Amendments to NSCAS Description and Quantity Procedure consultation

05/07/2024
Market National Electricity Market
StageDraft Report
ConvenorAEMO NEM
Initiated18/09/2024
Accepting submissions?No
Submissions close16/10/2024

Consultation process

  • Consultation paper published
    5 July 2024
  • Submissions due on consultation paper
    2 August 2024
  • Draft report published, including a draft NSCAS description and quantity procedure
    18 September 2024
  • Submissions due on draft report
    16 October 2024
  • Final report published, including a draft NSCAS description and quantity procedure
    Expected 5 November 2024

Matters under consultation

In March 2024, the Australian Energy Market Commission (AEMC) released its final determination on Improving security frameworks for the energy transition rule change. This introduced new rule requirements for the Network Support and Control Ancillary Services (NSCAS) Description and Quantity Procedure (Procedure).

AEMO has now commenced the second stage of the standard rules consultation procedure to update the Network Support and Control Ancillary Service (NSCAS) Description and Quantity Procedure (the Procedure) in accordance with Clause 5.20.2 and the Rules consultation procedures in rule 8.9 of the National Electricity Rules (NER).

Submissions are due to 2024_security_consultations@aemo.com.au by 5pm (Melbourne time) on 16 October 2024. Please note that submissions will be published, other than confidential material, as per AEMO’s Consultation submission guidelines.

Key changes

AEMO received four submissions in response to its consultation paper, with a range of views on the proposal. AEMO thanks stakeholders for their submissions and appreciates the thoughtful contributions on these complex matters.

After considering first stage submissions, AEMO has issued a draft Procedure with this draft report for further consultation. This reflects AEMO’s draft determination as follows:

  • Describe inertia network and system strength services – AEMO will include these as types of Reliability and Security Ancillary Services (RSAS) in the Procedure, removing the current explicit exclusions, with descriptions of each service as outlined in the consultation paper proposal.
  • Set out how the quantity and location of inertia network and system strength services is determined – AEMO will specify this process as outlined in the consultation paper proposal, using a three-sigma from the mean approach.
  • Use ‘system typical’ conditions for NSCAS studies – AEMO will include ‘system typical’ studies in the Procedure substantially as outlined in the consultation paper proposal, but with additional information on defining these configurations based on stakeholder feedback.
  • Anticipated and actionable projects – AEMO will amend the Procedure to provide for anticipated and actionable projects to be considered in studies to identify and quantify NSCAS gaps in appropriate cases, as outlined in the consultation paper proposal, with applied assumptions to be noted in NSCAS reports.

AEMO’s draft proposal is to amend the Procedure in the form published with this draft report, with a proposed effective date of 1 December 2024.

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