Wind energyProject Hornsdale Wind Farm Stage 2 FCAS Trial
This publication has been prepared by AEMO to provide information about the results of a trial conducted at Hornsdale Wind Farm 2 to establish its ability to provide frequency control ancillary services.
The Australian Energy Market Operator (AEMO) and the Australian Renewable Energy Agency (ARENA) signed a Memorandum of Understanding (MOU) in May 2017 to facilitate collaboration between the organisations in areas of mutual interest such as power system security and reliability. This report outlines the findings of a trial developed under this MOU, focusing on the first National Electricity Market (NEM) wind farm to be registered and to operate in both energy and ancillary services markets.
The Hornsdale Wind Farm 2 (HWF2) trial is the first in-market technical demonstration of a wind or solar farm providing frequency control ancillary services (FCAS) in the NEM1 It was undertaken by AEMO and ARENA in conjunction with NEOEN (owner and operator of the Hornsdale group of projects) and Siemens-Gamesa Australia (equipment provider for the Hornsdale group of wind farms). As a result of the trial, HWF2 is the first Australian wind farm to be registered and offering FCAS in the NEM.
The relative proportion of generation sourced from wind farms in the NEM has been steadily increasing since the early 2000s, particularly in South Australia. Almost all wind farm projects built in Australia in this period have been financed based on a business model relying only on revenue from Large-scale Generation Certificates (LGCs) and sale of energy in the wholesale market. Prior to this trial, frequency control services in the NEM were only provided by thermal plant. AEMO and ARENA expect that broadening the pool of available FCAS providers and making available additional revenue streams for operating wind and solar farms will deliver value for NEM customers by improving market outcomes and increasing supply of system security services.