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Reliability Panel

News Topic ID
17

The AEMC welcomes appointments to the Reliability Panel

25 January 2023

The Australian Energy Market Commission is pleased to announce the appointment of Origin Energy’s Keith Robertson as the Market Customers representative to the Reliability Panel.  

Mr Robertson returns to the role as the Reliability Panel's Market Customer representative following a robust selection and voting process. 

Mr Robertson has more than 20 years' experience in the energy sector and has held senior positions in strategy and development, energy trading and sales and marketing. He is currently General Manager Wholesale Risk and DER at Origin Energy. 

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. 

Draft determination for frequency operating standard

08 December 2022

The Australian Energy Market Commission (AEMC)’s Reliability Panel has made a draft determination that would see updates to the frequency operating standard (FOS) for a more secure and resilient power system for energy customers in the future.

The FOS defines the allowable range of frequency under different conditions and stable operation of the power system requires that frequency be maintained close to the 50Hz target. When generation is equal to demand, the frequency will be stable. However, when there is a mismatch between the demand for and supply of electricity, system frequency will diverge from 50Hz.

Power system equipment, including generators, may disconnect from the power system if the system frequency becomes unstable and changes too quickly, or varies too far from 50Hz, which can in the worst case, eventuate in the collapse of all or part of the power system.

As lower cost, variable inverter-based generation such as batteries, wind and solar displace thermal generators in the system, maintaining stable frequency and operation in the power system is becoming increasingly important.

The draft FOS released by the Panel includes additions and amendments to support power system security and deliver reduced costs for customers in the longer-term. 

The proposed amendments to the FOS include:

  • updated settings for contingency events, including limits on the rate of change of frequency (RoCoF) and the extension of the 144MW Tasmanian generation event limit to also include network and load events
  • confirmation of the allowable ranges for frequency during normal operation, confirmation of the primary frequency control band (PFCB) consistent with the current setting in the Rules and clarification that the target frequency in the national electricity market (NEM) is 50Hz
  • the removal of the limit for accumulated time error, while maintaining an obligation on AEMO to monitor and report on time error accumulation.

The proposed RoCoF limits in the draft FOS would formalise AEMO’s existing operational practices in light of reducing levels of system inertia, helping to manage the risks of contingency events, such as the failure of network infrastructure.

These arrangements would have flow-on benefits, promoting the timely investment of the services, such as synchronous and synthetic inertia, needed to help manage RoCoF after a contingency event. 

They will also support the implementation of new fast frequency response market ancillary services that can be provided by inverter-based technologies such as wind, solar PV, battery and demand-side resources.

The Panel’s determination to confirm the current PFCB settings in the FOS reflects advice from AEMO and GHD that controlling frequency closer to 50Hz delivers value to customers by reducing costs and increasing power system security and resilience. 

The proposed PFCB settings build on the AEMC’s recent rule change to establish a framework to incentivise market participants with frequency performance payments, which comes into full effect on 8 June 2025.

The improved frequency performance also provides a solid foundation to help manage risks to system security as the NEM continues to decarbonise.

The Panel will hold a public forum for the Review of the frequency operating standard on Thursday 15 December between 9:30 am and 11:30 am (AEDT). 

Market participants can register their interest by COB Monday 12 December 2022.

Visit the project page for more information, contact details and details on making a submission. 

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

Market Customers to vote for their Reliability Panel representative

17 November 2022

Registered Market Customers now have the chance to vote for their preferred nominee to represent their Registered Participant Class on the Australian Energy Market Commission’s Reliability Panel.  

The Reliability Panel is responsible for monitoring, reviewing and reporting on the safety, security and reliability of the national electricity system, and for setting a number of technical standards and guidelines in line with the National Electricity Rules.  

A range of participants form the Panel’s membership including consumer groups, generators, network businesses, developers of new technology, retailers and the Australian Energy Market Operator. 

The AEMC called on Registered Market Customers to submit nominations for the Panel in October, resulting in the two nominees being voted on.  

A Market Customer representative will be formally appointed for a term of up to three years, commencing at the conclusion of the current term. 

Market Customers have been directly notified of the opportunity to vote for the Market Customers’ representative to the Reliability Panel.  

Nominees are required to secure the votes of at least one third of the relevant class of registered participants (clause 8.8.2) - in this case Registered Market Customers - in the National Electricity Market, to be appointed to the Panel.  

Voting will close 5pm AEDT, 23 November 2022. 

The Panel is chaired by AEMC Commissioner Charles Popple.  

