The Coordinator of Energy (Coordinator) must review several Electricity System and Market (ESM) Rules provisions related to energy and availability limited resources in accordance with section 4.13B of the ESM Rules. Under clause 4.13B.2 of the ESM Rules, the first review must be completed by 1 October 2026.
Section 4.13B of the ESM Rules outlines the requirements for this review. These requirements were originally introduced to the ESM Rules on 1 November 2021. On 15 January 2025, additional requirements for this review were introduced to implement the outcomes of the Reserve Capacity Mechanism (RCM) Review.
The Coordinator considers that it is appropriate to undertake a review of the provisions that have been in operation for five years at the completion of the review aligning with the intent of the relevant ESM Rules. Consequently, the Coordinator will only review items implemented before or for the 2021 Reserve Capacity Cycle.
The significant growth of Electric Storge Resource (ESR) capacity may require appropriate solutions to mitigate Power System Security and Reliability (PSSR) issues, and this has also been included in the scope of this review. This was also identified by AEMO in its Engineering Roadmap FY2026 Priority Actions.
The scope of this Capability Class 2 Technologies (CC2T) Review includes:
- Whether market design changes are required to maintain PSSR with the growing share of ESR in the SWIS;
- Whether the methodology for rating the capacity of ESR for the purposes of setting Certified Reserve Capacity remains consistent with the State Electricity Objective (SEO);
- Whether the DSP Obligation Duration remains consistent with the SEO; and
- Whether the ESR obligation intervals (ESROI), including the effectiveness of the method used by AEMO to determine the ESROI, is consistent with the SEO.
This Review is being conducted in consultation with the Market Advisory Committee and the Capability Class 2 Technologies Review Working Group (CC2TRWG).
Print this page
