VIC1· NEM — 5-min dispatch intervals
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Victoria's FCAS market is shaped by the region's significant wind generation fleet and the progressive retirement of brown coal generators from the Latrobe Valley. As synchronous thermal generation decreases, the system's inertia reduces, increasing the need for fast frequency response services.
The state's interconnections with New South Wales, South Australia, and Tasmania via Basslink allow FCAS to flow between regions, though constraints on these links can cause material price divergence. Victoria's growing battery fleet — including the Victorian Big Battery — is increasingly active in FCAS markets.
FCAS price volatility in Victoria tends to correlate with periods of high wind generation combined with low synchronous machine availability. These conditions reduce system inertia and increase the volume of fast-response FCAS required, driving up prices for 6-second and 60-second contingency services.