To find out more, or if you did not receive a voting form, please contact Victoria Mollard, Executive General Manager – Economics and System Security (02) 8296 7872 or victoria.mollard@aemc.gov.au. 

Read more about the Reliability Panel.

The AEMC welcomes a new member to the Reliability Panel

13 October 2022

The AEMC is pleased to announce the appointment of a new representative to the Reliability Panel. 

The Commission has appointed the Australian Renewable Energy Agency (ARENA)’s Rachele Williams as the discretionary representative on the Reliability Panel, following consultation with a range of DER, demand response and new business models (‘innovators’) organisations. Ms Williams has been appointed to replace the outgoing discretionary representative, Gabrielle Kuiper.  

The Commission wishes to thank Ms Kuiper for her significant and valued contributions to the Panel over the last year.   

Incoming Panel member Rachele Williams has over 20 years of experience in the energy sector and is currently the General Manager of Project Delivery at ARENA. Ms Williams is Head of ARENA’s Distributed Energy Integration Program which is aimed at maximising the value of consumer energy resources (CER) for all energy users. 

Ms Williams specialises in innovation and has extensive experience in emerging technology and has worked on fuel cell, small-scale wind turbines, distributed energy and storage projects. 

For information on the current Panel Members see here: https://www.aemc.gov.au/about-us/reliability-panel/panel-members

 

Reviewable operating incident guidelines - draft report

30 June 2022

The Reliability Panel’s draft report of the 2022 Review of the guidelines for identifying reviewable operating incidents is now available for comment. 

The Australian Energy Market Operator (AEMO) uses the guidelines to determine when a power system security incident is considered a 'reviewable operating incident'. Reviewable operating incidents are sufficiently serious as to be ‘significant’ events on the power system, affecting system security. AEMO is required to investigate and publicly report on these incidents. 

The review follows an AEMO request proposing five changes to the guidelines. The proposed changes seek to improve the efficiency of the guidelines, reduce costs imposed on participants and ensure AEMO only undertakes necessary reviews.

The panel’s review considers AEMO’s requested changes along with additional items that were identified as relevant, including managing changes made to NER frameworks since the guidelines were last reviewed. 

The draft report sets out changes to the guideline aimed at increasing the efficiency of the guidelines, ensuring only necessary reviews are undertaken and participant costs are minimised. 

In addition to feedback on its proposed changes, the panel seeks stakeholder input on other areas before coming to a position. These are:

  • limiting AEMO's reporting on non-secure or non-satisfactory operation of the power system to times where critical transmission elements are affected
  • how the guidelines will manage interactions with the Enhancing operational resilience in relation to indistinct events rule – particularly the changes made in this rule to the definition of contingency event, which now includes sudden and unplanned changes to the power flow of a plant. 

Stakeholder submissions are open until 28 July with the final report and amended guidelines to be published 29 September. 


Visit the project page for more information and contact details.
 

Publication of the 2022 RSS review Draft Report

09 June 2022

The Reliability Panel (The Panel) has released a draft report into its review of the reliability standard and market settings (2022 RSS review) for the national electricity market.

The 2022 RSS review considers 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 draft report sets out a number of Panel positions and observations, rather than specific recommendations, for the reliability standard and settings needed between the period of 1 July 2025 to 30 June 2028.  

The Panel will consider the views of stakeholders on the review’s comprehensive modelling work. The Panel will seek that input before making its final set of recommendations. 

The draft report positions are:

Reliability standard 

  • The Panel has not made specific recommendations for the form and level of the reliability standard at this stage of the review.  The reliability standard is based on expected unserved energy in a national electricity market region and set at a level that balances delivering reliable electricity supplies and maintaining reasonable costs for customers. 
  • The Panel considers that due to the energy transition and the growth of variable renewables, there may be a case to change the way the reliability standard is applied and to capture more information about future reliability risks. 
  • The Panel notes the modelling work reveals there may not be a need to change the existing level of the reliability standard for the period of 1 July 2025 to 30 July 2028. The current level is 0.002% unserved energy in a NEM region in a financial year.

