Rule Changes: Open

Declaration of Lack of Reserve conditions

Reference:
ERC0226
Stage:
Consultation on request for rule change
Proponents:
AEMO
Project Leader:
Sarah-Jane Derby
Date initiated:
22-Aug-2017
Overview

The AEMC has published a consultation paper on a rule change request from AEMO in relation to the declaration of lack of reserve (LOR) conditions in the National Electricity Rules (NER). This rule change will proceed throughout the standard rule making process, but the Commission will significantly advance its consideration of the issues with the intent of having a final determination published prior to 1 January 2018.

The AEMC has published a consultation paper on a rule change request from AEMO in relation to the declaration of lack of reserve (LOR) conditions in the National Electricity Rules (NER). This rule change will proceed throughout the standard rule making process, but the Commission will significantly advance its consideration of the issues with the intent of having a final determination published prior to 1 January 2018.

Stakeholder submissions are due by 19 September2017.

Proposed rule change

On 1 August 2017, the AEMC received a rule change request from AEMO to amend the NER in relation to the definitions of LOR conditions in the NER. AEMO considers that the current definitions of LOR levels are no longer appropriate for identifying risks in the power system, and so it is seeking to replace these with a system triggered by a wider range of risks than those presently allowed for in the definitions.

Specifically, the rule change request seeks to:

  • remove the current credible contingency-based LOR definitions from the NER
  • replace these definitions with a high-level framework for, and  description of, lack of reserve within the NER
  • move the details of LOR declarations to an AEMO-maintained public guideline document which would be subject to consultation.

The LOR declaration methodology would become part of the guidelines and would use a probabilistic model, which AEMO considers would more accurately reflect risks.

Key dates for this rule change

In its rule change request, AEMO noted that it desires to have this rule in place this summer to enable the LOR framework to immediately benefit from this tool.

The Commission recognises the importance of making a final determination for this rule change request by summer. However, the nature of the proposed changes in this request is such that the Commission considers industry should have sufficient opportunity for consultation. Accordingly, the Commission is proposing to assess this rule change request through the standard timeframe, but treat it as a priority.

Given the nature of the proposed changes, the timeframes that stakeholders have to consider and respond to the matters will stay the same as those used under the standard rule making process.

The key dates for stakeholders in this process are:

  • Commencement of this rule change process: 22 August 2017
  • Submissions to the consultation paper to be received by (4 weeks): 19 September 2017
  • Publication of draft determination: 17 October 2017
  • Submissions to the draft determination to be received by (6 weeks): 28 November 2017
  • Publication of final determination: 19 December 2017
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