Large synchronous generators (such as coal plants) have traditionally provided frequency control, (through the FCAS markets), and another service, inertia – essentially for free. As these power plants leave the system, there maybe a need for another service to maintain power system security.
One such service is so-called “
fast frequency response” (FFR). While not a a direct replacement, it can reduce the need for physical inertia. This is conceptually similar to the contingency services described above, but might occur at the timescale of tens to hundreds of milliseconds, rather than 6 seconds.
The Australian Energy Market Commission is currently going through the process of potentially
introducing a fast frequency response market. In the meantime, obligations on transmission companies are expected to ensure a minimum amount of inertia or similar services (such as fast frequency response).
I suspect that the 70MW portion of the new Tesla battery is designed to provide exactly this fast frequency response.