Reserve Capacity Tests

AEMO must test Facilities assigned Capacity Credits to ensure they can meet their Reserve Capacity Obligations.  

AEMO must test certain Facilities assigned Capacity Credits to ensure they can meet their Reserve Capacity Obligations. Facilities demonstrate capability twice a year during:  

  • Summer period (1 October to 31 March)  
  • Winter period (1 April to 30 September) 

Scheduled and Semi-Scheduled Facilities  

Separately Certified Components (SCC) which are Non-Intermittent Generating Systems (NIGS) and Electronic Storage Resources (ESR) of a Scheduled Facility or Semi-Scheduled undergo Reserve Capacity Testing.  

Facilities (including, where relevant, their SCCs) must operate using the fuel type the Facility is certified on to a level equivalent to or above their Required Level, for:  

  • Non-intermittent Generating Systems (NIGS): two consecutive half-hour Trading Intervals.  
  • Electric Storage Resources (ESRs): the average performance over the Electric Storage Resource Obligation Duration.  

The Required Level is temperature-adjusted to 41 °C using Temperature Dependence Curves from CRC applications or submitted at least 10 Business Days before the start of the relevant Reserve Capacity testing period and the nominated temperature measurements.  

For each of the two testing periods the Facility may pass by observation on any date, up until the deadline four months within the period. If the Facility does not pass by observation, then AEMO is required to schedule Reserve Capacity Tests at a specific date/time and without warning.  

If the Facility fails two scheduled Reserve Capacity Tests, its Capacity Credits will be reduced to the maximum output achieved during either test. 

The Market Participant may request a third Reserve Capacity Test where a Facility has failed both previous tests. Upon passing the third test, the Capacity Credits will be reinstated, or set at the level of output achieved during the third test. 


Demand Side Programmes (DSP) 

For each of the two testing periods, AEMO must verify the DSP can decrease it’s DSP Energy Level to the Required Level by either: 

  • observing the Facility respond in response to a Dispatch Instruction for at least two consecutive Trading Intervals, or; 
  • testing, in accordance with clause 4.25.9, for not less than two consecutive Trading Intervals. AEMO must endeavour to conduct RC Tests without warning and provide at least two hours and no more than three hours' notice. 

For each of the two testing periods the Facility may demonstrate by observation on any date, up until the deadline four months within the period. If the Facility does not demonstrate by observation, then AEMO is required to schedule Reserve Capacity Tests at a specific date/time and without warning.  

In each testing period, at any time after a DSP Dispatch Event a Market Participant may request that AEMO conduct an additional Reserve Capacity Test. A Market Participant must not request more than three Reserve Capacity Tests during each period. 

The Reserve Capacity Test results are not assessed as pass/fail and do not result in Capacity Credit reductions, instead results are considered through Refunds. 


Reserve Capacity Testing Quarterly Reports 

Facilities which underwent Reserve Capacity Testing as well as Facilities unable to complete testing are published in Quarterly Reports. 

Further information

For further information about Reserve Capacity Testing, please see the WEM Procedure: Reserve Capacity Testing, and clauses 4.25 of the ESM Rules.

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