A small update to DER FCAS uptake in the NEM.

This annual review serves as a quick re-cap of what I've been up to and to keep the "make a blog post every year" streak going. It covers work I've been involved in, general trends in the Australian DER industry, and some outlooks for 2025.

At 1pm market time (2pm AEDT) on the 9th of October two new energy markets started in the NEM, the Very Fast Contingency Frequency Control Ancillary Services. Who participated, who was dispatched, and what can this tell us about the technology mix of the new NEM?

Grids believes that this rule change creates the opportunity to consider holistic integration of price-responsive DER into the NEM. One aspect to consider is reducing costs and barriers to participating through AEMO developing fit for purpose systems, processes, and settings suitable for DER participating in system level markets.

This report describes different technology solutions and functions that microgrid projects require, as well as a review of vendor offerings in relation to these functions. The information contained in this report serves as a guide and examples of what groups can consider when assessing and procuring microgrid technologies.

At the end of June 2023 VPPs were required to have faster metering to remain in fast FCAS markets. Which VPPs remained in fast FCAS and which dropped out?

The rise of flexible export limits and reduced static export limits in the national electricity market means that solar systems will be increasingly required to monitor their exports. What is the cost of these extra meters to consumers and is there a better option?

Networks are driving ahead demonstrating technical and commercial feasibility of their new roles and capabilities as a Distributed System Operator. We need greater consideration on the regulatory feasibility and options to efficiently roll out these capabilities.

In the UK networks are allowed to bid customer capacity into competitive markets where they share those revenues between themselves and the customers. How did this occur and what can we learn about good processes to regulated new distributed system operator (DSO) functions?

Reducing minimum registration sizes and bidding increments in the NEM is essential for the uptake and healthy competition of DER in markets. Our current plans don't seem to address this until after 2030, and in some markets we're actually going backwards.

Some quick graphs and stats on DER FCAS enablement in the NEM.

Grids has submitted two rule changes to improve FCAS cost allocations and ensure central dispatch better manages these costs.

Small, incremental changes that can remove barriers to CER market participation.