3 Power System Security and Reliability

Security and Reliability

Explanatory Note The amendments to section 3.1 recognise that the SWIS frequency operating standards are being moved from the Technical Rules to the WEM Rules.

3.1. SWIS Operating Standards

3.1.1. The frequency and time error standards for the SWIS are as

defined in Chapter 3B and Appendix 13.

3.1.2. The voltage standards for a Network in the SWIS are as defined in

the Technical Rules that apply to that Network.

3.1A. Operating Protocol

3.1A.1. If AEMO reasonably believes it is necessary to support the

management of Power System Security and Power System Reliability, AEMO and a Network Operator must jointly develop and maintain an Operating Protocol in accordance with this section 3.1A.

3.1A.2. An Operating Protocol must describe how AEMO and the relevant

Network Operator will coordinate their performance of relevant Power System Security and Power System Reliability related responsibilities under these WEM Rules. An Operating Protocol must include, but is not limited to:

\(a\) governance arrangements for the Operating Protocol, including the change management process for the Operating Protocol;

\(b\) descriptions of relevant Operating Zones in the SWIS and the types of information that must be shared by AEMO and the Network Operator concerning the relevant Operating Zones;

\(c\) general operational communication processes to be followed by AEMO and the Network Operator, including communication processes for applicable SWIS Operating States and for issuing and responding to directions under these WEM Rules;

\(d\) processes for the management of Islands within the SWIS;

\(e\) processes and responsibilities for the management of emergencies, including the delegation of functions by AEMO to the Network Operator in an emergency as contemplated by clause 2.1A.3 of these WEM Rules;

\(f\) general principles and processes that AEMO and the Network Operator may follow in relation to voltage control and management;

\(g\) principles and processes for load shedding and restoration;

\(h\) general principles and processes for security management and coordination;

\(i\) processes for the sharing of information between AEMO and the Network Operator to support operational planning processes and the maintenance of Power System Security and Power System Reliability;

\(j\) processes to support Network outage reviews;

\(k\) any reporting requirements to support the processes described in the Operating Protocol; and

\(l\) any other matter AEMO and the Network Operator determine to be necessary for the maintenance of Power System Security and Power System Reliability.

3.1A.3. AEMO and a Network Operator must use reasonable endeavours to

operate and provide information in accordance with the applicable Operating Protocol.

3.1A.4. In accordance with the communication processes specified in an

applicable Operating Protocol, a Network Operator must notify and advise AEMO where it identifies threats to Power System Security or Power System Reliability outside of the Operating Zones specified in the Operating Protocol.

3.1A.5. Where an Operating Protocol has been jointly developed in

accordance with clause 3.1A.1, AEMO must publish an agreed version of the Operating Protocol on the WEM Website as soon as reasonably practicable.

3.1A.6. AEMO must publish the first agreed version of the Operating

Protocol applicable to Western Power's Network on the WEM Website by no later than 1 October 2022.

3.1A.7. In consultation with the relevant Network Operator, AEMO may

redact confidential or sensitive information from an Operating Protocol published on the WEM Website.

3.1A.8. If AEMO and Western Power have not agreed a version of the

relevant Operating Protocol by 1 October 2022, then the document titled ‘Operating Protocol – AEMO and Western Power (Non-Binding)’ bearing the document reference ‘SO_WA_OP-6470’ is the Operating Protocol for the purposes of clause 3.1A.1 and, subject to clause 3.1A.7, must be published by AEMO on the WEM Website.

Voltage Control

3.1A.9. AEMO, in consultation with a Network Operator, may determine a

Secure Operational Voltage Envelope for each Operating Zone.

3.1A.10. When determining a Secure Operational Voltage Envelope under

clause 3.1A.9, AEMO must consider:

\(a\) any voltage standards applicable to the Network Operator’s Network under the relevant Technical Rules;

\(b\) any specific voltage requirements identified by a Network Operator; and

\(c\) the operation of Facilities and other equipment within their defined capability limits.

3.1A.11. To the extent reasonably practicable, a Network Operator must

operate its Network within the Secure Operational Voltage Envelopes specified by AEMO. If a Network Operator cannot operate within the specified Secure Operational Voltage Envelope, it must notify AEMO and provide relevant information and documentation in accordance with the communication processes contemplated by the applicable Operating Protocol.

3.1A.12. AEMO must notify the relevant Network Operator of the Secure

Operational Voltage Envelope for each Operating Zone (as determined by AEMO under clause 3.1A.9) in accordance with the processes described in the Operating Protocol.

Explanatory Note Security Limits are now addressed as part of the Constraints framework.

3.2. Technical Envelope, Security and Equipment Limits

3.2.1. An Equipment Limit means any limit on the operation of a

Facility’s equipment that is provided as Standing Data for the Facility, or otherwise provided to AEMO by a Rule Participant for its Facility's equipment in accordance with clause 3.2.2.

3.2.2. AEMO must record Equipment Limit information in accordance with

the WEM Procedure specified in clause 3.2.7.

3.2.3. [Blank]

3.2.4. [Blank]

Explanatory Note The definition of 'Technical Envelope' is amended to include all the components necessary to practically assess power system security and reliability. The concept of Equipment Limits is expanded to cover normal operating limits, variations in operating limits made through facility offers and overload limits. The intent is that AEMO must respect the relevant limits when maintaining power system security and reliability.

3.2.5. The Technical Envelope represents the limits within which the

SWIS can be operated in each SWIS Operating State. In establishing and modifying the Technical Envelope under clause 3.2.6, AEMO must:

\(a\) respect the relevant Equipment Limits;

\(b\) respect all SWIS Operating Standards;

\(c\) respect all Essential System Service Standards;

\(d\) take into account those parts of the SWIS which are not designed to be operated to the planning criteria in the relevant Technical Rules;

\(e\) respect any applicable Inertia Requirements;

\(f\) respect any applicable Power System Stability Requirements, including any applicable System Strength Requirements; and

\(g\) take into account all other matters AEMO considers relevant to assessing Power System Security and Power System Reliability.

