As Australia races toward a cleaner, more renewable-powered grid, there’s one market mechanism that remains critical to keeping the system stable: Frequency Control Ancillary Services (FCAS). And yet, in recent commentary and investment discourse, FCAS is too often written off as a “mature” or “declining” market — a view that, frankly, misses the point entirely.

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Let’s be clear: FCAS is not just another revenue stream to be arbitraged. It is a foundational tool that underpins the safe operation of the electricity system — especially in a grid dominated by variable renewable energy. As traditional generators exit and inertia drops, we need more assets, not fewer, that can respond quickly to frequency events. Writing off FCAS because prices are lower today than five years ago is not just short-sighted — it’s a fundamental misunderstanding of what this market is designed to do.

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FCAS: A Market for Certainty, Not Scarcity

The Australian Energy Market Operator (AEMO) procures FCAS to ensure there is always enough flexible capacity on hand to respond to deviations in supply and demand. That means fast, precise action from assets like batteries, flexible loads, and even some generators.

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But the value of FCAS isn’t only in the price per megawatt-hour. It’s in the reliability and resilience it provides — especially in a grid that will increasingly rely on fast-acting, decentralised resources. Yes, FCAS prices may have moderated from their 2018–2020 peaks. But that’s largely due to new participants entering the market — a success story of Australia’s energy innovation, not a reason to walk away.

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Participation Matters More Than Price

A healthy FCAS market needs depth. It needs enough flexible participants available at any time to meet the system’s needs. That means valuing participation — even when prices are low — because the alternative is a brittle, underprepared grid.

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If we allow the market to hollow out because prices aren’t headline-grabbing, we risk losing the very capacity we’ll depend on in moments of system stress. In fact, as renewable penetration increases, system disturbances may become more frequent and harder to manage without a robust, well-distributed reserve of responsive assets.

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Rethinking How We Measure “Value”

We should stop treating FCAS solely as a financial play and start treating it like what it really is — essential grid infrastructure. Assets providing FCAS aren’t just chasing upside; they’re investing in the operational security of the power system. This deserves recognition, both in policy and in public commentary.

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Policymakers, aggregators, and asset owners should be pushing for mechanisms that reward availability, capability, and responsiveness — not just scarcity pricing. Whether that means capacity-style payments, expanded contingency products, or embedded value in other markets, the future of FCAS lies in recognising the structural importance of participation.

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PowerSync’s View

At PowerSync, we work with customers every day to unlock the full value of flexibility across energy markets — and that includes FCAS. We know that even when prices fluctuate, the ability to provide fast frequency response is one of the most strategic capabilities an energy asset can offer. That’s why our platform is built to support compliant, automated FCAS participation at scale — across both generation and load.

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But FCAS is just one part of a much larger story. It is a single value stream within a stable and expanding value pool that we unlock for our clients. From wholesale arbitrage and network support to capacity reserves and emergency response, that broader value pool is not shrinking — it’s growing. And with the right technology and market access, our customers are positioned to capture more of it than ever before.

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Because in a future powered by renewables, resilience isn’t optional — and participation is everything.

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