Islanded Fast Frequency Response Services Procurement
Oct. 22, 2024 | Procurement Awarded
In 2024, the AESO conducted a two-staged competition to procure Islanded Fast Frequency Response (FFR) services when Alberta's electric system is weakly connected to or islanded from the rest of the Western Interconnection. The resulting contracts were executed in September 2024, with services set to begin on January 1, 2025 and continue until September 30, 2026. There is an option to extend the term for up to two additional six-month periods.
The AESO awarded contracts to nine facilities, across loads and batteries. Initially, the AESO aimed to procure 140 MW of Islanded FFR. However, following the RFP submission deadline on July 18, 2024, updated studies based on the AESO’s 2024 Long Term Outlook confirmed a revised need of 190 MW. The AESO successfully contracted the revised need, securing the necessary capacity to ensure grid stability.
The AESO would like to thank all those that participated in the RFP to make it a successful competition.
Purpose
The AESO is seeking to procure up to 140 MW of dedicated Islanded Fast Frequency Response (FFR) services for when the Alberta Interconnected Electric System (AIES) is weakly connected to or islanded from the rest of the Western Interconnection (Islanded FFR Services). The Expressions of Interest stage of the competition closed on May 21, 2024, with a strong response from market participants, indicating availability of over 700 MW.
Islanded FFR Services Overview
Islanded FFR Services support frequency in the event Alberta experiences a severe single contingency during planned or unplanned outages on transmission line 5L92 or transmission line 1201L. The duration of planned and unplanned line outage periods varies year to year, but the AESO anticipates that Islanded FFR Services will be required between 10–20 days per year (tentative outages impacting interties are posted on the AESO website).
The AESO is seeking to procure up to 140 MW of dedicated Islanded FFR Services with a service term commencing January 1, 2025. The Request for Proposals stage of the competition, which will be managed through a procurement site called Bonfire (Bonfire site), opened on June 14, 2024. To obtain access to the Bonfire Site, view the RFP documents and participate in the RFP process, participants will need to request access, execute an access agreement and register. The registration process opened and materials were published on May 31, 2024.
Islanded FFR Competition Timeline
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Identification of Prospective Islanded FFR Services Providers | Deadline: May 21, 2024
Minimum Eligibility and Requirements
Following are some of the key eligibility and requirements for the Islanded FFR Services. However, interested parties were requested to review the Draft Islanded FFR Agreement, including Schedule B (Eligibility and Requirements) to determine if their current or future asset(s) may be capable of providing FFR Islanded Services.
- The asset must be located within the Alberta Balancing Authority Area and be connected to the AIES.
- The asset must be able to provide a minimum of 5.0 MW of FFR.
- A rapid Response to the armed FFR volume, subject to the chosen target frequency trigger:
- The asset must be capable of sustaining a Response for 60 minutes.
- The asset may consist of a load, an energy storage resource, a controllable generating unit, or any combination of the foregoing.
- During planned outages of transmission line 5L92 or transmission line 1201L, an asset must be available to be armed for its contract volume for the entire duration of the line outage without interruption (subject to limited exceptions related to unplanned maintenance, state of charge immediately following a FFR response, or transmission constraints/outages).
- During unplanned outages of the lines, commercially reasonable efforts are required to offer as much of the FFR contract volume as possible and as soon as possible.
- An asset that is distribution connected must satisfy the requirements of the distribution facility owner prior to the contract's Long Stop Date of November 15, 2024.
- An asset that is part of the Under Frequency Load Shed program is eligible to provide Islanded FFR Services, except for an asset that is part of Block 1 and the time-delayed Blocks D1, D2 and D3. Stakeholders with assets that are part of Block 1 and the time-delayed Blocks D1, D2 and D3 must be released from such blocks prior to the Long Stop Date of November 15, 2024.
