Rule Change: Open
On 19 November 2019, Hydro Tasmania submitted a rule change request to amend the National Electricity Rules to create a market for “synchronous services". These synchronous services include inertia, voltage control and fault level/system strength.
Hydro Tasmania proposed to address the shortage of “inertia and related services” in the national electricity market (NEM) by integrating the dispatch of a “synchronous services” with the existing energy and FCAS spot markets.
Hydro Tasmania proposed to do this by changing the formulation of the constraints that are applied to the NEM dispatch engine (NEMDE). Hydro Tasmania proposed that these reformulated constraints would allow the dispatch engine to find the lowest overall cost combination of synchronous services and non-synchronous generation. This in turn is expected to deliver lowest overall costs for consumers.
Hydro Tasmania’s rule change is one of seven rule change requests the AEMC was consulted on through the System services consultation paper (the consultation paper). Submissions to the consultation paper were due on 13 August 2020 and can be found below.
The Hydro Tasmania (ERC0290) rule change has received three extensions under s. 107 of the NEL. On 17 June 2021, the Commission extended the timeframe to make a draft determination until 16 December 2021.
The issues raised in the Hydro Tasmania rule change request are complicated and require more time to examine, consider and address. The extension will allow the AEMC the time to fully consider the implications of various policy options while effectively collaborating with other market bodies and stakeholders.
The additional time will allow the AEMC to coordinate with interrelated rule change requests that influence aspects of policy design (e.g. Capacity Commitment Mechanism - ERC0306, and Efficient management of system strength on the power system - ERC0300), as well as the wider ESB post 2025 work program.
A joint policy directions paper for both the Synchronous Services Market (ERC0290) and Capacity Commitment Mechanism (ERC0306) rule change requests will be published 2 September 2021.
Other relevant system services rule change processes underway
The AEMC has seven rule change requests relating to the provision of system services that it is currently assessing. Collectively, the AEMC refers to these rule requests as the “system services” rule change requests.
These system services rule change requests complement and are interdependent with the work of the Energy Security Board (ESB) to develop advice on a long-term, fit-for-purpose market framework to support reliability that could apply from the mid-2020's. The AEMC is working closely with the ESB and the other market bodies as it progresses these rule change requests.
We are considering the interactions between issues raised in the different rule changes so that any new frameworks developed in response to the rule change requests will be focused on delivering the most efficient outcomes for consumers.
More information on each of the system services rule changes can be found at the links below:
- Fast frequency response market ancillary service (Infigen Energy)
- Primary frequency response incentive arrangements (AEMO)
- Operating reserve market (Infigen Energy)
- Capacity commitment mechanism for system security and reliability services (Delta Electricity)
- Introduction of ramping services (Delta Electricity)
- Efficient management of system strength on the power system (TransGrid)
- Synchronous services markets (Hydro Tasmania)
|Consultation paper||Information sheet|
|Notice||Stakeholder submissions template|
|s107 notice – 24 September 2020||s107 notice – 9 March 2021|
|s108A notice – 17 June 2021||s107 notice – 17 June 2021|