Market Review: Completed
The RERT guidelines provide additional guidance to AEMO on what to take into account when it uses the RERT. The RERT is a mechanism that allows AEMO to contract for emergency reserves, such as generation or demand response, that are out of market.
The Reliability Panel (Panel) published revised RERT guidelines on 25 July 2019.
On 2 May 2019, the AEMC made a final rule that enhances the RERT framework (Enhancement to the RERT rule). The final rule provides AEMO with the flexibility it needs to meet the operational challenges arising from the transition that is currently occurring in the NEM, which are making it harder to manage the power system, while minimising the costs of doing so.
The final rule also requires the Panel to amend the RERT Guidelines to reflect the changes made as a result of the final rule.
The AEMC issued a Terms of Reference to the Panel to update the RERT guidelines. The Terms of Reference is available below.
On 25 July 2019 the Panel published a final report which sets out the Panel’s proposed changes to the RERT Guidelines and its rationale for those changes. This includes:
- clearer out-of-market provisions
- additional reporting requirements
- a new RERT principle that provides guidance on RERT costs.
The revised RERT Guidelines were published as a separate document and are available below.
Scope of the updated RERT guidelines
In light of the tight implementation timeframes associated with the final Enhancement to the RERT rule, the scope of this review is limited to amending the guidelines so that they are consistent with the final rule.
The Panel will undertake a comprehensive review of the RERT guidelines once the enhanced RERT framework has been used.