TAS1· NEM — 5-min dispatch intervals
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Tasmania's hydro-dominated electricity system makes it a premium provider of FCAS to the National Electricity Market. Hydroelectric generators can respond rapidly to frequency deviations, delivering high-quality regulation and contingency services with minimal marginal cost.
The Basslink HVDC interconnector to Victoria is the sole physical link between Tasmania and the mainland NEM. When Basslink is available, Tasmania exports substantial FCAS capacity to the mainland. However, when Basslink is constrained or on outage, Tasmania becomes an isolated FCAS market with its own pricing dynamics.
Tasmania's FCAS prices are typically among the lowest in the NEM due to abundant hydro capacity. However, the region's small system size means that FCAS prices can be sensitive to local demand conditions and the availability of key generating units.