Introduction
On 25 January 2013, AEMO commenced formal consultation on the system restart ancillary services (SRAS) arrangements in the National Electricity Market (NEM) with the publication of its Issues and Options Paper. The objective of the SRAS review is to ensure the SRAS arrangements deliver value to energy consumers through an appropriate price and service balance.
Extension of SRAS Final Report
AEMO is extending the publication date of the SRAS Review Final Report until late 2013. The extension follows stakeholder responses and is to allow sufficient time for AEMO to obtain independent review on its power system studies. These will be reviewed to ensure AEMO’s recommended changes to the SRAS quantities and number of electrical sub-networks meet the System Restart Standard.
AEMO has released the final report from the SRAS review:
| AEMO Final Report - System Restart Ancillary Services 12 Feb 2014 | 1 MB (.pdf) |
Appendix 1 - Independent report by DMV KEMA |
The updated SRAS Review’s key milestones and revised indicative timeline are set out in the table below:
| KEY MILESTONE | INDICATIVE TIMELINE |
|---|---|
| Issues and Options Paper published | 25 January 2013 |
| Submissions due on Issues and Options Paper | 8 March 2013 |
| Draft Report published | 10 May 2013 |
| Submissions due on Draft Report | 7 June 2013 |
| Final Report published | Late 2013 |
Draft Report
On 10 May 2013, AEMO published the Draft Report which describes AEMO’s recommendations for changes to the SRAS arrangements.
The SRAS Draft Report outlines the following key recommendations for improving the SRAS arrangements:
a) To reduce the quantity of SRAS procured to meet the System Restart Standard (SRS) by a combination of the following measures:
• Procuring SRAS on the basis of a regional, rather than NEM-wide, black system condition, while still meeting the SRS
• Re-defining the electrical sub-networks, reducing their number from 10 to seven.
• Procuring one SRAS in each electrical sub-network except Tasmania, where two would be required to provide sufficient diversity and contingency. On the mainland, supply from adjacent regions can be used to support SRAS sourced within a region, providing sufficient diversity and contingency to meet the requirements of the SRS.
• Creating one SRAS definition to replace the current definitions of primary and secondary restart services.
b) Developing proposed rule changes to identify and manage non-competitive outcomes in the SRAS tender process, along similar lines to those in effect under clauses 3.11.5 (h)-(i) of the NER for the Network Support and Control Ancillary Services (NSCAS) tender process.
c) To improve cost-reflective recovery for SRAS with respect to the benefits of a service, by allowing the costs of SRAS to be recovered on a regional basis.
d) To monitor and review the effectiveness of the current procurement process in relation to the SRAS objective in the NER by reviewing outcomes from the next tender process, after the implementation of SRAS quantity reductions, against comparable international benchmarks.
| System Restart Ancillary Services Review Draft Report 10 May 2013 | filesize: 851 KB (.pdf) |
| Appendix 1 - Summary of Submissions to the Issues and Options Paper 10 May 2013 | filesize: 270 KB (.pdf) |
To view submissions in response to the SRAS Review Draft Report please click on the relevant links below:
| AGL 14 June 2013 | filesize: 67 KB (.pdf) |
| Alinta 14 June 2013 | filesize: 160 KB (.pdf) |
| GDF Suez 14 June 2013 | filesize: 237 KB (.pdf) |
| Hydro Tasmania 14 June 2013 | filesize: 111 KB (.pdf) |
Macquarie Generation |
| National Generators Forum 14 June 2013 | filesize: 230 KB (.pdf) |
| Origin Energy 14 June 2013 | filesize: 57 KB (.pdf) |
| Stanwell 14 June 2013 | filesize: 332 KB (.pdf) |
| Tomago 14 June 2013 | filesize: 742 KB (.pdf) |
| Transgrid 14 June 2013 | filesize: 55 KB (.pdf) |
Contact Details
AEMO prefers that submissions be forwarded in electronic format as submissions will be published on AEMO’s website. These should be emailed to SRAS.review@aemo.com.au.
Alternatively, submissions can be posted to:
Taryn Maroney
AEMO
PO Box 7326
Baulkham Hills BC NSW 2153
ISSUES PAPER
On 25 January 2013, AEMO released an Issues and Options Paper which explained that SRAS costs had increased significantly in the last few tender processes. The paper discuss a range of issues including weather the SRAS objective was being met and how AEMO could improve the value SRAS services.
For a copy of the issues paper and to view submissions received please go to the Issues and Options Paper page.