AER calls for submissions on reliability instrument request for New South Wales

On 27 November 2020 the Australian Energy Market Operator (AEMO) provided the Australian Energy Regulator (AER) with a T-3 reliability instrument request for a forecast reliability gap in New South Wales from 1 January to 29 February 2024. The forecast reliability gap of 154 MW is the first to be made under Interim Reliability Measures implemented on 26 November 2020.

The AER must decide whether it is appropriate to make the requested reliability instrument by 31 December 2020. The AER will assess the instrument request in accordance with the Interim Reliability Instrument Guidelines and Interim Forecasting Best Practice Guidelines.

If the AER makes the reliability instrument, the Retailer Reliability Obligation will begin. This means that liable entities in New South Wales will be on notice to enter into sufficient qualifying contracts to cover their share of one-in-two year peak demand throughout the forecast reliability gap.

Nominated Market Liquidity Obligation (MLO) Generators for New South Wales—currently AGL, Origin and Snowy Hydro—will be required to perform the liquidity obligation, to ensure there are sufficient contracts available to liable entities.

The National Electricity Rules and the Interim Reliability Instrument Guidelines define the decision making criteria against which the AER must consider the reliability instrument request. The AER invites submissions from interested stakeholders on the reliability instrument request aligned with that criteria by 7 December 2020.

AEMO’s reliability instrument request and supporting documents are now available and find out more about making a submission .

Issued date: 
30 November 2020
AER reference: 
AC 163/20