New AEMC rule for generators

A new rule developed by the Australian Energy Market Commission (AEMC) will see scheduled generators provide more detailed information about generator availability to help shape a more reliable and secure power system into the future.

Under the final rule, scheduled generators will be required to submit a “unit state” or reason code to explain their availability, alongside the megawatt (MW) availability they already submit to the Australian Energy Market Operator (AEMO) as part of the medium-term projected assessment of system adequacy (MT PASA) process.

Scheduled generators will also need to submit the “recall time” it will take them to return to full availability after a period of being offline.

The new reason and recall time information will be submitted for the period seven days to three years ahead and published by AEMO, allowing generators, retailers, policymakers and investors to make more informed decisions that will have flow-on benefits for all stakeholders.

AEMC and Energy Security Board (ESB) Chair Anna Collyer said the rule, proposed by AEMO, will help to provide greater transparency and confidence as the national power system transitions away from traditional power generation units.

“Improving the quality of information about future generator availability and making it publicly available will give market participants a more nuanced view about what supply could look like under different future scenarios,” Collyer said.

“This rule will give the market the best chance possible to proactively resolve shortfalls in generation, including scenarios where generators make changes to their operating schedules as they near the end of their technical life.

“Ultimately, this information will support a more coordinated approach to delivering a lower emissions electricity system that is reliable and affordable for all stakeholders, especially consumers.”

The new rule is the first of the ESB post 2025 market design recommendations to be implemented. It is one of a suite of measures focused on ensuring reliability as the energy market transitions.

The new requirements will commence on Sunday, 9 October 2023, with AEMO required to update its guidelines in consultation with stakeholders by Thursday, 30 April 2023.

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