Upcoming AEMC report on electricity system reliability to be published in mid December

05 December 2017

The AEMC’s interim report for the Reliability Frameworks Review will be published on 19 December 2017.

This review is part of the Commission’s reliability work program.

The interim report will discuss the Commission’s preliminary findings on a number of aspects of the reliability frameworks, including the Finkel Panel recommendations relating to:

  • assessing the need for strategic reserves
  • developing a mechanism for demand response
  • assessing the suitability of day-ahead markets.

As this report is being published prior to the holiday period, the deadline for submissions will be extended to early February. Stakeholders will also have an opportunity to comment on a directions paper which is due in March. The final report including recommended actions will be published in mid 2018.

If stakeholders have any questions about engaging in this review please contact Victoria Mollard, Director on 02 8296 7872.

About the AEMC’s reliability work program

Reliability of the power system is about having sufficient capacity to produce and transport electricity to meet consumer demand. A reliable system requires an adequate supply of dispatchable ‘on demand’ energy, as well as reliable transmission and distribution networks, and a secure operating state (‘system security’).

Dispatchable energy can be supplied through:

  • generation, including large-scale coal, gas and solar plants, wind farms, and distributed energy resources such as rooftop solar and battery storage
  • demand response and other demand-side mechanisms, for example when customers are paid to curtail their electricity consumption.

The AEMC’s system reliability program includes:

  • Reliability frameworks review which is considering the regulatory and market frameworks needed to support a reliable supply of electricity as the power system transforms to include more variable, intermittent generation and demand-side innovation.
  • AEMC's Reliability Panel 2018 review of the the reliability standard and market price settings – a set of parameters that bear on price, investment and ultimately reliability in the national electricity market. The final report is due in April 2018.
  • Assessment of a rule change proposal from AEMO to redefine the conditions when it can declare a lack of reserves (LOR) and signal to the market that electricity reserves are running low. A final determination is due in December 2017.
  • Review into the coordination of generation and transmission investment which is investigating options to improve the coordination of generation and network investment, including potential renewable energy zones, transmission pricing and access. An options paper is due in early 2018.