RERT: RELIABILITY AND EMERGENCY RESERVE TRADER

Transcription

1 RERT: RELIABILITY AND EMERGENCY RESERVE TRADER June 2017 SLIDE 1

2 OVERVIEW Summer 2017/18 What RERT is How RERT works How to be involved in RERT SLIDE 2

3 SUMMER For up to date reserve forecasts for summer please refer to June 2017 Energy Supply Outlook (ESO) SLIDE 3

4 SUMMER What s happening prior to summer: New capacity: batteries, diesel, other Control schemes increased network capacity Risk mitigation or contingency plans to cover generator and transmission vulnerabilities. Better reserve management resulting in earlier intervention and risk awareness Reserve procurement SLIDE 4

5 Spot market WHAT IS RERT - OVERVIEW Market price cap Price mechanisms Reliability standard 0.002% USE Spot price Cumulative price threshold Administered price Market floor price Reliability safety net Reliability and emergency reserve trader (RERT) Reliability directions SLIDE 5

6 WHAT IS RERT - REQUIREMENTS Reserve: additional generation or load curtailment Must be able to respond on request from AEMO Not available to the market or any other agreement or arrangement, including demand side management agreement SLIDE 6

7 WHAT IS RERT - NOTICE TO PROCURE Long-notice (10 weeks to 9 months ahead) o Procured through direct tender Medium-notice (8 days to 10 weeks ahead) o Procured from reserve panel members or direct tender. Short-notice (3 hours to 7 days ahead) o Procured from reserve panel members SLIDE 7

8 WHAT IS RERT - RERT PANEL A panel of entities may be formed for medium-notice and short-notice situations Panel Agreements: o Medium notice - technical and legal o Short notice - technical, legal, and price No payment for being on the panel SLIDE 8

9 HOW RERT WORKS - OVERVIEW Operation of the RERT is divided into two stages: o Stage 1: Procurement - when AEMO is determining whether to enter into reserve contracts o Stage 2: Activation/Dispatch - when AEMO is considering whether to dispatch scheduled reserves or activate unscheduled reserves SLIDE 9

10 HOW RERT WORKS - OVERVIEW Stage 1 - Procurement Long-notice and medium-notice situations o Medium term PASA o Energy adequacy assessment projection o Other information identified by AEMO Short-notice situations o Short term PASA and pre-dispatch o Other information identified by AEMO SLIDE 10

11 HOW RERT WORKS - OVERVIEW Stage 2 - Activation/Dispatch Short term PASA and pre-dispatch Other information identified by AEMO Select RERT contracts to minimise cost SLIDE 11

12 HOW RERT WORKS - FAST EXAMPLE Fast Activation LOR2 Forecast Pre-activation instruction LOR2 LOR3 Activation instruction Power System Secure Reserve not required De-activation instruction Pre-activation lead time Ready to Activate Time to full activation Fully Activated Deactivation lead time For Illustration Only SLIDE 12

13 HOW RERT WORKS - SLOW EXAMPLE Slow Activation LOR2 Forecast LOR2 Forecast Adequate reserves forecast Pre-activation instruction Activation instruction LOR2 De-activation instruction T5 Pre-activation lead time Activation lead time Fully activated De-commitment lead time Commitment lead time For Illustration Only SLIDE 13

14 HOW RERT WORKS - PAYMENTS Availability payment (not for short-notice situations) Pre-activation payment (for unscheduled reserves only) Usage payment Early termination payment (optional for medium and long notice) SLIDE 14

15 HOW RERT WORKS - RECOVERY Costs are incurred by market customers in the region where reserves are required Cost per market customer is proportional to energy consumption of that customer If reserve is required in multiple regions, the cost sharing arrangements must be agreed between the regions and AEMO when entering the contracts. Recovered through usual weekly settlement SLIDE 15

16 HOW RERT WORKS - JURISDICTIONS AEMO must consult with jurisdictions on: o The cost of associated with the procurement and activation/dispatch of reserves o The nature of the reserve contracted o The nature of the expected shortfall o Cost sharing arrangements between regions SLIDE 16

17 HOW TO BE INVOLVED IN RERT 24 May Expression of Interest Published June Regional RERT workshops July Rolling tenders commence September Rolling tenders end October Contracts finalised Summer SLIDE 17

18 HOW TO BE INVOLVED IN RERT For information on the ARENA AEMO Demand Response Initiative go to: arena.gov.au/funding/programs/advancing-renewables-program/demandresponse/ SLIDE 18