National Electricity Market (NEM)

Australia: Australian Capital Territory, New South Wales, Queensland, South Australia, Tasmania and Victoria. Status: operational.

Wholesale design: Mandatory gross-pool, security-constrained dispatch. Energy and ten FCAS products are co-optimised in five-minute dispatch intervals; energy is regionally priced and FCAS has regional prices and requirements.

Operator
Australian Energy Market Operator (AEMO)
Nominal frequency
50 Hz
Where energy trades

Where does energy trade in National Electricity Market (NEM)?

Energy in National Electricity Market (NEM) trades in 2 layers: five-minute spot energy and financial contracts outside the pool.

What a battery can sell

What ancillary services can a battery sell in National Electricity Market (NEM)?

National Electricity Market (NEM) has 10 ancillary-service products, across 3 families — regulation, fast frequency response and other services: Delayed Lower FCAS, Delayed Raise FCAS, Fast Lower FCAS, Fast Raise FCAS, Regulating Lower Service, Regulating Raise Service, Slow Lower FCAS, Slow Raise FCAS, and 2 more. Response timing, direction and eligibility for each are in the cards below, as the official sources state them.

Facts below are stated as the official sources state them. A missing line means the source does not state that value — never that the value is zero.

Regulation

  • Regulating Lower Service LREG

    operational

    Support control of system frequency and accumulated time error for ordinary supply-demand variations within a trading interval.

    Direction
    lower generation; raise load
    Full activation
    5 min
    Trigger / range
    AEMO AGC Lower Signals; not a fixed public frequency threshold.
    Eligibility
    AEMO-registered and enabled FCAS facilities meeting MASS, telemetry, control and minimum-offer requirements.
    Typical procurement
    Requirements vary by interval and region; no stable official typical range is prescribed.

    MASS defines the offered quantity as response delivered progressively over the five-minute trading interval; AGC requests may change during that interval, so there is no separate fixed hold duration.

  • Regulating Raise Service RREG

    operational

    Support control of system frequency and accumulated time error for ordinary supply-demand variations within a trading interval.

    Direction
    raise generation; lower load
    Full activation
    5 min
    Trigger / range
    AEMO AGC Raise Signals; not a fixed public frequency threshold.
    Eligibility
    AEMO-registered and enabled FCAS facilities meeting MASS, telemetry, control and minimum-offer requirements.
    Typical procurement
    Requirements vary by interval and region; no stable official typical range is prescribed.

    MASS defines the offered quantity as response delivered progressively over the five-minute trading interval; AGC requests may change during that interval, so this is not a step-response guarantee and there is no separate fixed hold duration.

Fast frequency response

  • Very Fast Lower FCAS L1

    operational

    Arrest an over-frequency excursion in the first second after a contingency and transition to Fast Lower FCAS.

    Direction
    lower generation; raise load
    Full activation
    1 s
    Trigger / range
    Enabled resource responds automatically when local frequency moves outside the normal operating frequency band; the MASS uses a verification ramp rather than one universal relay setting.
    Eligibility
    Registered FCAS facilities capable of automatic local-frequency response and MASS-compliant high-speed metering.
    Typical procurement
    Dynamic constraint requirements; no stable typical range.

    Offer measurement uses response from disturbance time to 1 s and transition from 1 s to 6 s; no independent fixed hold duration is specified.

  • Very Fast Raise FCAS R1

    operational

    Arrest an under-frequency excursion in the first second after a contingency and transition to Fast Raise FCAS.

    Direction
    raise generation; lower load
    Full activation
    1 s
    Trigger / range
    Enabled resource responds automatically when local frequency moves outside the normal operating frequency band; the MASS verifies against the applicable frequency ramp, not one universal relay setting.
    Eligibility
    Registered FCAS facilities capable of automatic local-frequency response and MASS-compliant high-speed metering.
    Typical procurement
    Dynamic constraint requirements; transition caps have changed over time and are not a typical volume.

    Offer measurement uses response from disturbance time to 1 s and transition from 1 s to 6 s; no independent fixed hold duration is specified.

Other services

  • Delayed Lower FCAS L5

    operational

    Return frequency toward 50 Hz within five minutes and sustain response until central dispatch can rebalance the system.

    Direction
    lower generation; raise load
    Full activation
    5 min
    Sustain
    at least 5 min
    Trigger / range
    Automatic local-frequency response after a contingency.
    Eligibility
    Registered MASS-compliant generation, storage or responsive load.
    Typical procurement
    Dynamic constraint requirements.

    MASS offer calculation measures the delivered response over 1-5 min and again over 5-10 min; 300 s is the verification sustain window after full response.