Reliability settings 

Market Price Cap and Cumulative Price Threshold

  • The Panel has not formed a view on the specific level of the two reliability price settings, the market price cap, and the cumulative price threshold. Together, these price settings should be sufficient to support investment outcomes, consistent with the reliability standard, while also limiting potential systemic financial risks.
  • The modelling for the review has identified a range of possible combinations that could apply to these market price settings. The Panel is seeking stakeholder input on the modelling outcomes to inform its final recommendation and one that is appropriate for all regions of the NEM. 
  • The IES modelling shows that a range for the market price cap of around $21,000/MWh to $29,000/MWh and a corresponding CPT of $1,359,100 (corresponding to 7.5 hours at the existing MPC) and $4,176,000 (corresponding to 12 hours at a maximum MPC of 29,000/MWh). The existing market price cap is $15,100/MWh. 

Administered Price Cap

  • The Panel’s initial consideration is that the level and form of the APC at $300/MWh may remain appropriate for the period 1 July 2025 to 30 June 2028. The Panel is seeking stakeholder feedback between the draft and final reports to inform further consideration of the APC given recent increases in fuel costs. The existing Administered Price Cap is $300/MWh.

Market Floor Price 

  • The Panel is proposing to retain the existing level and form of the Market Floor Price. The market floor price is -$1,000/MWh. Current analysis suggests there is no sufficient material reason to change it for the review period.  

The review is being undertaken in the context of the existing energy-only market design. The merits and design of a capacity mechanism are not in scope for the RSS review and are a matter for the Energy Security Board (ESB). The Panel is collaborating with the ESB during all stages of the review to ensure all processes and solutions are appropriately aligned and don’t introduce unnecessary duplication. 

The Panel invites stakeholders to engage with the Panel and provide feedback before it publishes its final report on 1 September 2022. 

Submissions to the reliability standard and settings review are open until 7 July 2022. Visit the 2022 Reliability standard and settings review for more information and contact details.
 

Forum: Review of the frequency operating standard - May 2022

12 May 2022

The Reliability Panel will be holding a public forum for the 2022 Review of the Frequency operating standard on Friday 27 May between 9.30am and 11.30am (AEST). The issues paper and terms of reference have been published and stakeholders are encouraged to provide input. 

The FOS defines the range of allowable frequency for the power system under different conditions, including normal operation as well as after events that occur that can impact the power system.  

The review will examine the appropriateness of the settings in light of the ongoing energy market transformation, as conventional synchronous generation is progressively replaced by inverter-based technologies such as wind, solar and batteries.  

The Panel published an issues paper on 28 April 2022 and now seeks stakeholder input via a public forum.  

The agenda will encompass:  

  • An overview of the scope and objectives for the 2022 FOS review, including the key issues for consideration. 
  • A presentation by the Australian Energy Council (AEC) on industry views with respect to the review of the FOS 
  • A presentation by AEMO on their proposed approach to the provision of technical advice to the Panel. 
  • Opportunities for stakeholder Q&A. 

Please register your interest by COB Tuesday 24 May 2022. 

For information please contact:  

Project lead: ben.hiron@aemc.gov.au  
Project sponsor: sebastien.henry@aemc.gov.au 

Visit the project page for more information and contact details. 

The Reliability Panel releases 2021 annual market performance update

16 December 2021

The Reliability Panel has released the 2021 Annual market performance update which forms part of the Annual market performance review. The market update provides initial insights and analysis on the reliability, security and safety of the power system over the period from 1 July 2020 to 30 June 2021.

Key findings of the 2020-21 financial year market update include:

  • There were some challenges relating to reliability, but these were largely managed to date by the reliability frameworks.
  • Trends in lower minimum system loads and associated market price floor events are emerging as an issue, particularly in South Australia and Queensland.
  • The trend toward increasing complexity around managing power system security continued.

The annual review will continue to cover these and other important issues as they emerge and will be published in 2022.

Visit the Annual market performance review page for more information and contact details.
 

The AEMC welcomes three new members to the Reliability Panel

28 October 2021

The AEMC is pleased to announce the appointment of a new distributed network service provider (DNSP) representative and two new discretionary representatives to the Reliability Panel.

The Commission has appointed Peter Price as the DNSP representative on the Reliability Panel. Peter has been appointed to replace David Salisbury who resigned ahead of his move back to the United Kingdom. The Commission thanks David for his contribution to the panel over the last year.

Dr Gabrielle Kuiper and Melissa Perrow have been appointed as discretionary members to the panel. Gabrielle has taken up a vacant position and Melissa has been appointed following the expiry of Kathy Danaher’s term representing large energy users. The Commission would also like to thank Kathy for her contribution to the panel over the past three years.

Panel member bios

DNSP Representative

Incoming panel member Peter Price is the Head of Corporate Strategy and Executive General Manager Asset Safety and Performance at Energy Queensland. Peter is responsible for leading Energy Queensland’s engineering and asset management strategies, which includes the safe and efficient management of the Group’s electricity distribution networks.

