Notifications of Facility retirements
The Minister for Energy amended the Wholesale Electricity Market (WEM) Rules on 11 February 2020 to implement changes to the Reserve Capacity Price from the 2019 Reserve Capacity Cycle. As part of these changes, a Market Participant is required to provide three years’ notice of a Facility ceasing operations permanently. AEMO must publish the details of the retirement on the Market Website. Following modifications in clause 4.4A.2. of the WEM Rules on 1 December 2022, additional information is now included in the notice including Network Access Quantity (NAQ).
AEMO considers the following notices to be notifications under clause 4.4A.1 of the WEM Rules:
- On 27 September 2024, Synergy notified AEMO that it intends to cease operations of the Facility COLLIE_G1.
- On 11 April 2022, Landfill Gas and Power Pty Ltd notified AEMO that it intends to cease operations of the Facility KALAMUNDA_SG.
- On 28 October 2021, Synergy notified AEMO that it intends to cease operations of the Facilities PPP_KCP_EG1 and PPP_KCP_IL1.
- On 26 March 2020, Synergy notified AEMO that it intends to cease operations of the Facilities MUJA_G5 and MUJA_G6.
Under clause 4.4A.1A. of the WEM Rules, a Market Participant holding Capacity Credits associated with a Demand Side Programme that does not intend to apply for any Capacity Credits in a future Reserve Capacity Cycle – subject to clause 4.4A.5 of the WEM Rules - must provide three years’ notice of the date on which it expects its Reserve Capacity Obligations to cease.
- AEMO advises that a notice of a Market Participant ceasing to intend to apply for Capacity Credits associated with a Demand Side Programme does not limit another Market Participant from applying for Capacity Credits for the capacity associated with this Demand Side Programme. AEMO considers the following notices to be notifications:
- On 5 May 2025, Wesfarmers Kleenheat Gas Pty Ltd notified AEMO that it does not intend to apply for any Capacity Credits in the 2025 Reserve Capacity Cycle and for any subsequent Reserve Capacity Cycle for the Facility PREMPWR_DSP_02.
- On 21 June 2024, Bluewaters Power 1 Pty Ltd. notified AEMO that it does not intend to apply for Capacity Credits in a future Reserve Capacity Cycle for the Facility GRIFFIN_DSP_01.
Under clause 4.4A.6 of the WEM Rules, a Market Participant may notify AEMO to withdraw a notice previously submitted under clause 4.4A.1 or clause 4.4A.1A provided the withdrawal is made in good faith. Pursuant to clause 4.4A.7 AEMO must publish the withdrawal notice on the AEMO website.
- On 23 May 2025, Bluewaters Power 1 Pty Ltd. notified AEMO that it is withdrawing the notice provided on 21 June 2024. The Facility GRIFFIN_DSP_01 will now be seeking Capacity Credits for the 2025 Reserve Capacity Cycle and for future Reserve Capacity Cycles.