Reliability Panel

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Reliability Panel publishes final decision to repeal South Australian ‘destructive winds protected event’

14 September 2023

The Reliability Panel has published its final decision to revoke the South Australian ‘destructive winds’ protected event to protect energy customers from excessive operational costs associated with maintaining power system security.

The Panel has determined that the Australian Energy Market Operator (AEMO) will be able to effectively manage the risk of destructive winds upon South Australia’s system, using the recently revised ‘contingency re-classification’ framework.

The South Australian ‘destructive winds protected event’, also known as the “SA protected event”, is a mechanism that allows AEMO to manage risks to the South Australian power system that may be brought about by destructive winds.

It was introduced by the Reliability Panel in 2019 following the “System Black” event that occurred in South Australia on the 28 September 2016 when around 850,000 customers lost power following gale and storm force winds.

While the SA protected event has allowed AEMO to manage operational risks and take steps to constrain the amount of power being imported into South Australia during destructive winds, the addition of new transmission infrastructure and recent reforms to the contingency reclassification process mean that a new approach is needed.

Stage 1 of Project EnergyConnect (PEC1), a new interconnector between Robertstown in South Australia and Wagga Wagga in NSW, is expected to be completed in April 2024 and will change power flows into and out of South Australia.

With higher capacity transmission infrastructure in place, operational controls required under the current protected event would likely over-constrain the power system, resulting in excessive, unnecessary costs to energy customers.

Early this year, AEMO submitted a request to revoke the SA protected event and instead use the revised contingency reclassification framework, which commenced in 2023, to manage the risk of destructive winds in South Australia with the option to adjust operational controls accordingly to account for changes in the network.

The change will be in place from 30 March 2024, prior to the expected connection of PEC1 with the grid.
For more information, visit the project page.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

The AEMC welcomes a new appointment to the Reliability Panel

27 July 2023

The Australian Energy Market Commission (AEMC) is pleased to announce the reappointment of Craig Memery from the Public Interest Advocacy Centre (PIAC) to the Reliability Panel.

Mr Memery returns in the capacity of end-use customer representative, with his term commencing this month.

Mr Memery has been reappointed to the role following a robust nomination and voting process that involved seeking feedback from end-use consumer groups.

Mr Memery has more than 20 years’ experience in the energy sector including 14 years as a leading consumer advocate and has held senior and advisory positions in energy consumer advocacy, energy grid operations and energy policy, infrastructure and planning. He is currently Senior Advisor, Energy, at PIAC.

More information about the appointment process for the representatives to the Reliability Panel can be found in the National Electricity Rules.

For information on the current Panel Members see here.

Media: media@aemc.gov.au.

Reliability panel begins consultation on applying emissions reduction in the national electricity objective

24 July 2023

The Reliability Panel (Panel) is seeking public feedback on a draft framework that outlines how it would apply an emissions reduction objective to its decision-making process.

The development follows steps taken by energy ministers to fast-track a plan to embed emissions targets in the National Electricity Objective (NEO), that already guides the Panel’s work around the safety, security and reliability of the national electricity system.

In its work, the Panel applies the NEO to guide its decision-making on various projects like reviewing the reliability standards and settings, and setting frequency operating standards, system restart standards, and more.

Following consultation with stakeholders, the Panel will use the draft guide to consider emissions reduction targets when making recommendations or determinations. However, the Panel retains the flexibility to apply the emissions guidance to specific reviews and determinations as it considers appropriate.

The Panel is seeking stakeholder feedback on whether its guide clearly explains how the Panel will take into account the emissions reduction component in its work, and whether further guidance would be helpful. Submissions are due by 18 August 2023.

Visit the project page for more information about the Reliability Panel's draft framework on the emissions reduction objective.

Background on the Reliability Panel

The Reliability Panel forms part of the AEMC’s institutional setup and has functions and powers assigned to it within the National Electricity Law (NEL).

It is the responsibility of the Reliability Panel to monitor, review and report on the safety, security and reliability of the national electricity system plus perform any other functions or powers under the NEL or National Electricity Rules (NER).

The Panel is comprised of members who represent a range of participants in the National Electricity Market, including small and large consumers, generators, network businesses, retailers and the Australian Energy Market Operator (AEMO).

The Panel determines the standards and some of the guidelines used by AEMO and other market participants which help to maintain a secure and reliable power system for consumers.

Media enquiries: Jessica Rich | 0459 918 964 | media@aemc.gov.au

Reliability Panel releases draft determination to repeal South Australian ‘destructive winds protected event’

06 July 2023

The Reliability Panel has made a draft determination that would revoke the South Australian ‘destructive winds protected event’, to help maintain power system security and prevent energy customers from having to pay excessive costs as the system transforms.

The Panel is satisfied that AEMO will be able to effectively manage the risk of destructive winds in south Australia through the recently revised ‘contingency re-classification’ framework.

The Reliability Panel also considers that based on advice from AEMO there are likely to be no negative consequences from revoking or repealing the SA protected event.

