WEM Reform Program
AEMO is implementing the WEM Reform Program to ‘prepare for and implement’ the Foundation Regulatory Framework reforms as set out under the WA Government’s Energy Transformation Strategy. The strategy is being led by the Energy Transformation Taskforce (ETF) supported by the Energy Transformation Implementation Unit (ETIU).
The Foundation Regulatory Framework reforms introduce changes to the operation of both the Wholesale Energy Market (WEM) and the Reserve Capacity Mechanism (RCM). This includes revisions to Power System Security and Reliability frameworks and the introduction of Security Constrained Economic Dispatch (SCED), Facility Bidding and constrained access arrangements.
These changes will have significant impacts for AEMO and the broader industry – and will require a large scale implementation effort to hit the target Go Live for SCED in October 2022.
The WEM Reform Program has been in running since mid-2018 with AEMO working with ETIU on development of the new market design and modified regulatory instruments (e.g. WEM Rules). Industry engagement and consultation has and will continue to be channelled via the Transformation Design and Operations Working Group (TDOWG).
AEMO’s implementation will require us to:
- develop and modify WEM Procedures
- create and modify our IT systems
- support stakeholder system and integration testing
- undertake internal and market-wide business process changes
- provide support through change management and training
- run a comprehensive Market Trial process
- support transition to new market operations and post Go-Live support
The program pace of change will be fast, complex and interlinked and requires AEMO to work closely with stakeholders to plan and implement the necessary changes. AEMO is currently engaging with stakeholders on these matters via the WEM Reform Implementation Group (WRIG).
AEMO has prepared the WEM Reform Design Summary to enable readers to gain a high-level understanding of the design and operation of the Wholesale Electricity Market (WEM) resulting from the WA Governments Energy Transformation Strategy.
AEMO has adopted a Market Readiness Engagement & Reporting Strategy, which commits it to a range of activities to manage, coordinate, inform, monitor and report on both AEMO’s and WEM participants’ operational preparedness for running and participating in the new SCED market and the modified RCM. In accordance with the Strategy, AEMO is conducting a periodic Market Readiness Survey, which invites WEM participants to submit information on their readiness status and progress. AEMO aggregates this information to produce a Market Readiness Report. The Market Readiness Reports produced to date are provided below.
For further information on AEMO’s WEM Program please contact us at WA.ETS@aemo.com.au.