In July 2021, final rules were published to introduce two new market ancillary services – a very fast raise and very fast lower service. These markets would provide an FCAS contingency response faster than the existing 6-second market. The Fast Frequency Response (FFR) markets are set to commence on 9 October 2023, with AEMO releasing information about market specifications by 19 December 2022.
Batteries will potentially dominate this new market, but details around the potential volume and price of the FFR markets remains unknown. Many investors and developers are interested in these details to quantify its potential impact on batteries’ financial performance and build business cases.
In this Chart of the week, we look at 2021 Q4 historical data for the existing batteries and analyse their 5-min bidding data in the contingency 6-second markets. These markets are most similar to FFR and could provide some insights into the potential shape of the FFR.
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