On 11 March 2021, the AEMC published a final determination and rule to amend semi-scheduled generator dispatch obligations in response to a rule change request submitted by the Australian Energy Regulator (AER). This actions one of the ESB’s recommendations for interim security measures.

The final determination and rule addresses risks to system security and market efficiency from semi-scheduled generators curtailing generation in response to market prices without first informing the Australian Energy Market Operator (AEMO) and waiting for an updated dispatch instruction.

Final determination and rule

The final determination and rule requires semi-scheduled generators to comply with a MW dispatch level, contained in a dispatch instruction issued by AEMO, for all dispatch intervals. 

A semi-scheduled generator may vary above or below the dispatch level as a result of energy source availability except in a ‘semi-dispatch interval’ where the semi-scheduled generator must not exceed the dispatch level regardless of its energy source availability. 
    
The substantive changes in the Commission’s final rule commence on Monday 12 April 2021.

The Commission’s final determination is consistent with its draft determination and the AER’s rule change request, with 
some changes to the drafting to better implement the policy intent of the rule change. 

Draft determination and rule

On 19 November 2021, the Commission published a draft determination and rule to amend the National Electricity Rules to require semi-scheduled generators to meet a MW dispatch level (for a non semi-dispatch interval) or cap (for a semi-dispatch interval) subject to variations in energy source availability. 

The Commission invited submissions on its draft determination by 14 January 2021. Ten submissions were received. 

Background

On 24 September 2020, the AER submitted a rule change request to amend the National Electricity Rules to prevent semi-scheduled generators from adjusting their output without first informing the Australian Energy Market Operator (AEMO) and waiting to receive a revised dispatch target.

The AER’s rule change request formed part of the Energy Security Board’s interim security measures and arose out of a request from the then Council of Australian Governments (COAG) Energy Council.

On 15 October 2020, the AEMC initiated the semi-scheduled generator dispatch obligations rule change through a fast-tracked process.

The rule change request was fast-tracked as the AER consulted significantly with the public on the nature and content of the rule change request before submitting it to the Commission.

Information on the public consultation undertaken by the AER can be found at: https://www.aer.gov.au/publications/reviews/semi-scheduled-generators-proposed-rule-changes

This rule change actions one of the ESB’s recommendations for interim security measures, which aim at improving visibility of, and confidence in system security services to ensure security can be maintained while new market arrangements are developed.