The reserve capacity mechanism (RCM) ensures that there is sufficient generation capacity in the South West integrated system (SWIS) by:

• Setting a reserve capacity requirement two years ahead, published in the Wholesale Electricity Market (WEM) Electricity Statement of Opportunities.
• Allocating certified reserve capacity and capacity credits based on a facility's technical capability.
• Running a reserve capacity auction if insufficient capacity credits have been allocated through the bilateral trade declaration process.
• Testing facilities to ensure they are meeting their obligations.
• Assigning an individual reserve capacity requirement to each market customer, based on contributions to the system peak, to allocate the cost of capacity credits fairly among market customers.

A capacity year in the SWIS is between 1 October and 1 October the following calendar year, to ensure capacity is available during the peak demand period running from October to March.

The RCM processes are separate from the energy market. The steps are shown in the flow chart below.

Market training

AEMO runs training courses on the RCM. Click here to find out more.

Contact us

Questions relating to the RCM should be directed to:

Team Leader, System Capacity

AEMO (WA)
PO Box 7096
Cloisters Square, Perth, WA 6850

Phone: (08) 9254 4300
Fax: (08) 9254 4399
Email: wa.capacity@aemo.com.au