FERC Reviewing Provision, Compensation of Primary Frequency Response
February 19,2016
The Federal Energy Regulatory Commission (FERC) is seeking comment on the need to reform its regulations for the provision and compensation of primary frequency response
In a Notice of Inquiry issued yesterday, FERC noted that generators are retiring baseload synchronous units, some of which provide primary frequency response, and replacing them with a changing resource mix that includes a rapid expansion of variable energy resources such as wind and solar. These resources do not typically have primary frequency response capabilities.
That, FERC said, could reduce the net amount of frequency response generation online and present reliability challenges for system operators.
The Commission said that this warrants consideration of steps to ensure maintenance of resources capable of providing primary frequency response as the nation’s resource mix continues to evolve.
FERC's NOI seeks input on whether and what action is needed, including whether to:
• Amend the pro forma Large Generator and Small Generator interconnection agreements to require that all new generation resources have frequency response capabilities as a precondition of interconnection;
• Implement primary frequency response requirements for existing generation resources; and
• Establish procurement and compensation mechanisms for primary frequency response.