FCAS

Frequency Control Ancillary Service

Frequency Control Ancillary Service (or FCAS) is an energy related product. It’s not your normal energy product though – it doesn’t run appliances or generate energy.

FCAS is a product supplied by generators or large customers, including Hydro Tasmania, to the Australian Energy Market Operator. Put simply, it can be thought of as insurance for supplying power. If something drastic happens in the national power system (like the loss of a generator or a load through a breakdown) then FCAS is in place to continue the supply of energy.

FCAS is a guarantee that power will continue to be delivered.

The following is for potential FCAS customers in the energy market.

FCAS in Tasmania - Raise Standard Regulated Contract

The Tasmanian Economic Regulator has declared FCAS raise contingency services provided by Hydro Tasmania to meet the Tasmanian local requirement as a regulated service.

The Regulator has specified an FCAS safety net contract which FCAS customers can enter into with Hydro Tasmania.

Certain contract terms and conditions are set by the Regulator in its FCAS Price Determination which includes the pricing methodology and input parameters to that methodology.

For this contract, the contracting party must specify the maximum liability for the 6 second raise service (R6). This will determine the price of the contract as shown in the pricing spreadsheets below. The pricing spreadsheets show the values of the input parameters, calculated in accordance with the Regulator’s FCAS Price Determination, and the application of the pricing methodology to determine the price of the contract. The method for calculating the estimated local Tasmanian requirement (parameter E) is shown here.

 

The contract will be entered into using standard ISDA documentation, namely the ISDA 2002 Master Document, along with the standard Hydro Tasmania ISDA Schedule. These can be obtained from Hydro Tasmania on request.

A pro-forma Confirmation as approved by the Regulator is available here.