Supplementary Reserve Capacity for 2023-24 Capacity Year

Summary and scope

The Australian Energy Market Operator (AEMO) administers and operates the Wholesale Electricity Market (WEM) in the South West Interconnected System (SWIS). AEMO procures Reserve Capacity each year to ensure that there is sufficient generation capacity in the SWIS during peak demand periods. Several changes and risks to supply have been identified since the publication of the 2022 WEM Electricity Statement of Opportunities in June 2022. As such, AEMO is commencing the steps to procure up to 326 MW of anticipated shortfall of capacity between 1 December 2023 and 1 April 2024 in line with clause 4.24 of the WEM Rules. AEMO is seeking tenders from providers capable of generation or load reduction which meet the requirements of Eligible Services in line with clause 4.24.3 of the WEM Rules. This service is to be provided no earlier than 1 December 2023 and is to conclude by 1 April 2024. Each Eligible Service must be available during the hours of 3:30 PM to 8:30 PM AWST in blocks of no less than 2 hours and must provide at least 1 MW of supplementary capacity. The Eligible Service must be available to be activated (if required) over a period of no longer that 16 weeks commencing on or after 1 December 2023 and ending on or before 1 April 2024. The maximum contract value per hour of availability that will be accepted by AEMO for any Supplementary Capacity Contract is $ 1,661.12 per MW per hour. The Supplementary Capacity is expected to be required for no more than 48 hours throughout the period. Full details of the process, including the Supplementary Capacity Contracts and tender form to be used, are available on AEMO’s website at: https://aemo.com.au/energy-systems/electricity/wholesale-electricity-market-wem/wa-reserve-capacity-mechanism/supplementary-reserve-capacity. Submissions to this call for Tender must be made by 5:00 pm (AWST) Friday 8 September 2023. All AEMO enquiries must be directed via AEMO’s eSourcing tool, VendorPanel. For assistance, please contact the Reserve Capacity (WA) team at wa.capacity@aemo.com.au. Western Power enquiries must be directed to network.access@westernpower.com.au and cc wa.capacity@aemo.com.au. Information on the WEM Rules can be found on the Energy Policy WA website at: www.wa.gov.au/organisation/energy-policy-wa/energy-rules-and-procedures.