature of the FM, with the introduction of FPP, removes predictability in the indicator for frequency performance.
Only 14 weeks to go until Frequency Performance Payments
Full financial operation commences 8 June 2025.
Incentivising primary frequency response
The implementation of the Primary frequency response incentive arrangements rule is driving change in how system frequency is controlled and paid-for. The changes stem from how the NEM will incentivise primary frequency response. 6...
Frequency Performance Payments project commences non-financial operation, 9th December 2024
AEMO's Frequency Performance Payments (FPP) project has commenced in production today under "non-financial operation" (NFO).
AER sends clear message on self-forecasting behaviours
Semi-scheduled generators shouldn't treat self-forecasts as commercial parameters. The regulator holds significant concerns with the biasing of self-forecasts for commercial benefit.
AEMC published final determination for ‘Primary frequency response incentive arrangements’
Some brief notes about the publication by the AEMC (on Thu 8th Sept 2022) of the Final Determination with respect to PFR Incentive Arrangements.