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 Australian Energy Regulator (AER) with a reliability instrument request.
Forecast reliability gap
In the 2023 ESOO AEMO has forecast a 250 MW reliability gap in New South Wales in 2026-27.
On 31 August 2023 AEMO requested the AER to make a T-3 reliability instrument. The T-3 Reliability instrument applies to the New South Wales region of the NEM for the trading intervals between 3 pm and 10 pm Eastern Standard Time, each weekday during the period 1 December 2026 to 31 March 2027 inclusive. The size of the forecast reliability gap is 250 MW. AEMO's one-in-two year peak demand forecast for the forecast reliability gap period is 13,890 MW (reported on a 50% Probability of Exceedance, ‘as generated’ basis). We now must make a decision on whether to issue a reliability instrument by 31 October 2023.
When deciding on the request we must consider the decision making criteria as set out in the National Electricity Rules (NER). How we will consider these is set out in the Interim reliability instrument guidelines.
Submissions on the reliability instrument request close on 19 September 2023.