VSR Incentive Mechanism Procedure

Timeline

On 19 December 2024, the Australian Energy Market Commission made a final rule (National Electricity Amendment (Integrating price-responsive resources into the NEM) Rule 2024) introducing a voluntary framework known as “dispatch mode” to integrate presently unscheduled price-responsive energy resources into NEM scheduling and dispatch processes. The operation of the new “IPRR dispatch mode” will commence on 23 May 2027.

This consultation paper commences the second stage of the standard rules consultation procedure conducted by AEMO to develop the Voluntary Scheduled Resource (VSR) Incentive Mechanism Procedure under National Electricity Rules (NER) 3.10B.2(c). AEMO is developing the VIM Procedure as part of the implementation of the IPRR into the National Electricity Market (NEM) reform project.

NER 11.180.3(a)(3) requires that the VIM Procedure is made and published by the earlier of 1 December 2026, or the date of the first tender process.

AEMO is now consulting on this proposal and invites written submissions from interested persons on the issues identified in this paper to NEMReform@aemo.com.au by 5:00pm (Sydney time) on Monday 11 August 2025.

Scope

AEMO is seeking stakeholder input on the development of the draft VIM Procedure which will specify, amongst other things:

• The criteria for participation
• Any further requirements to receive external funding (where applicable)
• Procedure for operating the incentive mechanism and timing of each tender process
• Assessment criteria and methodology AEMO will apply in selecting successful bids
• Timetable for settlement
• Requirements for a participation agreement