Market Review: Open

Overview

On 5 November 2018 the Australian Energy Market Operator (AEMO) submitted a request to the Reliability Panel seeking the declaration of a protected event to help AEMO maintain power system security in South Australia at the least cost to consumers. 
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On 5 November 2018 the Australian Energy Market Operator (AEMO) submitted a request to the Reliability Panel seeking the declaration of a protected event to help AEMO maintain power system security in South Australia at the least cost to consumers. 

AEMO has requested that the Panel declare as a protected event “the loss of multiple transmission elements causing generation disconnection in the South Australia region during forecast destructive wind conditions.”

AEMO is currently managing this risk by constraining the amount of power being imported into South Australia from Victoria on the Heywood interconnector when destructive winds are forecast.

However, AEMO believes there are more transparent and cost-effective ways to manage the risk, including by upgrading equipment and improving emergency schemes.

If the Reliability Panel agrees there are net economic benefits from AEMO taking additional pre-emptive actions to manage this particular risk, the Panel will classify it as a protected event.  

Consultation paper

On 13 December 2018 the Panel published a consultation paper seeking stakeholder feedback on the key issues in AEMO’s request. 

The Panel invites written submissions on the consultation paper by Friday 8 February 2019.

Background

The Commission’s final determination on the National Electricity Amendment (Emergency frequency control schemes) Rule in March 2017 introduced protected events as a category of non-credible contingency event for which there are net economic benefits from AEMO taking some pre-emptive action to manage, including the purchase of frequency control ancillary services (FCAS), constraining generation dispatch and the use of Emergency Frequency Control Schemes (EFCS). 

Protected events may be declared by the Panel in response to a request from AEMO. This request is an outcome of AEMO’s 2018 Power System Frequency Risk Review. This is the first request for the declaration of a protected event which has been received by the Panel. 

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Documentation