Retail reliability obligation voluntary book builds
The Retail Reliability Obligation (RRO) commenced on 1 July 2019. The RRO framework is designed to send early investment signals to the market in relation to impending supply shortfalls, providing time and incentives to invest in new supply-side or demand response capacity to fill the predicted generation shortfall.
The RRO requires that, if a reliability gap period is forecast for a NEM region, liable entities enter into sufficiently firm ‘qualifying contracts’ to cover their share of the one-in-two year peak demand forecast for the region and reliability gap period. The share is based on the metered energy consumption at the liable entity’s connection points in the reliability gap region.
A liable entity is required to demonstrate to the Australian Energy Regulator (AER) that it meets its qualifying contract requirement approximately one year before the commencement of the reliability gap period (T-1).
Liable entities may wish (but are not obliged) to use the new voluntary book build mechanism under Chapter 4A. H of the NER to assist in finding contracts with providers of new or uncontracted capacity. AEMO is required to conduct a voluntary book build process after the AER or the South Australian Minister issues a ‘T-3 reliability instrument’ approximately three years before a reliability gap is forecast to arise and may conduct a further book build about a year later.
In accordance with the Voluntary Book Build Procedures, the fees for accreditation in the Voluntary Book Build are as follows:
Accreditation fee (once off) $825 +GST.
Please see this section for the details regarding registering as a Voluntary Book Build Participant.