3.2.6. AEMO must establish and modify the Technical Envelope in

accordance with clause 3.2.5 and the WEM Procedure specified in clause

3.2.7.

3.2.7. AEMO must develop a WEM Procedure documenting:

\(a\) the process to be followed by Rule Participants in providing Equipment Limit information to AEMO;

\(b\) the process to be followed by AEMO in establishing and modifying the Technical Envelope, including how AEMO will utilise Equipment Limit information;

\(c\) the processes to be followed by AEMO to enable it to ensure the SWIS operates according to the Technical Envelope applicable to each SWIS Operating State;

\(d\) the process to be followed by AEMO to determine Inertia Requirements; and

\(e\) the process to be followed by AEMO to assess and maintain Power System Stability, including System Strength.

3.2.8. AEMO must ensure the SWIS operates in accordance with the WEM

Procedure specified in clause 3.2.7 and the Technical Envelope for the applicable SWIS Operating State.

Explanatory Note Section 3.2A requires Network Operators to plan and coordinate with AEMO on power system security and power system reliability matters.

3.2A. Security and Reliability Planning and Coordination with Network

Operators

3.2A.1. Where AEMO considers it necessary, AEMO may require a Network

Operator to develop and implement a plan or provide AEMO with information to assist AEMO in ensuring that Power System Security and Power System Reliability is maintained.

3.2A.2. Where AEMO requires a Network Operator to develop a plan under

clause 3.2A.1, the Network Operator must consult with AEMO on the development of the plan and seek AEMO's approval of the plan within the time agreed with AEMO.

3.2A.3. AEMO may, acting reasonably:

\(a\) agree to the implementation of the plan developed by the Network Operator under clause 3.2A.1; or

\(b\) reject the plan developed by the Network Operator under clause

3.2A.1 in which case the Network Operator must make all necessary

amendments to the plan so that it is acceptable to AEMO within the time agreed with AEMO.

3.2A.4. Where AEMO requires a Network Operator to provide information

under clause 3.2A.1, the Network Operator must consult with AEMO as to the scope, manner and form of the information it is required to provide under clause 3.2A.1 and provide the information within the time or times agreed with AEMO.

3.2A.5. Where, following receipt of the information under clause 3.2A.4,

AEMO considers that further information is required, the Network Operator must consult with AEMO as to the scope, manner and form of the further information and provide the information within the time or times agreed with AEMO.

Explanatory Note The operating states of the SWIS are amended to separate the power system reliability standards in the SWIS. A new 'reliable operating state' is inserted as part of the new framework. New power system reliability principles are also included. The adoption of a Reliable Operating State in the SWIS will clarify AEMO’s requirements in terms of identifying and mitigating risks to power system reliability in the SWIS. Assessment of reliability is complex because it varies over different timeframes. For this reason, the framework will be more flexible and the reliability standard implementation process, assessments and criteria which will be used to determine reliability risks, will be set out in a new WEM Procedure.

3.3. Reliable Operating State

3.3.1. The SWIS is in a Reliable Operating State when AEMO has not

initiated any manual load shedding directions, and does not reasonably expect to initiate any manual load shedding directions, in accordance with the WEM Procedure referred to in clause 3.3.2.

Explanatory Note AEMO will be required to develop a new WEM Procedure to assess power system reliability. Until policy positions are developed on the reliability concepts for the SWIS, the reference to Long Term PASA in the WEM Procedure will largely reflect the process outlined in existing Chapter 4 of the WEM Rules.

3.3.2. AEMO must develop and maintain a WEM Procedure which:

\(a\) sets out how AEMO assesses reliability in relation to the following:

i. the Long Term PASA;

ii. the Medium Term PASA;

iii. the Short Term PASA;

iv. Pre-Dispatch Intervals and Dispatch Intervals; and

v. Outage assessment and approval; and

\(b\) describes the events that are included or not included in measuring Unserved Energy in relation to maintaining Power System Reliability and Power System Adequacy.

Explanatory Note Clause 3.3.3 sets out the Power System Reliability Principles. The SWIS is considered to be operating reliably when it is operating in accordance with the Power System Reliability Principles.

3.3.3. The Power System Reliability Principles are:

\(a\) the SWIS should be operated such that it is in a Reliable Operating State to the extent practicable;

\(b\) subject to maintaining Power System Security, where the SWIS is not in a Reliable Operating State, or is not forecast to be in a Reliable Operating State, AEMO must take all reasonable actions to restore or maintain a Reliable Operating State as soon as practicable; and

\(c\) AEMO must assess risks to Power System Adequacy and act to minimise any risks to Power System Adequacy in accordance with the WEM Procedure referred to in clause 3.3.2.

Explanatory Note The cascading 'Normal' and 'High Risk' operating states are removed. Two new operating states, namely 'Satisfactory Operating State' and 'Secure Operating State' are introduced. Note that Schedule C, paragraph 43.2 of the Tranches 2 and 3 Amendments seeks to replace clauses 3.4.1 to 3.4.9 but inadvertently deletes ‘clauses 3.4.1 to 3.9’. The Wholesale Electricity Market Amendment (Miscellaneous Amendments No. 2) Rules 2021 (Miscellaneous 2 Amendments) include further changes to clause 3.4.4 and a new clause 3.4.5A. To ensure the intended outcome, the Amending Rules in the Tranches 2 and 3 Amendments and Miscellaneous 2 Amendments will not commence. Instead the Tranche 6 Amendments will include the following changes to replace the existing clauses 3.4.1-3.4.9 as intended.

3.4. Satisfactory and Secure Operating States

3.4.1. The SWIS is in a Satisfactory Operating State when the SWIS is

operating in accordance with all relevant requirements of the Technical Envelope.

3.4.2. The SWIS is in a Secure Operating State when the SWIS is able to

return to a Satisfactory Operating State following a Credible Contingency Event in accordance with the Power System Security Principles and the requirements of the Technical Envelope.

