Consultation on Automation of Negative Residue Management for the implementation of transmission loops

Timeline

Key contact

Email: NEMReform@aemo.com.au

Matters under consultation

This consultation paper commences the first stage of the standard rules consultation process conducted by AEMO to amend the Automation of Negative Residue Management document to include a process that is appropriate for transmission loops (proposal) in preparation for the inclusion of the Project EnergyConnect (PEC) interconnector in AEMO’s dispatch processes. Negative residue management (NRM) is the process used by AEMO to manage negative settlements residue and is applied under National Electricity Rules (NER) 3.8.1(b)(11).

At this stage PEC is due to be completed by October 2026, with inter-network testing due to commence in late 2026. From early next year AEMO will begin work towards implementation of PEC as a transmission loop in dispatch processes, in preparation for October 2026.

The current AEMC rule change Inter-regional settlement residue arrangements for transmission loops is focused on allocation of negative settlement residues. The AEMC confirmed in their Draft Determination their intention to support AEMO’s approach to clamping in transmission loops where counter-price flows would only be clamped if the net inter-regional settlement residues (IRSR) for the loop is negative. Therefore, this consultation is focused on the process of managing these negative IRSR around the loop. Note that the threshold for NRM (currently set at -$100,000) does not form part of the scope of this consultation.