Certification of reserve capacity
In this section
In this section
- Reserve capacity timetable
- Benchmark reserve capacity price
- Expressions of interest
- Certification of reserve capacity
- Reserve capacity security
- Reserve capacity auction
- Assignment of capacity credits
- Facility tests
- Supplementary reserve capacity
- Individual reserve capacity requirement (IRCR) information
Market participants wishing to apply for capacity credits must first receive certification for that capacity. This requires a technical review of the capability of the facility, and determines the maximum quantity of capacity credits that can be allocated to each facility.
Certified reserve capacity is assigned according to facility type as follows:
- Scheduled generators – sent-out capacity calculated at air temperature of 41 degrees Celsius. This accounts for an efficiency loss at high temperatures, which are typical during peak demand periods.
- Intermittent generators – considers the performance of the facility during peak demand trading intervals.
- Demand side programs – the amount by which the demand from the load or aggregated loads can be curtailed.
AEMO may take the following into account when determining certified reserve capacity for a facility, particularly for new facilities:
- Nameplate capacity and temperature de-rate curve.
- Transmission network access arrangements.
- Environmental approvals.
- Contracts for fuel supplies.
- Expected hours of availability.
- Details of financing arrangements.
- Demand side management (DSM) contracts and load reduction capability.
- Key project dates.
The approval of certified reserve capacity does not automatically entitle a market participant to receive capacity credits or associated payments. Capacity credits are assigned once participants have completed bilateral trade declarations and the reserve capacity auction has been run (if one is required).
Certification is usually completed during July and August each year.
Certified reserve capacity by capacity year
The documents below contain the amount of Certified Reserve Capacity by facility for the 2013–14 and on Capacity Years. Earlier years are not published, as clause 10.5.1(f)(iiiA), which requires publication of these documents, only came into effect from 8 July 2011.
For all extension notices, please visit the Reserve capacity timetable page.
2015 reserve capacity certification workshop
AEMO held a stakeholder workshop on 27 May 2016 to provide information about the Certification of Reserve Capacity (CRC) for the 2015 Reserve Capacity Cycle, which also covered the changes in the CRC application process since last year. The presentation is available below.Previous Reserve Capacity workshops
Certification of Reserve Capacity guideline
The first of four tranches of amendments to the Wholesale Electricity Market Rules (with respect to the Reserve Capacity Mechanism) commenced on 1 June 2016. Corresponding changes to the Certification of Reserve Capacity Market Procedure are required. AEMO is developing a Procedure Change Proposal (as required by clause 2.10 of the Market Rules) and will publish it on the Market Website as soon as it is finalised. Market Participants and other interested stakeholders will have the opportunity to make submissions on the Procedure Change Proposal.
In the meantime, to assist Market Participants, AEMO has published a guideline document (based on the Market Rules as amended) to explain how the new processes for Certified Reserve Capacity applications will be applied in practice.
Information related to specific cases of certification of reserve capacity
The following sections contain information relating to specific cases of certification of reserve capacity.Intermittent generators
The amount of certified reserve capacity for intermittent generators is based on the Relevant Level Methodology in Appendix 9 of the Market Rules. This methodology is based on the load for scheduled generation, which is explained in more detail in the document below.
Existing facility load for scheduled generation
Appendix 9 of the Market Rules requires AEMO to publish the Existing Facility Load for Scheduled Generation by 1 June of Year 1 of the relevant Reserve Capacity Cycle. This is provided in the files below. Please note that this is subject to change prior to the calculation of Certified Reserve Capacity as a result of updates to meter data, updated data from System Management, or changes to the set of Candidate Facilities.
The calculations in step 17 of Appendix 9 use two parameters, K and U. The values of K and U for the 2012, 2013 and 2014 Reserve Capacity Cycles are listed in step 17.
The values of K and U for the 2015, 2016 and 2017 Reserve Capacity Cycles were determined by the IMO on 12 December 2014 and are available here.
If the intermittent generator is yet to enter service, the estimates of facility output must be provided by an independent expert accredited by AEMO (see clauses 4.10.3 and 4.10.3A of the Market Rules). The table below shows the experts AEMO has accredited to provide these reports.
Garrad Hassan Pacific (trading as DNV GL)
Christian Peake, Senior Engineer
(03) 9600 1993
(03) 9602 1714
Jacobs Group (Australia) Pty Ltd
Paul Nidras, Senior Consultant
(03) 8668 3326
(03) 8668 3001
Andrew Kerley, Principal Engineer
(03) 9861 1253
(03) 9861 1144
SpringCity Pty Ltd (restricted to solar generator assessments only)
Emran Malhi, Managing Partner
(08) 9278 2456
(08) 9278 2424Conditional certified reserve capacity
Project proponents may apply to AEMO for Conditional Certified Reserve Capacity at any time before the usual annual certification process. This conditional certification process seeks to give investors greater certainty in securing financing and negotiating bilateral contracts. The information required with an application for Conditional Certified Reserve Capacity is the same as for normal certification.
A project proponent holding Conditional Certified Reserve Capacity for a future Reserve Capacity Cycle must re-apply for Certified Reserve Capacity during the normal certification window. When the Market Participant applies for final certification, it will automatically be granted, provided no information has changed since the conditional certification. Applications for conditional certification attract a processing fee.Early certified reserve capacity
The Early Certified Reserve Capacity process allows new generation projects with long lead times to secure Capacity Credits earlier, providing greater certainty for investors. Early Certified Reserve Capacity, and associated Capacity Credits assigned, are granted for the applicable Capacity Year. The Market Participant does not need to re-apply for certification during the normal window.
Applications for Early Certified Reserve Capacity may be made at any time before the start of Year 1 of the relevant Reserve Capacity Cycle. To be eligible for Early Certified Reserve Capacity, the facility must be deemed 'Committed' and the proponent must declare its intention to bilaterally trade all assigned Capacity Credits. The proponent must then provide Reserve Capacity Security within 30 days of approval of Early Certified Reserve Capacity.New small generators
The standard Reserve Capacity processes allow two years between the assignment of Capacity Credits and the start of obligations associated with those Capacity Credits. This allows time for new generation capacity to be installed. However, small generators can often be installed more quickly.
Generators not exceeding 1 MW can secure Capacity Credits on a shorter timeline. An operator of such a generator may apply to AEMO for Capacity Credits to be assigned for the beginning on the next Capacity Year. It may then reapply for Capacity Credits each year until the start of the first Capacity Year for which it could have secured Capacity Credits under the normal process.
Further details on this process can be found in the Market Procedure: Treatment of New Small Generators.