Organisation Structure & Operations
AEMO’s organisational structure is built around the three streams of Corporate Services, Strategy and New Business, and Functions and Responsibilities. A total of 10 operating divisions operate under these three streams, each of which reports directly to the CEO.
AEMO’s operating structure is designed to ensure that the business develops a strong culture of collaboration and accountability that will help to ensure transparency and integrity.
Within the functional work stream the organisational structure reflects a distinction between three types of organisational roles - day to day operations, short term market development and transmission services, and long term strategic planning. These distinctions reflect the shared focus of operations within each energy market and allows for integration of common services and efficiency in engagement with multi-market participants.
Operations
The Australian Energy Market Operator (AEMO) operates the National Electricity Market (NEM) as well as the retail and wholesale gas markets of south eastern Australia.
AEMO is an independent, member based organisation working in the long-term interests of Australian consumers by ensuring that energy markets operate to balance issues of price, quality, safety, reliability and security of energy supply.
AEMO’s responsibilities include; day to day management of wholesale and retail energy market operations and emergency management protocols; on-going market development required to incorporate new rules, infrastructure and participants; and long term market planning through demand forecasting data and scenario analysis.
AEMO operates on a cost recovery basis as a corporate entity limited by guarantee under the Corporations Law. Membership is split 60/40 between government and industry, which will be reviewed in 2012. Government members of AEMO include the state governments of Queensland, New South Wales, Victoria, South Australia and Tasmania, the Australian Capital Territory and the Commonwealth. Private members include Australia’s major energy generators, wholesalers and retailers.
AEMO was established by the Council of Australian Governments (COAG) as part of policy developed by the Ministerial Council for Energy (MCE). It operates in line with National Electricity Rules and National Gas Rules under laws developed by the Australian Energy Market Commission (AEMC) and enforced by the Australian Energy Regulator (AER). Established in 2009, AEMO has amalgamated the roles of six separate organisations that formerly operated Australian electricity and gas markets (NEMMCO, VENCorp, ESIPC, REMCO, GMC and GMRO).
MARKET OPERATIONS
Day to day operation of Australian energy markets involves dynamic trading between energy generators, wholesalers and retailers based on variable pricing levels that reflect current levels of demand. AEMO maintains the systems through which prices are set and transactions carried out and provides accurate and timely market data to participants. In some markets, AEMO also acts as the clearing house for market transactions.
Market operation involves systems operation, metering and settlements, market performance reporting, incident analysis and emergency management.
AEMO currently operates data management systems developed prior to integration of market operations, and a key challenge in the years to come will be to integrate and streamline all data provision and performance reporting mechanisms, building on a single, common operating platform.
MARKET DEVELOPMENT
Each year Australian energy markets grow and evolve as demand levels change, new infrastructure is incorporated and market participants come and go. AEMO manages these short term market developments through a collaborative process designed to ensure consistent and practical application of national electricity and gas rules.
AEMO facilitates participation in market developments by obtaining and publishing input from market participants and other stakeholders in a timely way, and by administering rules and procedures set out for the operation of the Gas Bulleting Board, wholesale gas and electricity markets and retail gas markets.
As a national operation, AEMO provides opportunities for multi-sector, multi-jurisdiction market participants to pursue overall operating efficiencies through more streamlined rules and more integrated processes. Part of AEMO’s market development role is to work collaboratively with national policy makers, participants and jurisdictions to identify and develop such opportunities.
TRANSMISSION SERVICES
AEMO is responsible for overseeing the management and development of the NEM transmission and Victorian natural gas transmission systems, including emergency preparedness and transmission demand forecasting for the NEM and for the Victorian and SA gas systems.
In Victoria, AEMO manages procurement, connections and reliability services, while in SA AEMO is responsible for wind generation planning.
LONG TERM PLANNING
AEMO is responsible for the long term planning of NEM and the Victorian wholesale gas transmission systems, which are developed through a mixture of public and private infrastructure investment.
AEMO’s long term planning efforts focus on a series of annual publications in which long term demand and supply constraint forecasts are analysed to define long term development scenarios.
Electricity and Gas Statements of Opportunity (SOO) assess demand and supply side balance and review planned developments to transmission systems as a basis for existing and potential market participants to develop capital investment plans.
The National Transmission Network Development Plan (NTNDP) outlines the long term, efficient development of the electricity system, including future and current capability of the national transmission network and development options.
The Victorian Annual Planning Report (VAPR) provides forecasts for energy demand and supply in Victoria and identifies future development needs for both the electricity shared transmission network and the gas Principal Transmission System.
