Understanding the decline in FCAS prices
Understanding the decline in FCAS prices
Frequency Control Ancillary Services (FCAS) are essential services that help maintain the stability and reliability of the grid by managing frequency variations. But over recent quarters the revenues available through FCAS have been falling.
According to the latest Quarterly Energy Dynamics report (covering Q1 2025), published by AEMO, total FCAS costs reached $13M in Q1 2025, representing approximately 0.3% of the total cost of consumed energy* for the quarter. This marks a $16M decrease compared to the same period last year. This reduction was mainly driven by lower FCAS prices and a smaller number of volatility events during the quarter, relative to last year.
In this paper we explore the reasons why FCAS prices have fallen and what businesses can do to recoup lost revenues.
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