Balancing market participation

Balancing facility status

AEMO has applied a classification to all Facilities currently operating in the energy market. All Facilities have been registered as either ‘Active’ or ‘Non-active’ in balancing. The following restrictions will apply to Active and Non-active Balancing Facilities in accordance with clause 7A.1.11 of the WEM Rules. For more information, please refer to the Balancing Facility Requirements Market Procedure.

Active Balancing Facilities are not restricted in their bidding ability, and can adjust their balancing offers in the Balancing Market subject to the WEM Rules.

Non-active Balancing Facilities must offer their expected generation at the minimum Short Term Energy Market (STEM) price in their balancing offer, and the remaining capacity must be offered only at the respective facility price cap. Non-active Balancing Facilities may only deviate from this condition and change their balancing submissions where required to do so to comply with an operating instruction from System Management.

Current condition

In accordance with clause 7A.1.11 of the WEM Rules, the Non-active Balancing Facility condition specified below will take effect from 8:00AM on 18 January 2016. The condition will apply to all Facilities designated as Non-active by AEMO. This is shown on the AEMO Market Data website.

1. Condition

1.1. This condition applies for the purposes of clause 7A.1.11 of the Market Rules.
1.2. This condition applies to each Market Participant who has a non-active Balancing Facility.
1.3. For the purposes of this condition, a non-active Balancing Facility is one that AEMO has determined does not meet the Balancing Facility Requirements as specified in steps 2.1.1 to 2.1.4 of the Balancing Facility Requirements Market Procedure.

2. Balancing Submissions

2.1. A Market Participant must ensure that each Balancing Submission that it makes in respect of a non-active Balancing Facility:
(a). (for a Scheduled Generator or a Non-Scheduled Generator) specifies the expected generation quantity in a Balancing Price-Quantity Pair at the Minimum STEM Price;
(b). (for a Scheduled Generator only) specifies any remaining available capacity in another Balancing Price-Quantity Pair at the Maximum STEM Price or the Alternative Maximum STEM Price (as applicable); and
(c). (for a Scheduled Generator only) specifies any unavailable capacity in another Balancing Price-Quantity Pair as “unavailable”.

3. Updating Balancing Submissions before Balancing Gate Closure

3.1. A Market Participant who has made a Balancing Submission in respect of a non-active Balancing Facility must update that Balancing Submission before Balancing Gate Closure as soon as practicable after becoming aware that:
(a). the Balancing Submission is inaccurate in respect of a Trading Interval for which Balancing Gate Closure has not occurred;
(b). the Balancing Submission is inaccurate because the non-active Balancing Facility will not generate the expected generation quantity in that Trading Interval; and
(c). the reason for the inaccuracy is that:
(i) the non-active Balancing Facility will be affected by an Internal Constraint or an External Constraint in that Trading Interval; or
(ii) the Market Participant has received an Operating Instruction in respect of that Trading Interval.

3.2. The updated Balancing Submission (for the purposes of paragraph 3.1 of this condition) must:
(a). (for a Scheduled Generator or a Non-Scheduled Generator) specify the new expected generation quantity in a Balancing Price-Quantity Pair at the Minimum STEM Price;
(b). (for a Scheduled Generator only) specify any remaining available capacity in another Balancing Price-Quantity Pair at the Maximum STEM Price or the Alternative Maximum STEM Price (as applicable); and
(c). (for a Scheduled Generator only) specify any unavailable capacity in another Balancing Price-Quantity Pair as “unavailable”.
3.3. A Market Participant with a Non-Scheduled Generator may update a Balancing Submission before Balancing Gate Closure, by changing the quantities in the Balancing Price-Quantity Pairs, so as to reflect more accurate forecast quantity information.
3.4. A Market Participant must not update a Balancing Submission before Balancing Gate Closure for a reason that is unrelated to those specified in paragraph 3.1(c) or paragraph 3.3 of this condition.

4. Application of this condition and the Market Rules

4.1. For the purposes of clause 7A.1.12 of the Market Rules:
(a). paragraphs 3.1 and 3.3 of this condition are inconsistent with clause 7A.2.8 of the Market Rules; and
(b). paragraph 3.4 of this condition is inconsistent with clause 7A.2.2 of the Market Rules.
4.2. Paragraphs 3.1, 3.3 and 3.4 of this condition are to be given effect notwithstanding those inconsistencies.
4.3. Each Market Participant who has a non-active Balancing Facility must comply with the Market Rules except to the extent specified in paragraphs 3.1, 3.3 and 3.4 of this condition.

Criteria

AEMO has made an assessment based on the following criteria for balancing facilities:

The facilities have been designated as Active or Non-Active as shown here.

Balancing gate closure

In accordance with clause 7A.1.17 of the WEM Rules, the Balancing Gate Closure is 90 minutes immediately before the commencement of the Trading Interval.

A Market Participant (other than Synergy in relation to the Balancing Portfolio) must not submit a new, updated Balancing Submission in respect of a Trading Interval for which Balancing Gate Closure has occurred except in accordance with clause 7A.2.10 of the WEM Rules.