Market Review: Open
The COAG Energy Council has asked the AEMC to review the factors which contributed to the "black system" event experienced in South Australia on 28 September 2016. The AEMC’s review is a forward looking assessment of what changes to the regulatory frameworks are needed to manage new risks faced by the power system.
The review draws on what has been learned since the South Australian black system event in 2016, to identify any structural changes that need to be made. The goal of the review is to reduce the risk of another black system event occurring again in future.
On 15 August 2019 the project team published a discussion paper on how to better manage security risks in a changing power system.
The discussion paper considers key policy areas including:
- treatment of uncertainty from variable generation
- mechanisms to provide increased resilience to high impact, low probability events.
Stakeholders are invited to provide submissions to the discussion paper. Submissions are due by 6 September 2019.
Technical working group
The Commission is convening a technical working group to provide feedback on policy options under development. This group includes representatives from the South Australian government and network businesses, the AER and AEMO, consumer representatives as well as industry representatives nominated by the Clean Energy Council, Australian Energy Council and Energy Networks Australia. The first meeting will be held on 16 August 2019. Minutes of the meeting will be published on this page.
The Commission plans to publish a final report in December 2019.
The original review time table included a draft report to be published in September 2019.
The Commission now plans to proceed directly to publish a final report due to the publication of an additional discussion paper in August 2019.
Issues and approach paper
On 18 April 2019 the Commission published an issues and approach paper to facilitate stakeholder feedback on the systemic issues arising from the SA black system event and the Commission’s approach to the review. Submissions can be found below.
The COAG Energy Council’s terms of reference require the Commission to build on AEMO’s and the AER’s findings regarding the black system event. With the publication of both the AEMO incident report and the AER pre- and post-event compliance report by December 2018, the Commission commenced its review as required by COAG Energy Council in January 2019.
Specifically, the following are addressed:
- contingency classification and the pre-event management of risks to power system security
- system restoration following the black system
- market suspension, and
- arrangements to enhance power system resilience to high impact low probability events.
On 7 August 2019 the AER commenced legal proceedings in respect of market participant compliance during the black system event period. As legal proceedings are currently underway, the Commission is not considering specific issues arising during the period between the loss of the transmission lines in South Australia's mid North and the occurrence of the black system condition. This review is only considering specific matters in respect of the pre- and post-stages of the event.View less
|Stanwell||SA Power Networks|
|MEA Group||Total Environment Centre|
|Ergon Energy and Energex||PIAC|
|Energy Networks Australia||Australian Energy Council|