The AEMC has extended the time for making a draft determination on the two reserve services rule changes to 30 June 2023, due to the complexity of the proposed new market design and other changed circumstances.
These rule change requests relate to the question of whether lining up capacity in a new market or service is necessary to balance the energy market in operational timeframes.
The extension allows time for:
- AEMO to prepare detailed technical advice including design features and key elements of the potential new market, confirming the estimated implementation costs and timetable
- data to be gathered from the provision of reserves from under the recently implemented five-minute financial settlement and wholesale demand response market
- further information on the Energy Security Board’s progression of post 2025 reforms relating to a a capacity mechanism and jurisdictional strategic reserve mechanism.
Introducing a new market mechanism for the procurement of reserves would be a significant energy market reform. It is important to thoroughly assess the concept in the long-term interests of consumers.
The market bodies will continue to monitor the energy market for developments in the commitment of reserves in operational timeframes.