The Coordinator of Energy is conducting a review of the supplementary capacity provisions of section 4.24 of the Wholesale Electricity Market Rules (WEM Rules).
Clause 4.24.19 of the WEM Rules requires that after each call for tenders for supplementary capacity or otherwise acquiring Eligible Services the Coordinator of Energy must review the supplementary capacity provisions and undertake a public consultation process on the outcomes of the review.
On 11 August 2023, AEMO commenced a process to acquire supplementary capacity in accordance with section 4.24 of the WEM Rules by publishing a call for tender.
AEMO concluded the formal tender process and direct negotiations for the 2023-24 summer on 22 November 2023 and 7 March 2024, respectively. Eight Supplementary Capacity Contracts were awarded.
AEMO contracted 160 MW of supplementary capacity, including load reduction and energy production services.
The supplementary capacity review is assessing whether:
the supplementary capacity provisions require improvements; and
the improvements introduced by the 2023 supplementary capacity review have provided better outcomes for the latest supplementary capacity process.
