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:

Criteria Description
Ability to Receive Electronic Dispatch Instructions Market Participants must ensure that for each of their Balancing Facilities they are able to receive electronic or backup Dispatch Instructions issued by System Management in accordance with the Power System Operating Procedure (PSOP): Communications and Control Systems. (Balancing Facility Requirements Market Procedure Section 2.1)
Confirmation of Dispatch Instructions Market Participants must confirm receipt of Dispatch Instructions to System Management, in accordance with the requirements in the PSOP: Communications and Control Systems, and the PSOP: Dispatch, each electronic or backup Dispatch Instruction from System Management. (Balancing Facility Requirements Market Procedure Section 2.2)
Implementation of Dispatch Instructions Market Participants must ensure that each Dispatch Instruction from System Management for one of their Balancing Facilities is implemented in accordance with the requirements outlined in the PSOP: Communications and Control Systems, and the PSOP: Dispatch. (Balancing Facility Requirements Market Procedure Section 2.3)
Ramping capability Market Participants must ensure that, subject to the requirements in Balancing Facility Requirements Market Procedure Section 2.3, each of their Balancing Facilities is capable of responding to an electronic Dispatch Instruction from System Management to ramp upwards or downwards to a target MW level at a rate less than or equal to the Facility's Ramp Rate Limit. (Balancing Facility Requirements Market Procedure Section 2.4)
Non-Scheduled Generators – Implementation of Dispatch Instructions Only with respect to dispatch instructions to decrease generation.
Non-Scheduled Generators – Ramping capability Only with respect to dispatch instructions to decrease generation.

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

Balancing gate closure

In accordance with clause 7A.1.16 of the WEM Rules, AEMO must determine and publish the balancing gate closure. The Balancing Gate Closure must be a point in time immediately before the commencement of a Trading Interval and no shorter than two hours and no longer than six hours before the commencement of a trading interval.

Accordingly, AEMO has determined that the balancing gate closure is two hours before the commencement of a trading interval.

Market participants are not permitted to update their Balancing Submissions, in respect of the two-hour period up to and including that trading interval, except on limited specified grounds.

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