The South Australian ‘destructive winds protected event’ (SA protected event) currently allows the Australian Energy Market Operator (AEMO) to manage heightened risks to the South Australian power system that may be caused by destructive winds.

The SA protected event was introduced by the Reliability Panel in 2019 following the “System Black” event that occurred in South Australia on the 28 September 2016 when around 850,000 customers lost power following gale and storm force winds.

While the approach has allowed AEMO to take steps to constrain the amount of power being imported into South Australia by interconnector during destructive winds, new transmission infrastructure and recent reforms to the contingency reclassification process mean a new approach is needed.

Stage 1 of the Project Energy Connect (PEC1) interconnector between Buronga in South Australia and Wagga Wagga in NSW is expected to be completed in December 2023.

With this higher capacity transmission infrastructure in place, operational controls required under the current approach are likely to over-constrain the power system, resulting in excessive, unnecessary costs to energy customers.

AEMO has indicated a preference to revoke the SA protected event and instead use the revised ‘contingency re-classification’ framework, implemented in 2022 to manage the risk of destructive winds in South Australia.

This approach will allow AEMO to adapt the associated operational controls to match changes in the network, such as the connection of PEC1.

The Panel is following the expedited process to assess AEMO’s request to revoke the South Australian protected event. If any person objects to the expedited consultation, they may submit a written request to the Panel by 20 July 2023 to use the standard process.

Visit project page for more information and contact details.

Media: Nicole Stokes, 0401 826 522, media@aemc.gov.au.

End-use consumers now have the chance to provide feedback on Reliability Panel representative

16 June 2023

End-use consumer group are now being invited to provide feedback on their preferred nominees to represent their interests on the Reliability Panel.

The Reliability Panel plays a key role in supporting a safe, secure, and reliable national electricity system and is responsible for recommending the reliability standard and market settings, such as the market price cap.

The Panel also establishes technical standards and guidelines in line with the National Electricity Rules, including the Frequency Operating Standard.

The Panel is chaired by Australian Energy Market Commission (AEMC) Commissioner Charles Popple and includes representatives from a range of market participants, including consumer groups, generators, network businesses, developers of new technology, retailers, and the Australian Energy Market Operator (AEMO).

The term of the current end-use consumer group representative ends on 30 June 2023 and a new end-use consumer representative will be appointed for a term of three years, commencing July 2023.

End-use consumer representatives were invited to nominate individuals working for end-use consumer groups and four nominees were identified. These were:

Craig Memery, Senior Advisor, Public Interest Advocacy Centre (PIAC)
Cherie Dalley, President, Queensland Consumers Association
Chris Joseph, Director, Southern Queensland Landscapes
Ashley Bradshaw, Senior Energy Market Analyst, Energy Consumers Australia (ECA)

End-use consumer groups can provide feedback on these candidates if they wish. The Australian Energy Market Commission (AEMC) will appoint an end-use consumer representative after considering feedback provided through consultation with end-use consumer groups, as well as other relevant factors outlined under clause 8.8.2 of the National Electricity Rules.

The consultation period will close 5pm AEST Friday 30 June 2023.

To find out more, please contact Victoria Mollard, Executive General Manager – Economics and System Security (02) 8296 7872 or victoria.mollard@aemc.gov.au or visit our Reliability Panel page.

Media: Nicole Stokes, 0401 826 522, media@aemc.gov.au.

The AEMC welcomes a new appointment to the Reliability Panel

15 June 2023

The Australian Energy Market Commission (AEMC) is pleased to announce the appointment of Tilt Renewables’ Damien Sanford as the Generator representative to the Reliability Panel from 1 June 2023.

Mr Sanford has been appointed to the role following a robust nomination and voting process.

Mr Sanford has more than 20 years’ of experience in the energy sector and has held senior positions in infrastructure development, energy grid and market operations, and business development. He is currently the Executive General Manager of Operations at Tilt Renewables.
The AEMC also wishes to thank outgoing Panel member Ken Woolley from Alinta Energy for his valued contributions to the Reliability Panel over recent years.

The process for the appointment of representatives to the Reliability Panel can be found in the National Electricity Rules.

For information on the current Panel Members see here.

Media: media@aemc.gov.au.

Call for Generator votes on Reliability Panel representative

04 April 2023

Registered Generators are being called on to vote for their preferred nominees to represent their Registered Participant Class on the Reliability Panel.

The Panel also establishes technical standards and guidelines in line with the National Electricity Rules, including the Frequency Operating Standard.

The Panel is chaired by Australian Energy Market Commission (AEMC) Commissioner Charles Popple and includes a range of market participants from consumer groups, generators, network businesses, developers of new technology, retailers and the Australian Energy Market Operator (AEMO).

The term of the current generator representative ends on 30 May 2023. A new Generator representative will be appointed for a term of three years, commencing June 2023.