Explanatory Note There are currently no specified principles in the WEM Rules that AEMO must follow when maintaining Power System Security. The WEM Rules are amended to include operational processes to ensure Power System Security. The WEM Rules are amended to include Power System Security Principles. The introduction of these principles provide a framework for AEMO to provide information to Market Participants regarding the actions it may take under different conditions, and periodically report to the ERA on its ability to meet the timeframe for returning to a Secure Operating State.

3.4.3. The Power System Security Principles are:

\(a\) the power system should be operated such that it is and will remain in a Secure Operating State to the extent practicable;

\(b\) following a Contingency Event, AEMO should take all reasonable actions to return to a Secure Operating State as soon as possible, and in any case within 30 minutes, other than during a Low Reserve Condition or when in an Emergency Operating State;

\(c\) sufficient Inertia should be available to meet applicable Inertia Requirements; and

\(d\) sufficient capability should be maintained at applicable locations in the SWIS to meet the applicable Power System Stability Requirements, including any System Strength Requirements.

Explanatory Note Clause 3.4.4 is amended so that AEMO is required to consult with a Network Operator prior to giving a direction to that Network Operator in respect to the operation of its network equipment.

3.4.4. In order to restore and maintain Power System Security or Power

System Reliability, AEMO may, in addition to the provisions specified in Chapter 7:

\(a\) reject Planned Outages that have not yet commenced;

\(b\) issue Outage Recall Directions;

\(c\) utilise the overload capacity of Scheduled Facilities (as indicated in Standing Data);

\(d\) direct Facilities to adjust output or operate in a particular way, in accordance with the Registered Generator Performance Standards applicable to the Facility;

\(e\) direct a Network Operator, in which case AEMO must first consult with the relevant Network Operator, to operate network equipment, or equipment under a Network Operator’s control or direction, in specific ways; or

\(f\) direct a Network Operator, in which case AEMO must first consult with the relevant Network Operator, to disconnect generating equipment, load and/or other equipment connected to the Network Operator’s network.

3.4.5. AEMO may take any other actions it considers are required,

consistent with good electricity industry practice, in order to maintain Power System Security or Power System Reliability, having regard to the provisions specified in Chapter 7.

Explanatory Note Clause 3.4.5A requires AEMO to record details of any directions issued to Network Operators or in respect of a Facility as specified in clause 3.4.4.

3.4.5A. Where AEMO issues a direction under clauses 3.4.4(d), 3.4.4(e)

or 3.4.4(f) or takes any other action under clause 3.4.5, AEMO must record:

\(a\) the date and time of the direction or action;

\(b\) the name of the Registered Facility or relevant equipment impacted by the direction or action;

\(c\) the nature of the direction or action; and

\(d\) the reasons for the direction or action.

Explanatory Note Clause 3.4.6(a) is intended to be a civil penalty provision.

3.4.6. Rule Participants must:

\(a\) subject to clause 3.4.7, comply with directions issued by AEMO in accordance with clause 3.4.4; and

\(b\) use reasonable endeavours to assist AEMO to ensure the SWIS remains in a Satisfactory Operating State or Secure Operating State, including providing information and coordinating with AEMO on directions as required by AEMO.

3.4.7. A Rule Participant is not required to comply with a direction

issued by AEMO, in accordance with clause 3.4.4, if such compliance would endanger the safety of any person, damage equipment, or breach any applicable law.

3.4.8. Where a Rule Participant cannot comply with a direction issued by

AEMO in accordance with clause 3.4.4 it must notify AEMO immediately and provide the reasons why it cannot comply with the direction.

Explanatory Note The 'Emergency Operating State' is retained but modified to take into account the new 'Satisfactory' and 'Secure' operating states, including making the Emergency Operating State less prescriptive and including more detail in a WEM Procedure.

3.5. Emergency Operating State

3.5.1. The SWIS is in an Emergency Operating State when AEMO considers

that circumstances exist on the SWIS that impact the ability of AEMO to operate the SWIS as intended in accordance with these WEM Rules.

3.5.1A. AEMO must develop a WEM Procedure which sets out conditions

under which AEMO may declare an Emergency Operating State. To avoid doubt, the WEM Procedure referred to in this clause 3.5.1A does not limit the ability of AEMO to declare an Emergency Operating State.

3.5.2. An Emergency Operating State as defined in these WEM Rules does

not necessarily correspond to a civil emergency, or emergencies as defined in legislation but may commence as a result of these.

3.5.3. AEMO must ensure that when it becomes aware of any actions by a

Rule Participant that in AEMO's opinion would be reasonably likely to lead to an Emergency Operating State, AEMO takes all actions necessary and within its control to prevent the Rule Participant engaging in such actions.

3.5.4. When the SWIS is in an Emergency Operating State, AEMO must not

require Registered Facilities to operate inconsistently with their Equipment Limits for the Emergency Operating State.

Explanatory Note Clauses 3.5.5, 3.5.6, and 3.5.8 are amended to reflect that the SWIS can be in an Emergency Operating State and a Satisfactory Operating State at the same time.

3.5.5. When the SWIS is in an Emergency Operating State, AEMO may in

addition to any other ability AEMO has:

\(a\) direct any Rule Participant to provide Essential System Services where they are capable of doing so;

\(b\) issue directions to Rule Participants to operate Registered Facilities at a particular level or in a particular way; and

\(c\) take other actions as considered necessary, consistent with good electricity industry practice, in order to return the SWIS from the Emergency Operating State.

3.5.6. AEMO must ensure the SWIS returns from an Emergency Operating

State as soon as possible.

3.5.7. Subject to clause 3.5.6, while operating under an Emergency

Operating State, AEMO must attempt to ensure the SWIS operates according to the principles set out in clause 7.2.4, to the extent that is reasonably practicable to do so in the circumstances.

