July 23, 2024 | Stakeholder Update

In 2024, the AESO conducted a two-stage competition to procure Fast Frequency Response (FFR) services for the next term for when Alberta's electric system is interconnected. This period will commence no later than the long stop date of June 30, 2026, and continue until September 30, 2026, with an option to extend the term for up to two additional six-month periods.

The Request for Expressions of Interest (REOI) stage, which opened on January 29, 2024, and closed on February 20, 2024, assisted the AESO in identifying parties interested in participating in the competition. Information was provided on prospective facilities, and feedback was solicited on the product design, including the technical requirements, payment mechanism and the Fast Frequency Response Agreement.

The Request for Proposals (RFP) stage opened on March 26, 2024, and proposals were accepted until April 22, 2024. Contracts were awarded in Q2 2024.

The RFP attracted strong interest, and the AESO has contracted 603 MW of FFR from twelve service providers from various technologies including loads, energy storage and hybrid facilities at a weighted average arming price of $60.55 per MW-h.

The following table summarizes the FFR capacity contracted by the AESO, detailing existing assets and the expected online capacities by the end of 2024, 2025, and 2026.