AEPC_2025_02 Certification of Reserve Capacity

The Consultation Process

The consultation process is outlined below.  

Procedure Change Proposal

Electricity System and Market Rules – Clause 2.10

Date of Notice: 14 February 2025

Matter under Consultation

AEMO commenced the Procedure Change Process to propose amendments to the Certification of Reserve Capacity Procedure, as a result of the Wholesale Electricity Market Amendment (RCM Reviews Sequencing) Rules 2025 (Amending Rules).

Schedule 1 of the Amending Rules introduced a new Flexible Capacity product in time for the 2025 Reserve Capacity Cycle, to incentivise capacity that can start, stop and ramp quickly.

AEMO proposed the following amendments to the Procedure to ensure consistency with the Amending Rules:

• Amendments to outline the processes Market Participants must follow when applying for Flexible Certified Reserve Capacity.
• Amendments to outline the processes AEMO must follow when assessing applications and assigning Flexible Certified Reserve Capacity.
• Changing “Certified Reserve Capacity” to “Peak Certified Reserve Capacity” where relevant, as the definition for Certified Reserve Capacity now includes both Flexible Certified Reserve Capacity and Peak Certified Reserve Capacity.

AEMO also proposed the following minor amendments to the Procedure:

• Minor updates to Table 1, including introducing a definition for Significant Maintenance.
• Amendment to clarify the specific application requirements where major modifications are completed or intended to be completed to an existing Separately Certified Component.
• Amendment to clarify how AEMO will calculate Forced Outage rates when a Facility is not assigned Capacity Credits during the relevant period.
• Amendment to clarify how a Component or Facility Upgrade will be assessed in relation to the fuel nominated in the Certified Reserve Capacity application.

On 6 February 2025 the State Electricity Objective (SEO) replaced the Wholesale Market Objectives under section 3A of the Electricity Industry Act 2004. Following an assessment, AEMO considers the Procedure is consistent with the SEO.

Invitation to Make Submissions

AEMO invited written submissions on this Procedure Change Proposal, including any alternative or additional proposals you consider may improve the procedure or better meet the State Electricity Objective under section 3A of the Electricity Industry Act 2004.

Respondents were asked to identify any parts of their submissions that they wished to remain confidential, and explain why. AEMO noted that following consultation with a respondent, it may still publish that information if it did not consider it to be confidential.
When making a claim for confidentiality, AEMO encouraged respondents to familiarise themselves with Chapter 10 of the Wholesale Electricity Market Rules, which imposes obligations in respect to the release of documents. 

Meetings

AEMO advised that before the closing date for submissions, any person may request a meeting with AEMO to discuss the issues and proposed changes raised in the Procedure Change Proposal, stating why they consider a meeting is necessary or desirable.

AEMO noted that, if appropriate, meetings may be jointly held with other stakeholders. Subject to confidentiality restrictions, AEMO generally makes details of matters discussed at a meeting available to other stakeholders as part of the final published Procedure Change Report (or earlier, where applicable).

Closing Date and Time

Respondents were advised that submissions in response to this Procedure Change Proposal should be sent by email to WA.Marketdevelopment@aemo.com.au, to reach AEMO by 5.00 pm (AWST) on 17 March 2025.

All submissions must be in electronic format (pdf or Microsoft Word). Submissions should use the Procedure Change Submission form available on this page

AEMO is not obliged to consider submissions received after the closing date and time. Any late submissions should explain the reason for delay and the detriment to you if AEMO does not consider your submission.

Publication

All submissions were published on AEMO’s website below. Confidential information was not be published, other than as specified above.