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AEMO considers options for better load management in VIC and SA

The Australia Energy Market Operator (AEMO) continues to estimate there could be a lack of reserve in both Victoria and South Australia for the 2017/18 summer. The latest projections show reserve shortfalls above 800 MW for Victoria and up to 330 MW for South Australia.

The reserve shortfalls have been present for long enough that AEMO no longer believes there will be a sufficient market response unless they intervene.

AEMO has used provisions under the Reliability and Emergency Reserve Trader (RERT) rules to ask for expressions of interest for additional generation to be brought on-line, or for a reduction in demand. AEMO is looking for a RERT Panel which can provide short notice (between three hours and seven-day notice) and medium notice (seven days to ten weeks) support. Members of the panel either agree terms upfront (for short notice) or agree to negotiate (for medium notice) should AEMO require their services. The market operator has also started a long notice tender for RERT which is a full tender for the services.

Any facility which can reduce consumption by at least 10 MW either on its own or across multiple sites during summer can participate if they can maintain their reduction for at least 30 minutes. AEMO is willing to consider relaxing some of these requirements. It is also worth noting the scheme is open to participants from other regions if it supports reliability in Victoria or South Australia.

AEMO is offering to provide payment in return for participation in the RERT. Payments can be for availability usage or early termination.

Submissions for the RERT Panel or long notice RERT is due 7 July 2017.

For more information on the RERT, please visit AEMO’s website.

If you’re concerned about your energy needs in Victoria, South Australia, or elsewhere in Australia – contact us to discuss how we can help.