Market Reviews: Open

Reliability Frameworks Review

Reference:
EPR0060
Reviewed by:
AEMC
Initiated by:
AEMC
Date initiated:
11-Jul-2017
Project Leader:
Sarah-Jane Derby
Overview

The Australian Energy Market Commission (AEMC) has initiated a review into the market frameworks necessary to support the reliability of the electricity system.

The Australian Energy Market Commission (AEMC) has initiated a review into the market frameworks necessary to support the reliability of the electricity system.

The focus of the review is on the investment and retirement decisions made by market participants to result in an adequate amount of dispatchable energy in the National Electricity Market (NEM). This includes both generation and demand-side sources of energy. The review will consider whether changes are required to the regulatory and market frameworks to make sure that the existing high performance relating to reliability in the NEM continues to occur, even as the electricity system transforms to have higher penetration of variable intermittent generation, and a larger presence from demand-side resources, including demand response.

The AEMC is self-initiating this review under Section 45 of the National Electricity Law and has published terms of reference. The review will be coordinated with ongoing work on these and related issues being undertaken by the Australian Energy Market Operator (AEMO), the Reliability Panel and the Australian Energy Regulator (AER).

The review will examine the existing reliability frameworks, and recommend changes in order to make sure it is flexible and resilient for the future. Recommendations may include proposed refinements to existing reliability reserve and intervention mechanisms as well as the introduction of other, complementary mechanisms to support reliability in the NEM.

The review will incorporate and be informed by any existing work or recommendations made on the subject matter of this review, including any recommendations from the Finkel Panel. It will also take into account key learnings from existing initiatives such as the Australian Renewable Energy Agency (ARENA)-AEMO demand response trial, and any other trials that ARENA and AEMO may undertake that are relevant to reliability.

The output of the review will be reports to the COAG Energy Council highlighting actions taken including, where relevant, rule changes and technical changes made and recommendations for further action where required. 

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Documentation

AEMC Documents