Reserve Capacity Mechanism

Certification of Reserve Capacity

The Certified Reserve Capacity (CRC) assignment process is an important step in the Reserve Capacity Mechanism (RCM). Through a technical review, it determines the maximum quantity of capacity a Facility or Component can provide during peak periods. Market Participants wishing to apply for Capacity Credits must first receive CRC.

CRC is assigned according to Facility Class and Technology Type as follows:

Facility Class

Facility Class  Description 
Scheduled Facility (SF)  A Facility that can respond to a Dispatch Target from AEMO such that it can maintain its Injection or Withdrawal within its Tolerance Range for a specified period and is registered as such in accordance with clauses 2.29.4G and 2.29.4i of the WEM Rules 
Semi-Scheduled Facility (SSF)  A Facility that can reduce the value of its injection or increase the value of its Withdrawal to comply with a Dispatch Cap issued by AEMO and is registered in accordance with clauses 2.29.4G and 2.29.4i of the WEM Rules 
Non-Scheduled Facility (NSF)  A Facility that can be self-scheduled by its operator (with the exceptions that AEMO can direct it to decrease its output subject to its physical capabilities), and which is registered as such in accordance with clause 2.29.4G of the WEM Rules 
Demand Side Programme (DSP)  A Non-Dispatchable Load to provide curtailment 

Technology Type

Technology Type  Description  Assessment Methodology 
Non-Intermittent Generating System (NIGS) A generation system which is not an Intermittent Generating System, including, without limitation, thermal generators fuelled by coal, natural gas, or distillate Capability at an air temperature of 41 degrees Celsius 
Intermittent Generating System (IGS) Any generating system whose output is not reasonably controlled by AEMO, and whose output is dependent on a fuel resource that cannot be directly stored or stockpiled and whose availability is difficult to predict Relevant Level Methodology (Appendix 9 of WEM Rules) 
Electric Storage Resource (ESR) A system or resource capable of receiving and storing energy for later production of electric energy Linearly De-rating Capacity analysing the ESR capacity over its operating life. 
Demand Side Programme (DSP) Non-Dispatchable Load/s able to provide curtailment Curtailment capability of Associated Loads
- based on IRCR (for single Associated Loads) or
- requested amount of CRC (for aggregated Loads)  

AEMO may take the following into account when determining CRC for a Facility:

  • Nameplate capacity and temperature de-rate curve
  • Temperature dependence information
  • Performance of the facility (sent out generation)
  • Transmission network access arrangements
  • Environmental and development approval status
  • Fuel supply
  • Operating constraints
  • Expected hours of availability and outage rate calculations
  • Minimum stable loading level
  • Plant capability
  • Key project dates

The assignment of CRC does not automatically entitle a Market Participant to receive Capacity Credits or associated payments. Capacity Credits are assigned after Market Participants have completed Bilateral Trade declarations, have lodged any required Reserve Capacity Security (for new capacity and upgrades), and the Network Access Quantity (NAQ) model has been run. Capacity Credits are capped at the NAQ.

The key dates associated with the CRC process are set out in clauses 4.1.7, 4.1.11, and 4.1.12 of the WEM Rules. AEMO may decide to modify or extend key dates or times in the Reserve Capacity Cycle timetable in accordance with clause 4.1.1C of the WEM Rules.

The current and archived versions of the Reserve Capacity Cycle timetable along with any extension notices can be found on the AEMO Reserve Capacity Cycle timetable.

Further information on the CRC process is available in the WEM Procedure: Certification of Reserve Capacity Market Procedure AEMO WEM Procedures.

2024 Reserve Capacity Cycle certification workshop

AEMO held two stakeholder information sessions to provide information about the CRC process for the 2024 Reserve Capacity Cycle and the NAQ framework. The presentations are available below.

Certified Reserve Capacity by Capacity Year

The documents below contain the amount of Certified Reserve Capacity by Facility for the 2013–14 and future Capacity Years. Earlier years are not published, as the requirement to publish this information only came into effect from 8 July 2011.