3.5.8. When the SWIS is in an Emergency Operating State, Rule

Participants must:

\(a\) subject to clause 3.5.9, comply with directions issued by AEMO in accordance with clauses 3.4.4 and 3.5.5; and

\(b\) otherwise, use their best endeavours to assist AEMO to ensure the SWIS returns from the Emergency Operating State.

3.5.9. A Rule Participant is not required to comply with any directions

issued by AEMO, in accordance with clause 3.5.5, if such compliance would endanger the safety of any person, damage equipment, or breach any applicable law.

3.5.10. Where a Rule Participant cannot comply with a direction issued

by AEMO in accordance with clause 3.5.5, it must notify AEMO immediately and provide AEMO with the reasons why it cannot comply with the direction.

Explanatory Note Replacement section 3.6 outlines the obligations of AEMO and Network Operators in relation to managing under frequency load shedding on the SWIS. AEMO is required to prepare and publish an UFLS Requirements document to set out the aggregate under frequency load shedding requirements for the SWIS taking into account the SWIS Frequency Operating Standards. Network Operators are required to design and develop UFLS specifications to adhere to the requirements set out by AEMO. Section 3.6 also sets out obligations for AEMO and Network Operators to consult with each other when amendments to UFLS Requirements are necessary and to monitor ongoing performance against these documents. In practice, when a frequency event occurs on the power system resulting in frequency dropping below the levels identified in the Frequency Operating Standard, the under frequency load shedding schemes will operate in accordance with the parameters in the UFLS Requirements and UFLS Specification documents. Other WEM rules (e.g. new section ### 3.2A) are already in place to ensure appropriate coordination between AEMO as the System Operator and Network Operators.

3.6. Under Frequency Load Shedding

3.6.1. AEMO must:

\(a\) subject to clause 3.6.3, determine the UFLS Requirements, taking into account the SWIS Frequency Operating Standards; and

\(b\) publish the UFLS Requirements, and any amendments to them, on the WEM Website.

3.6.2. The UFLS Requirements must contain guidance to enable each

Network Operator whose Network is impacted by the UFLS Requirements to design and implement automatic under frequency load shedding schemes that support Power System Security in respect of their Network. The guidance must include:

\(a\) the quantity of load required for shedding, or guidance on how to determine the required quantities;

\(b\) prioritisation of load types;

\(c\) details of any staging requirements;

\(d\) initiation criteria;

\(e\) speed of operation;

\(f\) any required variation in settings or functional requirements based on conditions in the SWIS; and

\(g\) any other relevant matters required to support Power System Security.

3.6.3. AEMO must consult in good faith with each Network Operator whose

Network the UFLS Requirements apply to when AEMO determines the UFLS Requirements in accordance with clause 3.6.1 and periodically reviews the UFLS Requirements under clause 3.6.11.

3.6.4. AEMO or a Network Operator may propose an amendment to the UFLS

Requirements. In respect of a proposed amendment:

\(a\) where AEMO is proposing the amendment, AEMO must consult in good faith with each Network Operator whose Network is likely to be impacted by the proposed amendment;

\(b\) where a Network Operator is proposing the amendment, the Network Operator must consult in good faith with AEMO and each other Network Operator whose Network is likely to be impacted by the proposed amendment; and

\(c\) AEMO must only progress the proposed amendment where AEMO and each Network Operator whose Network is likely to be impacted by the proposed amendment agree, acting reasonably, that the proposed amendment is reasonably necessary.

3.6.5. Each Network Operator whose Network the UFLS Requirements apply

to must develop and maintain an UFLS Specification. The UFLS Specification must set out how the Network Operator's schemes meet the UFLS Requirements.

3.6.6. Each Network Operator must submit the UFLS Specification that it

has developed for its Network under clause 3.6.5 to AEMO for approval, and following the initial approval of the UFLS Specification, whenever:

\(a\) the Network Operator seeks to amend its UFLS Specification; or

\(b\) amendments are required as a result of an amendment to the UFLS Requirements.

3.6.7. Where AEMO receives an UFLS Specification from a Network Operator

under clause 3.6.6, AEMO must, within a reasonable timeframe agreed with the relevant Network Operator, determine whether to approve or reject the UFLS Specification or the amendment to it, as applicable. Where AEMO:

\(a\) approves the UFLS Specification or the amendment to it, as applicable, AEMO must notify the relevant Network Operator that the UFLS Specification or the amendment to it, as applicable, has been approved; or

\(b\) rejects the UFLS Specification or the amendment to it, as applicable, AEMO must notify the relevant Network Operator:

i. that the UFLS Specification or the amendment to it, as applicable, has been rejected; and

ii. the amendments to the UFLS Specification that AEMO reasonably considers are required for the UFLS Specification to meet the UFLS Requirements.

3.6.8. Where a Network Operator receives a notice from AEMO under clause

3.6.7(b), the Network Operator:

\(a\) may consult with AEMO on the amendments AEMO considers are reasonably required to the UFLS Specification, both parties acting reasonably and in good faith; and

\(b\) must resubmit the UFLS Specification incorporating the amendments requested by AEMO under clause 3.6.7(b)(ii) or as agreed with AEMO pursuant to clause 3.6.8(a), as applicable, to AEMO for approval under clause 3.6.7.

3.6.9. Each Network Operator must implement and maintain systems,

schemes or standards in accordance with its UFLS Specification, and must agree a timeframe with AEMO for changes to its systems, schemes, or standards triggered by any changes to its UFLS Specification.

3.6.10. Each Network Operator must, in respect of its Network, provide a

report to AEMO on the compliance of its UFLS Specification with the UFLS Requirements:

\(a\) annually, on the projected ability to meet the requirements over a future ten-year horizon; and

\(b\) within a timeframe agreed with AEMO, both parties acting reasonably, following each under frequency load shedding event.

