Australian electricity and gas markets - June 2021 update

What you need to do

Stakeholders should note the new rules and reports published below, and note the deadlines for making submissions.

National Electricity Rules

• On 3 June 2021, the AEMC made a final determination and rule in its Implementing a general power system risk review rule change. The rule change will amend the NER to implement a holistic General Power System Risk Review (GPSRR) that will replace the existing Power System Frequency Risk Review. The GPSRR will be an annual review requiring AEMO, in collaboration with NSPs, to identify and assess risks to power system security that it expects would be likely to lead to cascading outages or major supply disruptions. The rule change includes a transitional period and requires AEMO to complete the first GPSRR by 31 July 2023. The final determination and rule can be found here.

• On 17 June 2021:
  
  • The AEMC published its final determination in its Prioritising arrangements for system security during market suspension rule change. The AEMC decided not to make a rule as it is clear that the NER applies during a period of market suspension unless otherwise stated within the NER. The final determination can be viewed here.
  • The AEMC made a final determination and rule in its NEM settlement under low, zero and negative demand conditions rule change. The final rule amends the NER to ensure the NEM will continue to settle during trading intervals of low, zero or negative net regional demand and comes into effect on 1 September 2021. The final determination and rule can be viewed here.
  • The AEMC published its draft determination and draft decision not to make a rule in relation to its Settlement under low operational demand rule change. The AEMC reported it made the draft decision as the issues were addressed in the final determination and rule in its NEM settlement under low, zero and negative demand conditions rule change. Stakeholder submissions on the draft determination are open until 29 July 2021. Interested parties can access the draft determination and draft decision and make submissions here.

• On 24 June 2021, the AEMC made a draft decision in its Generator registrations and connections rule change not to require generators sized between 5 and 30MW to be scheduled and made a draft rule to increase transparency of AEMO's registration, classification and exemption processes. Submissions on the draft determination and rule close on 19 August 2021. Those interested can review the draft determination and rule and make submissions here.
• The AEMC delayed publication of the following expected draft or final rule changes which were initially anticipated to be published in June 2021:
  • Access pricing and incentive arrangements for distributed energy resources (final determination and final rule);
  • Introduction of ramping services (draft determination and draft rule);
  • Operating reserve market (draft determination and draft rule); and
  • Capacity commitment mechanism for system security and reliability services (draft determination and draft rule). 

National Energy Retail Rules

• No retail rule change requests were received in June. No AEMC determinations were published.

National Gas Rules

• No gas rule change requests were received in June. No AEMC determinations were published. 

Other updates

• On 16 June 2021, the 2020 Renewable Energy Target Annual Statement – Large-scale Renewable Energy Target met was tabled in Federal Parliament. The statement can be viewed on the Clean Energy Regulator's website here.
• On 30 June 2021, the ESB published a summary of stakeholder submissions on its Post-2025 Options Paper. The summary can be viewed here. 

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Authors: Paul Newman, Partner; Andre Dauwalder, Senior Associate.