Certified Reserve Capacity assigned for the 2026-27 Capacity Year

  • Previous Capacity Years

  • Constrained Access Certification review 2018 and 2019

    Constrained Access Certification review - 2019 update

    AEMO must carry out a review of Appendix 11, the Constrained Access Entitlement methodology under clause 4.1.34 of the WEM Rules. The review was deferred last year (see below notice), due to uncertainty around the Constrained Access arrangement. In accordance with clause 4.1.32, AEMO has further extended the date by which it must complete the Constrained Access Certification Review until 1 January 2021, given the constrained access design arrangements are currently being developed as part of the Energy Transformation Strategy.

    Constrained Access Certification review (2018)

    In accordance with clause 4.1.32 of the Wholesale Electricity Market (WEM) Rules AEMO has extended the date by which it must complete a Constrained Access Certification Review. The review required under clause 4.1.34 of the WEM Rules must include:

    • an assessment of Appendix 11 of the WEM Rules including the concepts of Constrained Access Facility and Constrained Access Entitlement; and
    • consider whether any changes to the WEM Rules are required.

    AEMO has extended the deadline to complete the Constrained Access Certification Review due to the Public Utilities Office Wholesale Electricity reform work program which is currently implementing market arrangements that will introduce Security Constrained Market and Dispatch. Rule changes that will be implemented under the reform work are likely to impact how AEMO assigns Certified Reserve Capacity to all Facilities under the new constrained access model, and potentially negate any changes that may result from a Constrained Access Certification Review.

    AEMO has extended the date by which it must complete the Constrained Access Certification Review until 1 January 2020.

  • Notice: Network access requirements

    Notice: Network access requirements for Certification - 2016 and 2017 Reserve Capacity Cycles

    Documented evidence of entitlement to network access under clause 4.10.1(bA) of  Wholesale Electricity Market Rules

    AEMO has received enquiries about the 2016 and 2017 Certified Reserve Capacity application process, specifically, the requirement for documented evidence of an entitlement to network access under clause 4.10.1(bA) of the Wholesale Electricity Market Rules (WEM Rules).

    AEMO advises that, for a Certified Reserve Capacity application to be valid, it must comply with the requirements of clauses 4.9.3(a) and 4.10.1 of the WEM Rules. That is, it must include documentation that provides evidence of the matters specified in clause 4.10.1 of the WEM Rules.  The application and the documented evidence must be provided to AEMO by 5:00 pm on 30 June 2017, the closing date for 2016 and 2017 Certified Reserve Capacity applications.

    Clause 4.10.1(bA) of the WEM Rules requires the Market Participant to submit documented evidence of (among other things) an entitlement to network access from a specified date. The specified date must be prior to the date when the Facility will be subject to Reserve Capacity Obligations. In general terms, AEMO notes that documented evidence of an entitlement to network access from a specified date is typically a signed Electricity Transfer Access Contract (ETAC). Further, for a new Facility, an entitlement to the network service(s) under the ETAC from a specified date is likely to be subject to the new Facility being connected to the network. That is, the entitlement to network access does not arise until the new Facility has been connected to the network. Therefore, in those cases, AEMO will also require documented evidence of an entitlement for the new Facility to be connected to the network from a specified date. The documented evidence of an entitlement for the new Facility to be connected to the network from a specified date can typically be a signed Interconnection Works Contract or connection contract.

    If there are any conditions (e.g. conditions precedent) to the entitlement to access, then, depending on the nature of those conditions, the documented evidence is unlikely to support an entitlement to network access from a specified date. AEMO will assess these matters on a case-by-case basis, if they arise.

    AEMO notes that the requirements of clause 4.10.1(bA) of the WEM Rules in relation to the details of any constraints are currently being reviewed. However, it is not anticipated that the review process will result in changes to the requirement for documented evidence of an entitlement to network access from a specified date.

    In summary, if an application does not include documented evidence of an entitlement to network access from a specified date, then the application is not valid and AEMO cannot assess it.

