RERT Tendering

Interim Reliability Reserves Invitation to Tender 2024/25 South Australia  

In the 2024 Electricity Statement of Opportunities (ESOO) published in August 2024, AEMO determined that the interim reliability measure of 0.0006% unserved energy  would not be met in South Australia, New South Wales or Victoria in 2024/25 . 

The Interim Reliability Reserve mechanism (see clauses 3.20 and 11.128 of the National Electricity Rules) is intended to operate in a similar way to long notice RERT. 

Reserve contracts for Interim Reliability Reserve differ from Short Notice RERT because they require a full and fixed commitment of reserves and include strict performance requirements and testing conditions. The reserves contracted as Interim Reliability Reserves may not be varied and will be required to be 100% available on a firm basis for the duration of the agreement. 

AEMO sought Tenders from parties who have out of market load reduction or out of market generation capacity. For example, this can be grid-scale generation, large industrial loads, a group of aggregated smaller loads or small onsite generators. 

AEMO has now accepted all qualifying tenders provided in response to the Invitation to Tender but the total reserves contracted will not fully address the reliability gap forecast for the 24/25 summer in South Australia in the 2024 ESOO. 

AEMO has been canvassing other options to secure additional reserves for South Australia and the South Australian government is currently seeking a jurisdictional derogation from the AEMC to allow AEMO to procure Interim Reliability Reserves from certain generators who would otherwise be ineligible under current out of market requirements.  AEMO notes that even if this derogation is made and these additional generators are contracted to provide Interim Reliability Reserves, a forecast reliability gap will remain in South Australia for the period identified in the 2024 ESOO.

For any questions please contact AEMO via the RERT email address rert@aemo.com.au.