3.6.11. Without limiting AEMO's ability to amend the UFLS Requirements

in accordance with this section 3.6, AEMO must review the UFLS Requirements to ensure they are appropriate and consistent with the requirements of this section 3.6 within three years of the date the UFLS Requirements are first published by AEMO under clause 3.6.1(b) and then at least once in every three-year period from completion of the previous review.

Explanatory Note Section 3.7 deals with System Restart, including determining the System Restart Standard and procurement of System Restart Service contracts. System Restart service is an Essential System Service that allows the SWIS to be restored by black start equipped capacity – i.e. capacity that does not require energy from the Network to start – following a blackout. Section 3.7 does not deal with the recovery of costs for the provision of System Restart Services. Those arrangements are provided in the amendments for Market Settlement published as part of Tranche 2 and Tranche 3 Amendments. Clause 3.10.6 has been moved to and modified under clause 3.7.1 to cover the System Restart Service Standard. The current framework has been expanded to refer to a ‘major supply disruption’ as an event requiring System Restart Service.

3.7. System Restart

System Restart Standard and System Restart Plan

3.7.1. AEMO must determine the System Restart Standard in accordance

with clause 3.7.2.

3.7.2. The System Restart Standard:

\(a\) must identify the minimum length of time for which a System Restart Service may be required to operate continuously following a system shutdown or major supply disruption;

\(b\) must specify the technical requirements that a Registered Facility must demonstrate to be eligible to provide a System Restart Service;

\(c\) must include guidelines addressing the diversity of System Restart Services, including diversity of locations within the SWIS;

\(d\) must include requirements for mitigating against the risk of unavailability of any System Restart Service during a system shutdown or major supply disruption; and

\(e\) may include any other matters that AEMO determines are necessary to ensure the SWIS is restarted in the event of a system shutdown or major supply disruption.

3.7.3. AEMO must develop and maintain the System Restart Plan for the

purposes of managing and coordinating restart and restoration of the SWIS in the event of a system shutdown or major supply disruption.

3.7.4. The System Restart Plan must:

\(a\) be consistent with the System Restart Standard;

\(b\) cover the whole of the SWIS but may consist of one or more separable components; and

\(c\) take into account any Local Black Start Procedures.

3.7.5. AEMO must in:

\(a\) developing the System Restart Plan in accordance with clause

3.7.3; and

\(b\) making any revisions to the System Restart Plan pursuant to clauses 3.7.10 or 3.7.11,

consult in good faith with each Network Operator that AEMO considers may be impacted by the System Restart Plan, or the proposed revision to it, to assist AEMO to ensure that the System Restart Plan is effective and achievable, including in relation to viable restart paths.

3.7.6. Each Network Operator that may be impacted by the System Restart

Plan must conduct any studies or analyses that are reasonably required to provide input into the System Restart Plan, within a reasonable timeframe to be agreed with AEMO.

3.7.7. AEMO must, in developing, and making revisions to, the System

Restart Plan, take into account any input provided by a Network Operator under clause 3.7.6, including any information in relation to:

\(a\) viable restart paths; and

\(b\) following a successful restart, the restoration of any sensitive Loads on the Network Operator’s Network.

3.7.8. Where a Network Operator considers that the conditions on its

Network have changed sufficiently to require changes to the System Restart Plan, the Network Operator:

\(a\) may request AEMO to review the System Restart Plan; and

\(b\) must, where a request is made by the Network Operator under clause

3.7.8(a), provide details of the changes to the conditions on its

Network with the request.

3.7.9. Where the System Restart Plan, or any revision to it, requires a

Network Operator to change or modify any Network equipment, AEMO and the Network Operator must agree a timeframe that is sufficient for the Network Operator to make any such change or modification, including time to undertake appropriate and reasonable testing.

3.7.10. Where AEMO:

\(a\) has received a request from a Network Operator under clause 3.7.8; or

\(b\) considers, for any reason, that the System Restart Standard (or any part of it) is no longer achievable or effective,

AEMO must review the System Restart Standard or the System Restart Plan, or both, if required, and make any revisions that AEMO considers are necessary to ensure that the System Restart Standard and the System Restart Plan are achievable and effective for restarting the SWIS in the event of a system shutdown or major supply disruption.

3.7.11. Without limiting the frequency of reviews AEMO may undertake in

accordance with clause 3.7.10, AEMO must review the System Restart Standard and the System Restart Plan to ensure they are appropriate and consistent with the requirements of this section 3.7 within three years of the commencement of the System Restart Standard and System Restart Plan and then at least once in every three-year period from completion of the previous review.

Local Black Start Procedures

3.7.12. AEMO must publish guidelines for developing Local Black Start

Procedures on the WEM Website.

3.7.13. Unless exempted by AEMO (in its absolute discretion), a Market

Participant with a Registered Facility that is an energy producing system must:

\(a\) develop and maintain Local Black Start Procedures in accordance with the guidelines published by AEMO under clause 3.7.12 and any modifications published under clause 3.7.16; and

\(b\) promptly provide the Local Black Start Procedures to AEMO, including any amendments to them.

3.7.14. Local Black Start Procedures must provide sufficient information

to enable AEMO to understand the likely condition and capabilities of Registered Facilities following a system shutdown or major supply disruption such that AEMO is able to develop and maintain the System Restart Plan.

3.7.15. If AEMO forms the view, acting reasonably, that it would be

useful for the effective operation of the System Restart Plan, AEMO must provide each Network Operator with the Local Black Start Procedures that AEMO considers are relevant to the Network Operator.

3.7.16. Following a review conducted under clause 3.7.10 or clause

3.7.11, AEMO may modify the guidelines for Local Black Start Procedures

by publishing the modified guidelines on the WEM Website, which are deemed to take effect from the date of publication or later date notified by AEMO.

3.7.17. Following any modification to the guidelines for Local Black

Start Procedures, AEMO may require a Market Participant with a Registered Facility that is an energy producing system to amend the Local Black Start Procedures for the Registered Facility. Any such request by AEMO must:

\(a\) set out the reasons for the requested amendments; and

\(b\) specify a timeframe, which must be reasonable having regard to the extent and complexity of the request, by when the amendments to the Market Participant's Local Black Start Procedures for the Registered Facility must be made.