Prior to joining Energy Queensland, Peter was a member of Energex’s executive management team for ten years. His career with Energex included managing and leading capital planning and program delivery, asset management, procurement, regulatory issues, and the growth of new commercial businesses. 

Discretionary representatives

Dr Gabrielle Kuiper has been appointed to represent distributed energy resources, demand response and new business models as a discretionary representative to the Panel. She is a DER Specialist and a Guest Contributor at the Institute for Energy Economics and Financial Analysis (IEEFA).

Gabrielle is an energy, sustainability and climate change professional with over twenty years’ experience in the corporate world, government and non-government organisations and academia. She was previously the DER Strategy Specialist with the Energy Security Board. Prior to that Gabrielle held senior executive or senior advisory energy-related positions in the Office of the Australian Prime Minister, at the Public Interest Advocacy Centre (PIAC) and in the NSW Government.

Melissa Perrow has been appointed as a discretionary representative to the Panel for large energy users.

Melissa is the General Manager Energy at Brickworks Limited. She is responsible for managing the energy needs as a large user of electricity and gas. Melissa has 20 years of wholesale energy trading experience gained across electricity, gas, carbon and green markets having previously worked for Origin Energy and AGL. She holds a Bachelor in Applied Science, a Bachelor of Business, a Graduate Diploma in Technology and a Post Graduate Certificate in Applied Finance.

 

Media enquiries: media@aemc.gov.au

Annual Market Performance Review assesses how market is adapting to change

20 May 2021

The latest report from the AEMC’s Reliability Panel shows that over the past year the market had the tools it needed to keep energy supply secure and reliable. But it signalled the importance of planning now for the transition underway – such as extreme weather events and a changing generation mix.

The final 2020 Annual Market Performance Review report examines the reliability, security and safety of the national electricity market (NEM) from July 2019 to June 2020.

It looks at performance as Australia’s power system is transitioning through a rapidly changing environment. Changes to the power generation mix and market dynamics, severe weather events, and other global disruptions are happening at an increasing pace that is likely to continue over the next two decades.

Key findings from 2019-20:

  • The  reliability performance of the market was satisfactory and the existing regulatory framework provided the tools needed to manage reliable supply. However, high peak demand and extreme environmental events such as bushfires and storms posed operational challenges. Future work should incorporate what was learned during the year in order to develop effective arrangements to preserve the reliability and security of energy.
  • Changes to Australia’s mix of power generation sources are changing market dynamics by creating more variability in the system. The Panel noted that this variability is presenting challenges for forecasting and operation of the power system, such as times of tight supply demand balance in shoulder periods. The effects include low wholesale prices during hours of peak supply from variable renewable sources, such as solar. As prices fall, traditional thermal generators may operate less often.
  • The rapid uptake of distributed energy resources, such as rooftop solar, is creating challenges in managing key elements of system security, including minimum system load, system strength, inertia and voltage control. The Panel noted this trend also complicates the operator’s task of forecasting supply and demand in the power system. These issues are not new but their impact on the system operator and networks is increasing at a rate that is faster than expected.

The Panel recognises that there are reforms currently underway that aim to address the above findings of present and future reliability and system security issues, including the AEMC system security work program, as well as the ESB post-2025 market review.

The Panel will continue to assess and monitor system security as part of its future work, including 2021 Reliability Standard and Settings review, and will continue to work closely with the relevant bodies to influence the direction of this work.

The final report of the Annual Market Performance Review is designed to:

  • Provide stakeholders with consolidated information and expert commentary about the reliability, security and safety performance of the power system and market in a single publication
  • Highlight emerging trends to help inform the policy and investment decisions of governments, policymakers, market institutions and market participants
  • Identify areas for attention related to the frameworks or mechanisms used to deliver reliability, security and safety.

The report also aims to help stakeholders provide informed input into current issues and reforms that are underway related to reliability and security of the NEM so that discussion can lead to effective solutions to emerging power system issues.

The Panel is chaired by AEMC Commissioner, Charles Popple. Its members are broadly representative of all stakeholders interested in the operation of the power system and the electricity market including consumer groups, generator, network service providers, retailers and the power system and market operator

The value of the report comes from this diverse membership’s capacity to bring together all the relevant information into an accessible format and provide a collated view of what is happening in the power system.

Media: Kellie Bisset 0438 490 041
 

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