Second Round Long Notice RERT ITT

Summary and scope

Under the National Electricity Rules (NER) AEMO must take all reasonable actions to ensure reliability of supply, and where practicable, AEMO must maintain power system security by negotiating and entering into reserve contracts. In doing so, AEMO must comply with the RERT principles and RERT guidelines. AEMO may procure reserve through the creation of a panel of entities that may be called upon to tender for and enter into reserve contracts under certain circumstances where notice of projected shortfall is relatively short. Alternatively, AEMO may also procure reserve through invitations to tender where it has 10 weeks or more notice of projected shortfall. The procedure AEMO will follow is detailed in the Procedure for the Exercise of the RERT. The duration of the reserve period is expected to be between 1 January 2018 to 31 March 2018. This is indicative only and is not a fixed or final and are for the purposes of determining what may be available (including by way of RERT). Closer to summer, before contracting for reserve, AEMO would re-run our models to determine what and when reserve is reasonably needed to meet the reliability standard. Accordingly, this period will be under continuous revision during the Long Notice RERT tender process up to the date of entering into agreements on 31 October 2017. AEMO has requested for and received proposals for Long Notice RERT with reserve duration from 1 November 2017 to 31 March 2018. Respondents to the First Round ITT must honour the offers made in the First Round ITT for the validity period specified. If respondents to the First Round ITT withdraw their offer and make an offer under the Second Round ITT, AEMO reserves all rights, including, without limitation, rejecting the proposal made under the Second Round ITT. As it is required to do AEMO under the NER, has revised reserve requirements in Victoria and South Australia and determined that it is prudent to tender for additional reserve between 1 January 2018 to 31 March 2018. If you intend to respond please ensure that you open and complete all relevant documents attached. The documents are: The Invitation to Tender which outlines all response requirements; and Proposed Long Notice Reserve Contract