Reserve Capacity Tests

AEMO must test Facilities assigned Capacity Credits to ensure they can meet their Reserve Capacity Obligations.  

Scheduled Facilities 

Scheduled Facilities (or each Separately Certified Component (SCC) of a Scheduled Facility) must be tested twice a year: 

  • One summer period Reserve Capacity Test (1 October to 31 March) 
  • One winter period Reserve Capacity Test (1 April to 30 September) 

AEMO must endeavour to conduct Reserve Capacity Tests without warning. 

Testing must be undertaken for each fuel type the Facility is certified to operate on. 

All results are temperature-adjusted to 41 °C and Market Participants must submit a Temperature Dependence Curve at least 10 Business Days before the start of the relevant Reserve Capacity testing period. 

For each of the two testing periods, the Facility may optionally pass by observation, up until the deadline. If the Facility passes by observation, it is exempt from being subject to a Reserve Capacity test during the same period. To pass by observation, Facilities (including, where relevant, their SCCs) must operate at a level equivalent to their Required Level, for: 

  • Non-intermittent Generating Systems (NIGS): two consecutive half-hour Trading Intervals. 
  • Electric Storage Resources (ESRs): the average performance over the Electric Storage Resource Obligation Duration. 

Demand Side Programmes (DSP) 

DSPs must undergo two forms of testing: 

  • One Verification Test between 1 October and 30 November of each year (or, in the case of a new DSP, within 20 Business Days of registration). DSPs must reduce their consumption by at least 10% of the Capacity Credits assigned for one half-hour Trading Interval. Market Participants must notify AEMO at least two Business Days before the test is to be conducted.
  • One summer period Reserve Capacity Test: the DSP must reduce its consumption to its Required Level, adjusted to the level of Capacity Credits currently held, for two consecutive half-hour Trading Intervals.

Failed Tests

If a Facility fails a first Reserve Capacity Test, AEMO must re-test the Facility between 14 and 28 days after the first test.

If the Facility fails a second Reserve Capacity Test, its Capacity Credits will be reduced to the maximum output achieved during either test.

The Market Participant may request a third Reserve Capacity Test where a Facility has failed both previous tests. Upon passing the third test, the Capacity Credits will be reinstated, or set at the level of output achieved during the third test.

If a DSP fails a Verification Test, AEMO must reduce its Capacity Credits to 0 MW. The Market Participant may request a second Verification Test to have the Capacity Credits reinstated. 

Reserve Capacity Testing Quarterly Reports

Further information

For further information about Reserve Capacity Testing, please see the WEM Procedure: Reserve Capacity Testing, and clauses 4.25 and 4.25A of the WEM Rules.

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