    AEMO's position is supported by the advanced findings provided to AEMO by its market auditor regarding AEMO's assessment of 2015 Certified Reserve Capacity applications. The market auditor found that AEMO breached the WEM Rules by assigning Certified Reserve Capacity to a Facility for which there was no signed ETAC.

    The assignment of Certified Reserve Capacity for the 2015 Reserve Capacity Cycle occurred outside of the 2016 audit period, and therefore the market auditor’s findings are not included in that report. However, a copy of the market auditor's advanced finding, redacted for confidentiality purposes, can be found here.

Information related to specific cases of Certification of Reserve Capacity

The following sections contain information relating to specific cases of certification of reserve capacity.

  • Relevant Level Methodology

    Facilities nominating to use clause 4.11.2(b) of the WEM Rules for their Certified Reserve Capacity (CRC) applications will be subject to the Relevant Level Methodology outlined in Appendix 9 of the WEM Rules.

    The Relevant Level calculation is based on the Existing Load for Scheduled Generation (EFLSG), defined in Appendix 9 of the WEM Rules and explained in more detail in the help guide below.

    Existing Facility Load for Scheduled Generation (EFLSG) 

    AEMO is required to publish the EFLSG Trading Intervals within three Business Days of the Certification of Reserve Capacity window closing for the relevant Reserve Capacity Cycle (Appendix 9, Step 20, WEM Rules). The EFLSG Trading Intervals for the 2024 Reserve Capacity Cycle are provided in the file below:

    AEMO is required to publish a forecast of the EFLSG Trading Intervals by 1 June of Year 1 of the relevant Reserve Capacity Cycle (Appendix 9, Step 19, WEM Rules). The forecast EFLSG Trading Intervals for the 2024 Reserve Capacity Cycle are provided in the file below:

    The EFLSG Trading Intervals for the previous Reserve Capacity Cycles are provided in the files below:

    The forecast EFLSG Trading Intervals for previous Reserve Capacity Cycles are provided in the files below:

    Note: Due to metering data updates and changes to the set of candidate Facilities that have applied for CRC, the EFLSG Trading Intervals published and used for the Relevant Level calculation may vary from the forecast EFLSG Trading Intervals.

    The Facility adjustment factor calculation in step 17 of Appendix 9 uses two parameters, K and U. The values of K and U for the 2019 onwards Reserve Capacity Cycles have been determined by the ERA and are available here. 

    New and upgrade Facilities – Accredited independent expert report

    AEMO has developed an independent expert report guideline to assist accredited experts in their understanding of the report requirements and the purpose it serves in the RCM. AEMO held a workshop with accredited experts on 22 January 2019 and incorporated the feedback provided in the guideline below.

    Information guide for independent expert reports in the Reserve Capacity Mechanism 

    Please provide expected energy output estimates using this template

    • A 5% probability of exceedance of the Facility’s expected generation output value (in MW) for all the Trading Intervals that occurred within the last three years up to, and including, the last Hot Season.

    The information below shows the experts AEMO has accredited to provide these reports.

    Organisation: DNV Australia Pty Limited
    Contact: Trenton Gilbert, Head of Section, Project Development & Analytics
    Phone: (03) 8615 1572
    Email: trenton.gilbert@dnv.com

    Organisation: WSP
    Contact: Lillian Patterson, Director – Renewables
    Phone: (03) 9286 8621
    Email: Lillian.Patterson@wsp.com

    Organisation: SpringCity Pty Ltd
    Contact: Emran Malhi, Managing Director
    Phone: (08) 9460 3795
    Email: emranmalhi@springcity.com.au
    Note: Only for Solar Generators, and Non-Scheduled Facilities Electric Storage Resources (Hybrid systems (solar PV and Battery Energy Storage Systems combined) and Solar-charged independent Battery Energy Storage Systems).

  • Conditional 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.

ElectricityWholesale Electricity MarketReserve Capacity Mechanism
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