Consultations

Currently, the system operator has limited visibility of the performance of Fast Instantaneous Reserves (FIR) providers during under-frequency events because the procurement plan specifies a six second data resolution requirement for a product that often responds much faster than that.

The system operator and the  Authority attempted to address the visibility issue by consulting on the under frequency management (UFM) initiatives in March 2013. The paper proposed that the providers of FIR submit 100 millisecond (msec) FIR post event data.

The proposal was not supported by stakeholders as it was considered to be too costly, and at worst there was concern that it might lead to unnecessary market exit by some FIR providers. Stakeholders also signalled they require more flexibility in how the matter of FIR event data provision would be addressed. We have therefore concluded the proposal is unlikely to deliver long-term net benefits for consumers and has proceeded to develop with the system operator a new approach to achieve the required visibility of the FIR providers’ performance.

Under the new approach the Authority and the system operator are offering flexibility in the FIR metering arrangements, without compromising the objective of the proposal - to improve the efficiency in the procurement of FIR.

The purpose of this paper is to consult interested parties regarding the:

1. Proposed operational changes to the way the system operator manages under-frequency events:
    - this relates to the reserve management tool (RMT). We are intending to reduce the RMT simulation time, and to better improve the modelling of interruptible load (IL) trip times and the generator response.
2. Changes to the ancillary services procurement plan, which implements some of the above changes:
    - this relates to provision of higher resolution event data by the fast reserve providers.

This paper also seeks views on the longer-term initiatives relating to instantaneous and sustained reserves.