Infographic: What does a ‘strategic electricity reserve’ mean?

3 min

AEMO has entered into agreements with large electricity users, retailers and generators to secure a total of 1,150 megawatts of strategic reserves across Victoria and South Australia that we can call on in emergencies e.g. multi-day heatwave events occurring concurrently across both South Australia and Victoria through the Reliability and Emergency Reserve Trader (RERT) process.

The RERT is a function available to AEMO to maintain power system reliability and system security using reserve contracts. It is termed ‘off-market’ as the generation or demand response sits outside the wholesale electricity market. Through the RERT, participants are contracted by AEMO to either use less energy or generate power from their own generators. Aggregators are also contracted to procure demand response from electricity users.

It is important to note that neither the RERT process nor demand management are new – RERT is a business as usual function that AEMO has used before, while demand management schemes have been used both here and globally.

The below infographic attempts to outline the process:

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