Matters under consultation
The focus of this consultation is to reflect the National Electricity Amendment (Improving security frameworks for the energy transition) Rule 2024 (ISF Rule) into the Operating Procedure SO_OP_3708 Non-Market Ancillary Services Procedure (Procedure).
Under the ISF Rule, AEMO has been given a new power to procure NMAS that fall outside the scope of the services previously available under the NER for power system security. These services are referred to in the ISF Rule as ‘transitional services’.
Two types of transitional services are introduced by the ISF Rule:
- Type 1 Services: NER 3.11.11(b)(1) defines these as:
the services are required for power system security and cannot otherwise be provided by an inertia network service, a system strength service, a market ancillary service or a NMAS.
Contracts for the procurement of Type 1 services may be up to three years in length and must not have a term that extends past 1 December 2029.
- Type 2 Services: NER 3.11.11(b)(2) defines these as:
the services are acquired for the purpose of trialling new technologies, or a new application of existing technologies, for the management of power system security in a low- or zero-emissions power system where the particular application of the technology employed through the transitional services has not been used to provide services to manage power system security prior to 28 March 2024.
Contracts for the procurement of Type 2 services may be up to 10 years in length and must not have a term that extends past 1 December 2039.In summary the changes are to include Transitional Services to the existing Procedure.
AEMO considers that while the dispatch process for transitional services is still under design phase, AEMO has assumed the process for transitional services can be implemented the same as NSCAS contracts.
AEMO has considered these changes and in light of the procedure update to occur in time with release of the Transitional Services Guideline, to enable AEMO's ability to commence procurement of Transitional Services, AEMO has decided to consult using 8.9.3 Expedited rules consultation procedure.
AEMO considers these changes make the Procedure consistent with and aligned to the NER, as amended by the ISF Rule.
Consultation Process
AEMO invites stakeholders to:
- provide feedback and comments on the accompanying change-marked document
- identify any unintended adverse consequences of the changes.
Stakeholders are invited to submit written responses via email to NEMReform@aemo.com.au, by Friday 25 October 2024.