Registered Generators were requested to nominate executive level individuals working for registered Generators and seven nominees have been identified. These are:

Faiqa Anam, Deputy Project Manager, Edenvale Solar Farm
Markus Brokhof, Chief Operating Officer, AGL
Ben Burge, Executive Director, Telstra Corporation - leading Telstra Energy
Cameron Fisher, General Manager Trading, Snowy Hydro
Vedran Kovac, Executive General Manager Commercial, Hydro Tasmania
Trevor Lim, Senior Manager Market and Grid, Total Eren
Damien Sanford, Executive General Manager Operations, Tilt Renewables

Generators may show their support by voting for more than one nominee and a representative can only be appointed once the support of at least one third of registered generators has been attained through the voting process, as per the National Electricity Rules (clause 8.8.2).

Generators have been directly notified of the opportunity to vote and this requirement. Voting will close 5PM AEST Friday 14 April 2023.

To find out more, please contact Victoria Mollard, Executive General Manager – Economics and System Security (02) 8296 7872 or victoria.mollard@aemc.gov.au or visit our Reliability Panel page.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

Reliability Panel’s 2021–22 Annual Market Performance Review released

30 March 2023

A review of the performance of the National Electricity Market (NEM) for the 2021–22 financial year has found that the energy system maintained high levels of reliability, security and safety despite exceptionally challenging circumstances.

The Reliability Panel today released its 2021–22 Annual Market Performance Review of the system, providing an assessment of the reliability, security and safety of the NEM, including the market suspension event that occurred between 12 and 24 June 2022.

The annual review is prepared using data, insights and information from across the market and offers an analysis in one place for energy market participants to access.

The Reliability Panel’s findings from the June 2022 event are consistent with those from other market bodies and point to a confluence of planned and unplanned thermal outages, low variable energy generation periods, high customer demand, high commodity prices and the level of domestic price caps.

A broader assessment of system reliability found that while the reliability standard was not breached across the 2021–22 financial year period, reliability in the NEM may be more challenging to manage in the future than it has been in the past.

The Reliability Panel has also confirmed that new investment will be important for reliability in the NEM in the medium-term, particularly if there is an acceleration in the rate of thermal generator retirements.

On security, the Reliability Panel observed improvements relating to frequency performance, a reduction in the use of directions and a decrease in system-restart ancillary services (SRAS) costs during the period being reviewed.

Areas to be addressed included voltage oscillations continuing in the West Murray Zone, the number of protection mal-operation reviewable operating incidents and the amount of load under the control of frequency relays, which are below levels anticipated in the National Electricity Rules (NER).

No safety issues were identified as a result of the management of the power system.

While formal stakeholder submissions are not being sought, the Reliability Panel welcomes comments on its approach and on issues to be considered as part its Annual Market Performance Review process.

The Annual Market Performance Review is carried out by the Reliability Panel in accordance with the requirements under the NER and the standing Terms of Reference issued by the AEMC.

Visit project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

Call for nominations from Generators for Reliability Panel representative

14 March 2023

Registered Generators are encouraged to submit their nominations for a new member to represent their Registered Participant Class on the Australian Energy Market Commission’s Reliability Panel.

The Reliability Panel plays a key role in supporting a safe, secure and reliable national electricity system and is responsible for recommending the reliability standard and market settings, such as the market price cap.

The Panel also establishes technical standards and guidelines in line with the National Electricity Rules, including the frequency operating standard.

The Panel is chaired by AEMC Commissioner Charles Popple and includes a range of market participants from consumer groups, generators, network businesses, developers of new technology, retailers and the Australian Energy Market Operator.

The current representative for Generators will serve until 30 May 2023. Any executive-level employee who works for a Registered Generator is eligible and may put themselves forward to represent the Generator class.

A Generator representative will be appointed for a term of three years, commencing mid-2023. Submissions for nominations will close 5pm AEDT, 28 March 2023.

The AEMC is required under the National Electricity Rules (clause 8.8.2) to appoint a Generator representative that has the support of at least one third of Registered Generators.

Generators have been directly notified of the opportunity to submit a nomination and Registered Generators will be asked to vote on proposed candidates.

To find out more, please contact Victoria Mollard, Executive General Manager – Economics and System Security (02) 8296 7872 or victoria.mollard@aemc.gov.au or visit our Reliability Panel page.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

Reliability Panel commences Annual Market Performance Review

02 February 2023

The Australian Energy Market Commission’s (AEMC) Reliability Panel has commenced work on its Annual Market Performance Review of the National Electricity Market (NEM) for the 2022 financial year period.

The review will include an assessment of the performance of the power system against reliability, security and safety measures, providing information, insights and analysis in one place for energy market participants to access.

The review also provides an opportunity to take learnings from events that have occurred in the NEM over the reporting period, such as the June 2022 market suspension event.

Information for the review is drawn from a number of sources, including reporting data from the Australian Energy Market Operator (AEMO), the Australian Energy Regulator, jurisdictional regulators and other market participants.

While formal stakeholder submissions are not being sought, the Panel welcomes comments on its approach and on issues to be considered by the Panel.

The review is carried out under standing Terms of Reference issued by the AEMC. The Panel expects to publish the review in late March.

Read more about the Annual Market Performance Review.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

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