Tenders and Expressions of Interest for NCESS –Reliability Services 2024-26 (WA)
The Coordinator of Energy determined, under clause 3.11A.4 of the Wholesale Electricity Market (WEM) Rules, to trigger, at the request of the Australian Energy Market Operator (AEMO), a Non-Co-optimised Essential System Services (NCESS) procurement process for a for a Peak Demand Service and Minimum Demand Service to commence on 1 October 2024 with a two-year duration.
The NCESS Trigger Submission was based on AEMO’s analysis indicating that there is a material risk that expected facility capability in the WEM will be insufficient to manage forecast reliability. AEMO considered that the existing mechanisms under the WEM Rules may not be sufficient to address these risks.
Outcome
AEMO has entered NCESS Contracts with five Service Providers for eleven projects to provide up to 630 MW of Peak Demand Service and 446 MW of Minimum Demand Service against a requirement of 830 MW and 269 MW respectively. The selection of Minimum Demand Service exceeded the requirement due to the indivisible nature of submissions.
As required by clause 3.11B.15 of the WEM Rules, AEMO must publish details regarding each NCESS Contract on the WEM Website.
The services provided under each NCESS Contract are from 1 October 2024 until 1 October 2026 for:
- the Peak Demand Service, increase Injection during the Electric Storage Resource Obligation Intervals; and
- the Minimum Demand Service, to increase Withdrawal or (where the service equipment is not a Registered Facility) decrease Injection as required by AEMO during the hours of 9.00 am to 3.00 pm (and generally, 10.00 am to 2.00 pm).
The payment structure for each NCESS Contract is:
- for a Registered Facility and Unregistered Equipment – an availability payment (in ($/Trading Interval/MW) for making the service available (which is not payable unless and until the NCESS provider satisfies the conditions precedent); and
- for Unregistered Equipment – an activation payment (in ($/Trading Interval/MW).
The required details to be published for each NCESS Contract are indicated in the tables below.
Registered Facilities
| Service Provider legal name | Facility or equipment name | Location | Peak Demand Service Availability Price | Peak Demand Service Activation Price | Minimum Demand Service Availability Price | Minimum Demand Service Activation Price |
| Cunderdin Development Pty Ltd | SBSOLAR1_CUNDERDIN_PV1 | Cunderdin WA 6407 | $66.00 | $0.00 | $0.00 | $0.00 |
| Collie Battery Pty Ltd (ACN 665 882 351) as trustee for the Collie Battery Trust (ABN 30 822 388 721) | COLLIE_ESR1 | Palmer WA 6225 | $154.26 | $0.00 | $38.56 | $0.00 |
| Alinta Sales Pty Ltd | ALINTA_WGP_G | Wagerup WA 6215 | $68.00 | $0.00 | $0.00 | $0.00 |
| Alinta Sales Pty Ltd | ALINTA_WGP_U2 | Wagerup WA 6215 | $68.00 | $0.00 | $0.00 | $0.00 |
| Alinta Sales Pty Ltd | Wagerup BESS | Wagerup WA 6215 | $128.00 |
$0.00 | $93.50 | $0.00 |
| Electricity Generation and Retail Corporation | KWINANA_ESR2 | Naval Base WA 6265 | $25.97 | $0.00 | $7.31 | $0.00 |
Unregistered Equipment
| Service Provider legal name | Facility or equipment name | Location | Peak Demand Service Availability Price | Peak Demand Service Activation Price | Minimum Demand Service Availability Price | Minimum Demand Service Activation Price |
| Enel X Australia Pty Ltd | EnelX Tranche 1 | SWIS-wide | $39.38 | $150.00 | $0.00 | $0.00 |
| Enel X Australia Pty Ltd | EnelX Tranche 2 | SWIS-wide | $44.52 | $150.00 | $0.00 | $0.00 |
| Enel X Australia Pty Ltd | EnelX Tranche 3 | SWIS-wide | $49.66 | $150.00 | $0.00 | $0.00 |
| Enel X Australia Pty Ltd | EnelX Tranche 4 | SWIS-wide | $61.64 | $150.00 | $0.00 | $0.00 |
| Enel X Australia Pty Ltd | EnelX Tranche 5 | SWIS-wide | $75.34 | $150.00 | $0.00 | $0.00 |
About the Call for NCESS Submissions
Following the Coordinator of Energy’s determination to trigger the NCESS procurement process for a Peak Demand Service and Minimum Demand Service on 16 December 2022, AEMO issued a call for NCESS seeking submissions for provision of these services from capable providers in the South West Interconnected System.
AEMO would like to thank stakeholders who responded to the Expressions of Interest with feedback to the draft NCESS Service Specifications which helped us to understand any economic or technical barriers or benefits to providing this service. The finalised NCESS Service Specifications is available below.
AEMO published the Call for NCESS submissions on the Vendor Panel and key activities as part of this process is outlined below.
Queries can be submitted by email to WA.FutureSystemDesign@aemo.com.au.
|
Key Activities |
Date |
|
Call for expressions of interest |
Tuesday 20 December 2022 |
|
Date and time for lodgement of Expressions of Interest |
Friday 20 January 2023 |
|
Call for NCESS Submissions |
Monday 20 February 2023 |
|
Date and time for lodgement of NCESS Submissions |
Tuesday 21 March 2023 by 5.00pm AWST |
|
Notification of outcome |
Friday 21 April 2023 |
|
Outcome: Publication of details regarding NCESS contracts |
Friday 10 November 2023 |
AEMO NCESS Trigger Submission December 2022
To find a copy of the Coordinator of Energy’s determination to trigger the NCESS please visit Energy Policy WA’s web page: Coordinator Determinations.