A series of articles collated here that deal with a reform that did two things:
Outcome #1) the establishment of FPP meant a change to the method for recovery of FCAS Regulation costs.
Outcome #2) it also established some self-funded payments (via carrot and stick) for Primary Frequency Response (PFR)
The key date is 8th July 2025:
Up until Saturday 7th June 2025) Regulation FCAS costs were recovered by a single sided ‘Causer Pays’ method (and there was no payment for PFR)
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.
Guest author (Dr Julian de Hoog) provides some analysis of what has unfolded over the first year of operation of the new Frequency Performance Payments, (FPP) regime - with a particular focus on solar farms.
Categories with a longer bar left of zero are losing more of their spot energy market revenue to regulation and PFR costs.
An initial review of payment and cost outcomes of the first 44 days of financial operation of the FPP arrangements.
Yesterday (Sunday 8th June 2025) saw the commencement of the new Frequency Performance Payments (a.k.a. FPP) method.
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.
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.
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.
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.
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.
The faster-moving nature of the FM, with the introduction of FPP, removes predictability in the indicator for frequency performance.
Full financial operation commences 8 June 2025.
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 Years in the making The rule change proposal was initiated July...
AEMO's Frequency Performance Payments (FPP) project has commenced in production today under "non-financial operation" (NFO).
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.
Some brief notes about the publication by the AEMC (on Thu 8th Sept 2022) of the Final Determination with respect to PFR Incentive Arrangements.