Deferral of the 2022 Reserve Capacity Cycle timetable

Consultation Paper

On 26 February 2021, AEMO published the current 2022 Reserve Capacity Cycle timetable, which requires implementation of the Network Access Quantity (NAQ) framework. The NAQ framework provides a mechanism to assign Capacity Credits in the new security constrained market design, using a NAQ Model. A Facility’s NAQ reflects its physical capability limit, network access limit, and prioritisation order in receiving network access during peak demand periods.

AEMO may modify or extend the current 2022 Reserve Capacity Cycle timetable, in accordance with the clause 1.36B.3 of the Wholesale Electricity Market Rules (WEM Rules). 

AEMO is consulting with Market Participants and interested stakeholders to determine potential impacts of deferring key activities of the current 2022 Reserve Capacity Cycle timetable. It is AEMO’s view that extending key activities of the current 2022 Reserve Capacity Cycle will allow:

• AEMO to resolve complexities in the NAQ framework implementation and build a NAQ Model that can effectively determine each Facility’s NAQ taking into consideration the prioritisation order requirement.

• Market Participants to fully understand the NAQ framework and associated changes in the Certified Reserve Capacity processes to support their commercial decisions.

• AEMO to engage with stakeholders more closely on the NAQ-related WEM Procedures development.

• Additional time for Western Power to develop their first RCM Limit Advice and AEMO to develop their first RCM Constraint Equations.

A consultation paper detailing the matters that Market Participants, interested stakeholders and AEMO need to consider can be found here:

Stakeholder consultation process

Submissions in response to this consultation paper should be sent by email to wa.capacity@aemo.com.au by 5.00 PM (Australian Western Standard Time [AWST]) on 7 February 2022. 

As part of the submission, Market Participants and interested stakeholders: 

1. Must complete the submission form (see below).
2. May provide any supporting information or evidence.

AEMO’s decision-making process

AEMO will assess all submissions received in response to this consultation paper to inform its decision-making process on deferring the 2022 Reserve Capacity Cycle activities. Submissions will be published on the WEM Website.

Considerations for deferral will be made based on:

• The proportion of Market Participants and stakeholders impacted by each Year 1 activity deferred.
•  The degree of impact on AEMO and stakeholders as a result of this deferral.

AEMO’s Decision

AEMO received six submissions (see above) from Market Participants in response to the consultation paper. AEMO has taken the submissions into account (together with other relevant matters) to inform its decision-making process. AEMO has decided to extend dates in the 2022 Reserve Capacity Cycle timetable as proposed in the consultation paper. The submissions and decision paper detailing the matters AEMO considered can be found here:

The updated 2022 Reserve Capacity Cycle timetable has been published on the WEM Website and is effective from 18 February 2022.