The Australian Energy Market Commission has started consultation on a rule change request from the Australian Energy Market Operator (AEMO). The rule change proposal seeks to reduce the frequency of Energy Adequacy Assessment Projection (EAAP) reporting while maintaining the ability to issue an EAAP when it is necessary.

The EAAP is an information mechanism that provides the market with a two-year outlook on the effect of energy constraints in the National Electricity Market (NEM). Energy constraints refer to fuel shortages or constraints that limit the ability to use a generator, such as access to water for cooling or for hydro generation.

The NER require AEMO to prepare and publish an EAAP every three months using, among other inputs, information supplied by scheduled generators via the Generator Energy Limitation Framework (GELF).

AEMO considers that the EAAP is still valuable as a centralised assessment of energy constraints that could impact energy availability. However reporting too frequently creates administrative burden and costs for AEMO and generators, which could potentially exceed the value of the information produced. Reporting too infrequently potentially increases the risk of not identifying energy constraints in a timely basis.

The AEMC will assess this rule change request as a non-controversial rule under an expedited process, subject to the receipt of any written objections from stakeholders by 7 April 2016.

A consultation paper has been prepared to facilitate public consultation on the rule change proposal and to seek stakeholder submissions.

Stakeholders are invited to make submissions on this rule change proposal by Thursday 21 April 2016.

Media contact: Prudence Anderson 0404 821 935 or (02) 8296 7817