  • Delayed Raise FCAS R5

    operational

    Return frequency toward 50 Hz within five minutes and sustain response until central dispatch can rebalance the system.

    Direction
    raise generation; lower load
    Full activation
    5 min
    Sustain
    at least 5 min
    Trigger / range
    Automatic local-frequency response after a contingency.
    Eligibility
    Registered MASS-compliant generation, storage or responsive load.
    Typical procurement
    Dynamic constraint requirements.

    MASS offer calculation measures the delivered response over 1-5 min and again over 5-10 min; 300 s is the verification sustain window after full response.

  • Fast Lower FCAS L6

    operational

    Arrest an over-frequency excursion within six seconds and transition to Slow Lower FCAS.

    Direction
    lower generation; raise load
    Full activation
    6 s
    Trigger / range
    Automatic local-frequency response after a contingency; provider-specific droop or switching settings apply.
    Eligibility
    Registered MASS-compliant generation, storage, responsive load or aggregated facilities.
    Typical procurement
    Dynamic constraint requirements.

    Measured over 1-6 s and 6-60 s transition windows; no separate fixed hold duration.

  • Fast Raise FCAS R6

    operational

    Arrest an under-frequency excursion within six seconds and transition to Slow Raise FCAS.

    Direction
    raise generation; lower load
    Full activation
    6 s
    Trigger / range
    Automatic local-frequency response after a contingency; provider-specific droop or switching settings apply.
    Eligibility
    Registered MASS-compliant generation, storage, responsive load or aggregated facilities.
    Typical procurement
    Dynamic constraint requirements.

    Measured over 1-6 s and 6-60 s transition windows; no separate fixed hold duration.

  • Slow Lower FCAS L60

    operational

    Stabilise over-frequency within 60 seconds and transition to Delayed Lower FCAS.

    Direction
    lower generation; raise load
    Full activation
    60 s
    Trigger / range
    Automatic local-frequency response after a contingency.
    Eligibility
    Registered MASS-compliant generation, storage or responsive load.
    Typical procurement
    Dynamic constraint requirements.

    Measured over 6-60 s and 60 s-5 min transition windows; no separate fixed hold duration.

  • Slow Raise FCAS R60

    operational

    Stabilise under-frequency within 60 seconds and transition to Delayed Raise FCAS.

    Direction
    raise generation; lower load
    Full activation
    60 s
    Trigger / range
    Automatic local-frequency response after a contingency.
    Eligibility
    Registered MASS-compliant generation, storage or responsive load.
    Typical procurement
    Dynamic constraint requirements.

    Measured over 6-60 s and 60 s-5 min transition windows; no separate fixed hold duration.

Getting paid to exist

Does National Electricity Market (NEM) have a capacity mechanism?

No central capacity market. National Electricity Market (NEM) has 1 capacity/adequacy arrangement — Retailer Reliability Obligation and Reliability and Emergency Reserve Trader — and it works differently.

Retailer Reliability Obligation and Reliability and Emergency Reserve Trader

operational

If a material forecast reliability gap is identified, the RRO can require liable retailers and large users to demonstrate qualifying contracts for their share of peak demand. AEMO can separately contract out-of-market reserves through RERT.

Auction held in 2025
No — No capacity auction for this market was found to have been held during 2025 in the sources reviewed.

There was no NEM-wide capacity-market auction in calendar 2025. RRO contracting and RERT reserve contracting is not a central capacity auction.

Caveats

Technical notes

Two regulation FCAS markets and eight contingency FCAS markets; non-market system restart and network support services are contracted separately.

Where this comes from

Official sources

Capacity-mechanism explainer

Current as of · from the Global Electricity Market Catalogue v1.2.0 (compiled to , CC BY 4.0). Facts belong to the linked official authorities; verify the current rules before design or bidding decisions.

Questions

Common questions about National Electricity Market (NEM)

Who operates National Electricity Market (NEM)?
Australian Energy Market Operator (AEMO) operates National Electricity Market (NEM), covering Australia: Australian Capital Territory, New South Wales, Queensland, South Australia, Tasmania and Victoria.
Was a qualifying capacity event held in National Electricity Market (NEM) in 2025?
No. Retailer Reliability Obligation and Reliability and Emergency Reserve Trader: no qualifying 2025 event is recorded. No capacity auction for this market was found to have been held during 2025 in the sources reviewed.
How is energy traded, priced and settled in National Electricity Market (NEM)?
National Electricity Market (NEM): Mandatory gross-pool, security-constrained dispatch. Energy and ten FCAS products are co-optimised in five-minute dispatch intervals; energy is regionally priced and FCAS has regional prices and requirements.
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