Today the Reliability Panel starts consultation on new Guidelines for the Reliability and Emergency Reserve Trader (RERT).
The RERT is a safety net feature that allows the Australian Energy Market Operator (AEMO) to contract for electricity generation reserves where there is a projected shortfall that could affect power system reliability or security.
The RERT Guidelines clarify AEMO’s use of the RERT, including what information AEMO must take into account when deciding whether to exercise the RERT, and also the actions that AEMO may take to be satisfied that the shortfall is unlikely to be addressed by the market.
The RERT Guidelines need to be updated following an AEMC final rule determination in June 2016, which reduced the timeframe in which AEMO may contract for reserves from nine months to ten weeks. This will give the market greater opportunity to respond to a projected shortfall, before the RERT is triggered.
The AEMC considers that the RERT is an important safety feature to address uncertainty arising from a changing generation mix. In particular, the increasing penetration of intermittent renewable generation and the exit of synchronous thermal generation may raise the likelihood of projected reserve shortfalls. Also, market responses to address projected shortfalls may be insufficient, for example if policy uncertainty delays investment in generation capacity in some regions.
The draft report published today sets out the proposed changes to the RERT Guidelines. A marked-up version of the draft Guidelines was also published to facilitate stakeholder feedback.
Consultation will run until 10 November 2016.
Media: Prudence Anderson 0404 821 935 or DL (02) 8296 7817