Rule Change: Open

Overview

On 21 August 2021, the AEMC extended the date of the final determination to 21 October 2021 to consider this information.
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On 21 August 2021, the AEMC extended the date of the final determination to 21 October 2021 to consider this information.

AEMC’s draft determination

On 24 June 2021, the Commission made a draft decision not to require generators sized between 5 and 30MW to be scheduled. However, it has made a draft rule to increase the transparency of the Australian Energy Market Operator’s (AEMO) registration, classification and exemption processes.  

Scheduling threshold

While the Commission agrees that the changing generation mix is creating challenges for AEMO’s efficient management of the power system, and that these challenges may increase in the future, the Commission’s draft determination is to make no rule regarding the scheduling threshold. There is insufficient evidence that non-scheduled generators between 5MW and 30MW are contributing to inaccuracies in scheduling and forecasting. Further, the costs of scheduling these smaller generators between 5MW and 30MW are material and therefore likely outweigh the benefits. 

The Commission recognises that market trends might lead to smaller scale assets causing operational issues in the dispatch and forecasting process in the future. However, the ESB’s Post 2025 market design ‘scheduled lite’ work program is a potential way to provide AEMO with greater visibility of non-scheduled resources, including generators between 5MW and 30MW nameplate capacity. 

Registration, classification and exemption process

The more preferable draft rule addresses concerns raised by both rule change proponents and stakeholders. In summary the draft rules:

  • formalise AEMO’s current practice of publishing guidelines on registration, classification and exemption processes for generators but extends them to include all registered participant categories. 
  • require AEMO to consult with stakeholders on amendments to the registration guidelines that are not minor or administrative in nature 
  • clarify that the connection process and the application of generator technical performance standards are tied to the standing exemption from registration specified in the Registration guidelines 
  • narrows the grounds upon which a generator can be exempt from scheduling obligations clarify that groups of generating units behind a common connection point must be less than 30MW to be classified as non-scheduled for system security reasons.

Stakeholders are invited to provide written feedback on the draft determination and rule by 19 August 2021.

Rule change request

The AEC's rule change request proposed to:

  • Reduce the threshold for classifying generators as non-scheduled from 30MW nameplate capacity to 5MW, making the default classifications for generators above 5MW scheduled (or semi-scheduled).
  • Narrow the grounds upon which generators can be exempt from scheduling obligations. 
  • Require AEMO to publish its reasons for exempting a person from the requirement to register as a generator, or for classifying a generating unit as non-scheduled.

Mr Damien Vermeer proposed to amend the NER to minimise uncertainty in the registration and connection process for embedded generators. 

  • Mr Vermeer proposed a conditional exemption from registration for embedded generators with a nameplate capacity between 5-30MW. 
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Documentation