The Retailer Reliability Obligation (RRO) is designed to support reliability in the National Electricity Market (NEM). In particular it encourages retailers, and some large energy users, to establish contracts for their share of demand for a prescribed period. If the Australian Energy Market Operator (AEMO) identifies a reliability gap in a region of the NEM as part of its Electricity Statement of Opportunities (ESOO) it must provide the AER with a reliability instrument request.
T-3 Reliability Instrument
On 28 November 2023 the AER made a T-3 Reliability Instrument for South Australia from 1 December 2026 to 28 February 2027 inclusive.
The T-3 Reliability instrument applies to the South Australia region of the NEM for the trading intervals between 5 pm and 9 pm National Electricity Market time, each weekday during the period 1 December 2026 to 28 February 2027 inclusive. The size of the forecast reliability gap is 205 MW. AEMO's one-in-two year peak demand forecast for the forecast reliability gap period is 3137 MW (reported on a 50% Probability of Exceedance, ‘as generated’ basis).
Market Liquidity Obligation
The Market Liquidity Obligation (MLO) is a market making requirement designed to facilitate transparency and liquidity in the trading of electricity futures contracts relating to a forecast reliability gap. The MLO operates between T-3 and T-1 when the Retailer Reliability Obligation (RRO) is triggered. MLO generators under the MLO are required to post bids and offers, with a maximum spread, on an approved exchange for standardised products that cover the period of the gap.
In South Australia the MLO generators are AGL Energy and ENGIE. The MLO begins on 5 December 2023.