New AEMC rule to prevent power outages

Wednesday, 26 February, 2020

New AEMC rule to prevent power outages

Better information about potential electricity shortfalls will now be available for power system businesses, following the release of new rules by AEMC.

The new AEMC final determination will give generators and demand response providers more information ahead of time about potential shortfalls and forecasted needs in the power system. This will help avoid blackouts as generators can better schedule their maintenance outside of peak times.

The change also helps implement the national retailer reliability obligation (RRO), which has underpinned the reliability of the national electricity market since 1 July 2019. The RRO makes electricity retailers contract with generators or ‘on demand’ resources to cover projected supply shortfalls.

The rule provides greater transparency around AEMO reliability assessments over the medium term of two years. It also includes extending from two to three years, the period for which generation availability is published.

The determination relates to MT PASA (medium-term projected assessment of system adequacy), which is carried out by the Australian Energy Market Operator (AEMO) to assess whether or not electricity supply is expected to meet demand.

Acting AEMC CE Suzanne Falvi said the changes would give the market more granular detail on generation reliability and availability ahead of time, giving generators and demand response providers more opportunity to respond and fill a projected gap in power supply at a lower cost to consumers.

“This work is part of the AEMC’s system security and reliability action plan,” Falvi said.

“Increasing the accuracy and transparency of information in the market helps the market operate more efficiently. It will result in AEMO procuring emergency reserves more effectively and give energy suppliers the information they need to get on with the job. All of this will help lower the costs consumers see on their energy bill, and this remains a key focus for the AEMC in 2020.”

Image credit: ©urbans78/Dollar Photo Club

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