The Australian Energy Market Commission (AEMC) has published a consultation paper in response to an urgent rule change request from the South Australian Government that seeks a time-limited jurisdictional derogation.

The proposal would allow the Australian Energy Market Operator (AEMO) to consider procuring two mothballed generators to support reliability this summer.  

The Engie-owned Snuggery and Port Lincoln peaking plants came offline on 1 July 2024. Under the National Electricity Rules, AEMO cannot enter into scheduled reserve contracts with plants that have been available for dispatch within the last 12 months.  

The issue stems from AEMO’s 2024 Electricity Statement of Opportunities (ESOO) which forecasts reliability risks in South Australia over summer.  

Without sufficient backup electricity reserves, AEMO may need to resort to load shedding during extreme cases of reliability shortfalls. This would severely impact households and businesses, particularly if it coincides with an extreme weather event.  

The AEMC is therefore proposing to use an expedited eight-week process to assess the request to help mitigate system reliability and security risks. Stakeholders can object to the expedited process by lodging a written objection with reasons.

Visit project page for more information and contact details. 

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au