Explanatory Note The System Restart Standard will be published by AEMO. However, the System Restart Plan and any other operational plans AEMO develops and maintains to restart the SWIS will be confidential to relevant parties such as AEMO, a Network Operator, the Economic Regulation Authority and the Coordinator of Energy, due to the likelihood of those plans containing confidential information regarding sensitive Loads. The confidentiality status assigned to the System Restart Plan may need to be amended following the review by EPWA of the market information framework in Chapter 10 of the WEM Rules.

Publication

3.7.18. AEMO must publish the System Restart Standard, including any

revisions following a review in accordance with clause 3.7.10 or clause

3.7.11, on the WEM Website.

Explanatory Note Clause 3.7.19 is updated to reflect the revised Market Information Framework. AEMO develops the System Restart Plan and as such will be the Information Manager for this type of Market Information and will be able to disclose as appropriate or required.

3.7.19. The System Restart Plan, and any revisions following a review in

accordance with clause 3.7.10 or clause 3.7.11, are Confidential Information. Notwithstanding this classification, AEMO may disclose information contained in the System Restart Plan with System Restart Service Providers and prospective System Restart Service Providers, where AEMO considers that disclosure would support provision of a System Restart Service.

Explanatory Note Clauses 3.7.20 to 3.7.24 deal with obligations of Network Operators and Market Participants to support AEMO with the implementation of the System Restart Plan in the event it is enacted.

Obligations to Restart the SWIS

3.7.20. AEMO must use its reasonable endeavours to ensure the SWIS is

restarted and restored in the event of a system shutdown or major supply disruption.

3.7.21. In performing its obligation under clause 3.7.20, AEMO must,

when coordinating with Network Operators regarding the restoration of the SWIS following a successful restart, have reasonable regard to information provided by Network Operators.

3.7.22. Each Network Operator must use its reasonable endeavours to

ensure that, at all times, its Network is capable of being restarted or restored in accordance with the System Restart Plan in the event of a system shutdown or major supply disruption.

3.7.23. Each Network Operator must take all actions necessary to support

and enable AEMO to implement the System Restart Plan in the event the System Restart Plan is enacted, including by:

\(a\) complying with any directions from AEMO;

\(b\) providing timely information to AEMO on the status of its Network and whether the System Restart Plan may need to be adjusted to address the actual conditions on the Network at that time;

\(c\) coordinating with AEMO during the restoration of the SWIS on revisions that may be required to the System Restart Plan to address the actual conditions on the Network during the restoration; and

\(d\) cooperating with any requests from AEMO, including using best endeavours to provide any information requested by AEMO within the time specified by AEMO.

3.7.24. Where directed by AEMO, a Market Participant must take all

actions necessary to support the enactment of the System Restart Plan, including by:

\(a\) committing or de-committing any, or all, of its Facilities, or individual energy producing systems within its Facilities, or operating them in a manner required by AEMO;

\(b\) operating a Facility or individual energy producing system or equipment within a Facility in a particular manner, consistent with the relevant Registered Generator Performance Standards or Standing Data for that Facility;

\(c\) providing an Essential System Service if the Facility is accredited for that Essential System Service; and

\(d\) cooperating with any requests from AEMO, including using best endeavours to provide any information requested by AEMO within the time specified by AEMO.

Explanatory Note Clause 3.7.25 requires AEMO must use reasonable endeavours to procure System Restart Services. If AEMO is unable to procure System Restart Services, then it will use emergency direction powers in the event of a major supply disruption or system shutdown to direct capable generators to restart the system.

Procurement of System Restart Services

3.7.25. AEMO must use its reasonable endeavours to procure System

Restart Services to meet the System Restart Standard.

3.7.26. AEMO may enter into a System Restart Service Contract with a

Market Participant.

3.7.27. AEMO must prepare a specification for a System Restart Service

requirement to meet the System Restart Standard in accordance with the WEM Procedure specified in clause 3.7.40.

3.7.28. AEMO must publish a call for submissions for the provision of

System Restart Service, no later than 20 Business Days prior to the proposed closing date for submissions, on the WEM Website and at least one major tender portal.

3.7.29. AEMO must include in the call for submissions referred to in

clause 3.7.28:

\(a\) the date and time for lodgement of submissions;

\(b\) contact details for AEMO;

\(c\) a description of the technical requirements, including any locational requirements, for the System Restart Service;

\(d\) the location on the WEM Website of the standard form contract referred to in clause 3.7.30; and

\(e\) the location on the WEM Website of the specification prepared by AEMO in accordance with clause 3.7.27 for the System Restart Service.

Explanatory Note Clause 3.7.30 sets out the minimum mandatory information to be provided by a Market Participant in the form of a standard form contract for the provision of System Restart Service.

3.7.30. AEMO must develop, maintain and publish on the WEM Website, a

standard form contract for the provision of a System Restart Service which must include, at a minimum, the following fields:

\(a\) the name of the Market Participant and its Registered Facility that is proposed to provide the System Restart Service;

\(b\) the offer price for each cost component specified by AEMO, which may include, where applicable:

i. a price to cover the cost of capital works;

ii. a service availability price, including for ongoing maintenance works;

iii. a service testing price; and

iv. a service usage price;

\(c\) the proposed contract term for the System Restart Service;

\(d\) the availability requirements for the System Restart Service; and

\(e\) a standard list of terms and conditions to apply to the contract.

3.7.31. A submission made by a prospective System Restart Service

Provider in response to a call for submissions under clause 3.7.28 must:

\(a\) be made in good faith;

\(b\) incorporate the standard form contract published by AEMO in accordance with clause 3.7.30;

\(c\) be capable of being accepted by AEMO and binding on the Market Participant and AEMO; and

\(d\) include the cost information and any assumptions used to calculate the proposed offer for the provision of the System Restart Service.

