On 13 July 2017, the Australian Energy Market Operator (AEMO) issued an Invitation to Tender to seek responses from potential providers for the Long Notice Reliability and Emergency Reserve Trader (RERT) contracts (“First Round ITT”). On 6 September, AEMO followed up the First Round ITT with a Second Round Request for Long Notice RERT after additional forecast reserve requirements for the period January to March 2018.
In accordance with the National Electricity Rules and the RERT Guidelines, AEMO is now issuing a second round invitation to Tender for Long Notice RERT (Second Round ITT) seeking offers for the provision of long notice reserve for January 2018 to March 2018 in Victoria and South Australia (combined requirement). These second round offers will be in addition to the reserve tenders received in the First Round ITT conducted earlier this year (refer to Edge News, AEMO Considers Options For Better Load Management in VIC and SA).
For long notice RERT, AEMO must enter into contracts prior to 31 October 2017. Consequently, the Second Round ITT announced there is likely to be a final opportunity for providers to tender for provisions of Long Notice RERT reserve.
AEMO (Audrey Zibelman CEO of AEMO) commented in the media yesterday, saying “I feel very comfortable we have done everything we can, and maybe then some; to make sure we are able to get through this summer without any load-shedding and that’s very important”. The comment suggests the commitment to participate in the RERT has been to the extent that there will be no involuntary load shedding, despite AEMO publishing in the Electricity Statement of Opportunity, released on 5 September, that described the VIC and SA markets as being “in a tight supply-demand balance” and could face involuntary load shedding.
If you would like to read more about what the outlook means for your business contact Edge on 07 3232 1115.
