The Australian Energy Market Commission (AEMC) has released a consultation paper initiating a rule change request submitted by the Australian Energy Market Operator (AEMO). AEMO seeks to amend the National Electricity Rules (NER) clauses that address the short-term projected assessment of system adequacy (ST PASA). 

The ST PASA process is the principal method of indicating to the National Electricity Market (NEM) a forecast of power system reliability over the short term (e.g. 7 days).

AEMO proposes to move to a principles-based approach in the NER for ST PASA to provide it with more flexibility to update ST PASA over time as technology changes. AEMO has also proposed definitional changes and changes to some information publication requirements.

The proposed changes are designed to enable AEMO to more effectively incorporate variable renewable energy (VRE) generation, distributed energy resources (DER), virtual power plants (VPP) and battery energy storage systems into ST PASA. The proposed changes may also allow AEMO to more effectively deal with further technology changes in the future.

The rule change is also aligned with AEMO’s ST PASA replacement project, which is seeking to update ST PASA systems and forecasting methodologies. These proposed changes are intended to improve reliability and security outcomes.

Submissions to the consultation paper are open until 23 September 2021. The AEMC will publish a draft determination in December 2021.