3.7.32. Any costs incurred by a prospective System Restart Provider to

determine the adequacy and capability of its equipment to assist it in making a valid submission under clause 3.7.31 are to be borne by that prospective System Restart Provider. To avoid doubt, this includes the costs of any negotiations with a Network Operator in respect to any Network equipment augmentation that may assist the prospective System Restart Service Provider in making a valid submission.

3.7.33. Where a prospective System Restart Service Provider initiates

discussions with a Network Operator with respect to a proposed submission made by the prospective System Restart Service Provider under clause 3.7.31, the Network Operator must negotiate in good faith with the prospective System Restart Service Provider with respect to identifying and, if possible, resolving issues that would prevent the delivery of effective System Restart Services proposed by the prospective System Restart Service Provider.

Sharing System Restart Service submissions

3.7.34. Where a prospective System Restart Service Provider makes a

submission under clause 3.7.31, the Market Participant consents to AEMO sharing information contained in the submission in accordance with clause 3.7.35.

Explanatory Note The information in a System Restart Service submission may also need to be shared with other entities such as the Coordinator for Energy and the Economic Regulation Authority. Clause 3.7.35 may therefore be further amended as part of EPWA's review of the market information framework.

3.7.35. AEMO may, as part of assessing a submission made under clause

3.7.31, provide details of the submission, except for the offer price

and any other commercially sensitive information, to each relevant Network Operator to assist AEMO to determine whether the proposal in the submission is technically feasible, including whether any augmentation of the Network would be required to make the proposal technically feasible.

Explanatory Note Clauses 3.7.36 and 3.7.37 set out the obligations on AEMO to notify Market Participants and the market of the awarding of System Restart Service Contracts and the forming of a System Restart Service Contract.

Awarding System Restart Service Contract

3.7.36. Where AEMO accepts a submission made under clause 3.7.31, it

must:

\(a\) notify the Market Participant within five Business Days of accepting the submission; and

\(b\) publish a notice on the WEM Website within five Business Days of accepting the submission.

3.7.36A. AEMO and Market Participants, when entering into a System

Restart Service Contract, must use the standard form contract published under clause 3.7.30.

3.7.36B. AEMO may allow a System Restart Service contract to vary from

the standard form contract where AEMO considers that those variations are reasonably required, having regard to the specific characteristics of the Facility providing the System Restart Service.

3.7.37. AEMO's acceptance of a submission made under clause 3.7.31 forms

a binding System Restart Service Contract between the Market Participant and AEMO.

Explanatory Note Clause 3.7.38 describes the obligations of Network Operators in connection with the assessment of submissions by AEMO, including conducting analysis and supporting testing.

Network Operator’s Obligations to Facilitate System Restart Services

3.7.38. A Network Operator must:

\(a\) provide any information to AEMO and conduct any analysis which AEMO reasonably requires in order for AEMO to assess the capability of a proposed System Restart Service to meet the System Restart Standard; and

\(b\) where it is reasonable and practicable to do so, participate in or facilitate testing of a System Restart Service proposed to be provided by a prospective System Restart Service Provider, and any further testing once a System Restart Service Provider is contracted to provide a System Restart Service, to confirm the ongoing availability of the System Restart Service in accordance with the terms of the System Restart Service Contract.

Recovery of Costs

Explanatory Note Clause 3.7.39 requires each entity (AEMO, Network Operator or System Restart Service Provider) to bear its own costs of any activities in relation to System Restart Service where the costs of that activity are not recoverable under these WEM Rules or the System Restart Service contract.

3.7.39. Except to the extent specified in these WEM Rules or the System

Restart Service Contract, AEMO, each Network Operator and each System Restart Service Provider must bear their own costs in respect of:

\(a\) a System Restart Service Contract (including, to avoid doubt, the preparation or negotiation of it in accordance with this section 3.7); and

\(b\) the provision of a System Restart Service.

Explanatory Note Clause 3.7.40 describes the methodologies and processes AEMO is required to document in a WEM Procedure.

3.7.40. AEMO must document in a WEM Procedure:

\(a\) the methodology and processes it uses to determine the System Restart Standard and System Restart Plan;

\(b\) any matters, in addition to the requirements specified in clause

3.7.30, that the standard form contract for System Restart Service

submissions may address;

\(c\) the factors AEMO may consider when determining whether changes from the standard form contract are reasonably required for the purposes of clause 3.7.36B;

\(d\) the processes to be followed by AEMO and Rule Participants in relation to the procurement of System Restart Services by AEMO;

\(e\) the methodologies and processes to be followed by AEMO in:

i. determining whether a System Restart Service submission is valid;

ii. analysing and selecting System Restart Service submissions to meet the System Restart Standard; and

iii. accepting a System Restart Service submission to become an effective System Restart Service Contract;

\(f\) the processes to be followed by AEMO in conducting a review under clauses 3.7.10 and 3.7.11 and consulting with Network Operators; and

\(g\) any other matters AEMO considers as reasonably required in relation to System Restart Service provision or operation.

3.8. Investigating Incidents in the SWIS

3.8.1. AEMO must investigate any incidents in the operation of equipment

comprising the SWIS that:

\(a\) endangers Power System Security or Power System Reliability to a significant extent; or

\(b\) causes significant disruption to the operation of the Central Dispatch Process set out in section 7.6; and

\(c\) AEMO considers has had, or had the potential to have had, a significant impact on the effectiveness of the market.

3.8.2. Where an incident referred to in clause 3.8.1 occurs:

(a) AEMO may require the Rule Participants involved in the incident to provide data, information or a report on the incident within a reasonable time period specified by AEMO;

\(b\) AEMO may require a Network Operator to provide data, information or a report (including, without limitation, from any measuring equipment) in respect of the incident within a reasonable time period specified by AEMO;

\(c\) a Rule Participant must comply with any request by AEMO for data, information or a report under clause 3.8.2(a) or clause 3.8.2(b); and

\(d\) AEMO may conduct its own investigation of, or engage independent experts to report on, the incident.

