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Reserve Capacity Mechanism
The Reserve Capacity Mechanism (RCM) ensures that there is sufficient generation capacity in the SWIS by:
- setting a Reserve Capacity Requirement two years ahead, published in the Electricity Statement of Opportunities;
- allocating Certified Reserve Capacity and Capacity Credits based on a Facility's technical capability;
- running a Reserve Capacity Auction if insufficient Capacity Credits have been allocated through the Bilateral Trade Declaration process;
- testing Facilities to ensure they are meeting their obligations; and
- assigning an Individual Reserve Capacity Requirement to each Market Customer, based on contributions to the system peak, to allocate the cost of Capacity Credits fairly among Market Customers.
A Capacity Year in the SWIS is between 1 October and 1 October the following calendar year, to ensure that capacity is available during the peak demand period running from October to March.
The RCM processes are separate from the energy market. These steps are shown in the flow chart below.
Reserve Capacity Timetable
The Reserve Capacity Timetable shows the key dates for various milestones in the RCM. This timetable will help Market Participants to keep track of important dates and their obligations under the RCM. The current Reserve Capacity Timetable can be found here.
AEMO runs training courses on the RCM. Click here to find out more.
Questions relating to the RCM should be directed to:
Group Manager, Development and Capacity
PO Box 7096
Cloisters Square, Perth, WA 6850
Phone: (08) 9254 4300
Fax: (08) 9254 4399