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Research

​Frequency Performance Payments deliver limited value to batteries in the NEM
Ancillary Services

21 Aug 2025

Frequency Performance Payments (FPP) replaced the old Causer Pays methodology for frequency deviation penalties on 8 June 2025, adding new incentives for assets to stabilise the system’s frequency. The previous system penalised assets for deviating from their dispatch target but offered no rewards. The new two-sided FPP scheme rewards helpful frequency correction too, creating an additional revenue stream for assets. But how much value does this service generate today, and how does it compare to the old system?
FCAS saturation: how this is hitting BESS revenues in the NEM
Market Analysis

16 May 2025

When battery energy storage systems first appeared in the Australian NEM, most of their earnings came from providing frequency control ancillary services, or FCAS. However, battery FCAS revenues have steadily decreased from $384k/MW/year in 2020 to jus...
ERCOT’s Ancillary Services: a beginner’s guide
Ancillary Services

05 Dec 2024

For battery energy storage systems operating in ERCOT, Ancillary Services made up 87% of revenues in the first half of 2023. ERCOT procures these services in the Day-Ahead Market, and they perform two primary functions: They keep grid frequency at arou...
A Beginner’s Guide to FCAS: Frequency response in the NEM
Ancillary Services

27 Nov 2024

FCAS is the main source of frequency response within Australia’s NEM, split between two different services: Contingency and Regulation. It is bought within the same market as energy and is a significant part of the revenue stack for battery energy stor...

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