Market Review: Completed
The Reliability Panel’s 2022 Annual Market Performance Review (AMPR) provides observations and commentary on the reliability, security, and safety performance of the power system across the 2021–22 financial year.
Final report observations
This year’s market performance review shows that during the reporting period the system maintained high levels of reliability, security and safety in the face of exceptionally challenging circumstances.
Key events: June 2022
The Administered Price Period (APP) and market suspension event that occurred between 12 June 2022 and 24 June 2022 was an extreme event and point to a confluence of planned and unplanned thermal outages, low variable renewable energy generation periods, high customer demand, high commodity prices and the level of domestic price caps.
The Panel notes:
- the efforts of AEMO working with others in the market to ensure customers maintained a reliable supply despite the extreme circumstances
- these events illustrate a changing set of reliability and security risks to be managed as the power system continues to transition.
The Panel's assessment in this AMPR indicates that reliability in the NEM will be more challenging in the future than it has been in the past or is currently. The Panel notes:
- the reliability standard was not breached during this review period and is not expected to breach in the near-term
- medium to long-term reliability, however, faces additional challenges
- future reliability will rely on significant levels of new investment to address already announced closures and appropriate investment signals to incentivise the right mix of power system resources.
The Panel observed improvements in security relating to:
- frequency performance following the introduction of mandatory primary frequency response
- a reduction in the use of directions in South Australia following the commissioning of the four synchronous condensers
- a decrease in system restart ancillary services costs as a result of the merger of the two Queensland sub-regions.
However, there are emerging areas of concern in particular:
- voltage oscillations continuing in the West Murray Zone
- the sustained number of protection mal-operation reviewable operating incidents
- the amount of load under the control of under-frequency relays are below the levels anticipated in the NER.
The Panel notes that for 2021–22 there were no incidents where AEMO’s management of power system security resulted in a safety issue and no instances where AEMO issued a direction and the directed participant did not comply on the grounds that complying with the direction would be a hazard to public safety, or materially risk damaging equipment or contravene any other law.
The AMPR provides an assessment of reliability and security outcomes relevant to a NEM undergoing rapid transition, exemplified by significant market events, in particular the June 2022 market suspension, which occurred in the reporting period.
The report compiles information collected from a number of sources including the Australian Energy Market Operator, the Australian Energy Regulator, and market participants.
The purpose of the review final report is to:
- consider specific events that have occurred in the NEM over the reporting period
- assess the performance of the power system against various reliability, security, and safety measures
- consolidate key information related to the performance of the power system and present observations and commentary in a single publication for the purpose of informing stakeholders.
About the Reliability Panel
The Reliability Panel’s core functions relate to the security, reliability, and safety of the national electricity system. The focus of the Panel’s work is on determining standards and guidelines which are part of the framework for maintaining a secure and reliable power system.
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, generators, network service providers, retailers and the power system and market operator.
Key dates for this review
- Review initiated: 2 February 2023
- Explanatory statement publication: 30 March 2023
- Final report publication: 30 March 2023