On 21 February 2013, the Reliability Panel (Panel) published its final report on the Energy Adequacy Assessment Projection (EAAP) review.  The Panel considered that the EAAP provided benefits to the market and to stakeholders while imposing minimal ongoing costs.  The Panel found the existing EAAP arrangements under the National Electricity Rules (NER) were operating well and, as such, no changes to the EAAP arrangements were recommended (other than a minor change to update a cross-reference).  The Panel’s findings as set out in the final report are consistent with those in the draft report for this review.

Background

The EAAP is an information mechanism that provides analysis on the impact of energy constraints in the National Electricity Market (NEM). The Australian Energy Market Operator (AEMO) publishes the EAAP on a three-monthly basis.  Under the National Electricity Rules (NER), the Reliability Panel is required to undertake a review of the EAAP provisions.

The requirements for AEMO to publish the EAAP were introduced through a rule change request submitted to the AEMC in 2008.  The provisions for the EAAP were considered by the Panel under the Comprehensive Reliability Review and were based on the drought reports being published by AEMO (NEMMCO at the time)

The EAAP examines a two year outlook of the ability of generation in the NEM to meet demand in the presence of generator energy constraints.  The EAAP operates in a similar manner to the capacity projection assessments of the medium term Projected Assessment of System Adequacy (MT PASA) however the EAAP considers energy instead of capacity constraints.

AEMO is responsible for preparing and publishing the EAAP based on provisions under the NER.  AEMO is also required to establish a set of guidelines to assist with the administration of the EAAP.  These guidelines were developed and published by AEMO in 2009.

In July 2012, the AEMC provided the Panel with terms of reference to undertake a review of the EAAP in accordance with the NER. 

The Panel published an issues paper to initiate the review on 30 August 2012 and submissions were due by 28 September 2012.  Three submissions were received.

The Panel published its draft report for this review in November 2012.  In preparing the draft report the Panel took into consideration the issues raised in submissions on the issues paper.  With the exception of making a minor cross-referencing update, the Panel’s findings are to maintain the existing provisions for the EAAP under the National Electricity Rules.  This includes maintaining the current three-monthly reporting requirement for the EAAP.  Submissions on the draft report close on 21 December 2012.