The first step towards a review of the reliability standard and settings on the national electricity market has been taken, with a specialist panel today releasing an issues paper on the process.

The Reliability Panel is set to consider whether the existing form of the standard and settings are sufficient for future market conditions, particularly given the variables around renewable resources, extreme weather events and limited energy storage. The standard and settings aim to encourage investment in generation or demand response capacity while protecting the market from risk.  

The issues paper sets out the Reliability Panel’s approach to the review, along with modelling work and the identification of key issues for stakeholders to consider. 

The AEMC is considering a rule change request from Energy Security Board Chair Dr Kerry Schott AO, to extend the time for delivery of the panel’s final report due to the outcomes of the ESB post 2025 work and reforms proposed. 

Dr Schott also proposed a change to the scope for the 2022 review so that it only reports on the reliability standard and not the settings.

The rule change request was proposed as a one-off, transitional arrangement for only the 2022 RSS review.

A draft determination was released on 23 December 2021 and a final determination is due by the end of March 2022. 

The draft determination proposes a more preferable rule that sets out the Panel will retain the function of reviewing the reliability settings in the 2022 RSS review. The more preferable rule however would make changes to the panel's responsibilities by:

  • Extending the timing for the 2022 RSS review and final report to the AEMC from 30 April to 30 August 2022.
  • To accommodate the move to 30 August 2022, removing financial year 2024 from consideration in the review. The standards and settings review would therefore be for the period 1 July 2025 to 30 June 2028.

The Panel also notes that there is work underway by the ESB to design a capacity mechanism based on a direction from National Cabinet. The merits and design of a capacity mechanism, along with any associated settings in that context is not in scope for the RSS review. The Panel is collaborating with the ESB so that both processes can be appropriately aligned and dovetail where necessary.

Submissions to the reliability standard and settings review are open until 3 March 2022.

Visit the 2022 reliability standard and settings review for more information and contact details.