3.8.2A. Following the investigation, AEMO must provide a report

detailing its findings to the Economic Regulation Authority. The report must identify any information that cannot be made public, or which AEMO considers should be removed, from any public version of the report.

3.8.3. Following the investigation, AEMO must publish a report detailing

its findings and including:

\(a\) any reports provided in accordance with clause 3.8.2(d) after AEMO has removed any information that cannot be made public under these WEM Rules or which AEMO considers should not be released; and

\(b\) a description of any changes to the WEM Rules or WEM Procedures that AEMO considers necessary to prevent the future occurrence of similar incidents.

3.8.4. Where AEMO considers that changes in the WEM Rules are necessary,

it must draft a suitable Rule Change Proposal and submit it using the rule change process in sections 2.5 to 2.8.

3.8.5. Where AEMO considers that changes in a WEM Procedure which these

WEM Rules contemplate will be developed by AEMO are necessary, it must draft a suitable Procedure Change Proposal and progress it using the Procedure Change Process in section 2.10.

3.8.5A. Where AEMO has recommended any changes to the WEM Procedures

which these WEM Rules contemplate will be developed by the Economic Regulation Authority, then if the Economic Regulation Authority considers they are necessary, it must draft a suitable Procedure Change Proposal and progress it using the Procedure Change Process in section 2.10.

3.8.6. Where AEMO has recommended any changes to the WEM Procedures

which these WEM Rules contemplate will be developed by a Network Operator, then if the Network Operator considers they are necessary, it must draft a suitable Procedure Change Proposal and progress it using the Procedure Change Process in section 2.10.

3.8.7. Where AEMO recommends to the Economic Regulation Authority

pursuant to clause 3.8.5A or a Network Operator pursuant to clause 3.8.6 that changes to a WEM Procedure are necessary, the Economic Regulation Authority or the Network Operator, as applicable, must publish:

\(a\) the changes recommended by AEMO; and

\(b\) its decision and reasons as to whether the changes recommended by AEMO are necessary,

on the Economic Regulation Authority's or the Network Operator's website, as applicable.

Explanatory Note Section 3.8A outlines a new framework for contingency events. It introduces new definitions for a Contingency Event, Non-credible Contingency Event and Credible Contingency Event. It also introduces a mechanism for AEMO to: reclassify Non-credible Contingency Events to Credible Contingency Events; and reclassify Credible Contingency Events back to Non-credible Contingency Events when the conditions that gave rise to it are no longer relevant.

3.8A. Contingency Events

3.8A.1. A Contingency Event is an event affecting the SWIS which AEMO

expects would be likely to involve:

\(a\) the failure or removal from operational service of one or more energy producing units, Facilities and/or Network elements; or

\(b\) an unplanned change in load, Intermittent Generation or other elements of the SWIS not controlled by AEMO.

3.8A.2. A Credible Contingency Event means one or more Contingency

Events, the occurrence of which AEMO considers in accordance with the WEM Procedure referred to in clause 3.8A.4 to be reasonably possible in the prevailing circumstances, taking into account the Technical Envelope. Without limitation, examples of Credible Contingency Events include:

\(a\) the unexpected automatic or manual disconnection of, or the unplanned change in output of, one or more operating energy producing units or Facilities;

\(b\) the unexpected disconnection of one or more major items of Network equipment; or

\(c\) Non-credible Contingency Events reclassified as Credible Contingency Events in accordance with the WEM Procedure referred to in clause 3.8A.4.

3.8A.3. A Non-credible Contingency Event means a Contingency Event other

than a Credible Contingency Event. Without limitation, examples of Non-credible Contingency Events include simultaneous disruptive events such as:

\(a\) multiple Facility failures; or

\(b\) failure of multiple items of Network equipment.

3.8A.4. AEMO must develop and maintain a WEM Procedure which sets out:

\(a\) the process for determination and classification of Credible Contingency Events;

\(b\) the Contingency Reclassification Conditions;

\(c\) the factors that AEMO may take into account in reclassifying a Contingency Event in accordance with this section 3.8A;

\(d\) the process for reclassifying a Non-credible Contingency Event as a Credible Contingency Event;

\(e\) the procedures for notifying affected Rule Participants under clause 3.8A.7, including the time by which a notification must be given; and

\(f\) a description of the Contingency Events that are generally considered as Credible Contingency Events, taking into consideration relevant requirements in the Technical Rules of the relevant Network Operator.

3.8A.5. AEMO must:

\(a\) determine a Credible Contingency Event; and

\(b\) reclassify a Non-credible Contingency Event as a Credible Contingency Event,

in accordance with the WEM Procedure referred to in clause 3.8A.4.

3.8A.6. Where AEMO determines a new Credible Contingency Event, or

reclassifies a Non-credible Contingency Event as a Credible Contingency Event, AEMO must:

\(a\) publish the determination or reclassification on the WEM Website; and

\(b\) notify affected Rule Participants in accordance with the WEM Procedure referred to in clause 3.8A.4 of all relevant information, including but not limited to:

i. the name of the new Credible Contingency Event;

ii. a description of the new Credible Contingency Event;

iii. any relevant timeframes in respect of the new Credible Contingency Event; and

iv. if applicable, the Contingency Reclassification Conditions that gave rise to the reclassification of a Non-credible Contingency Event as a Credible Contingency Event.

3.8A.7. If any of the information provided to Rule Participants in

accordance with clause 3.8A.6 changes in any material respect, AEMO must publish the changes on the WEM Website and notify the affected Rule Participants in accordance with the WEM Procedure referred to in clause

3.8A.4.

Explanatory Note Section 3.9 sets out the new definitions for Essential System Services (ESS). ESS encompasses all of FCESS and NCESS.

Essential System Services

3.9. Definitions of Essential System Services

3.9.1. Regulation is the service, measured in MW, of frequently

adjusting the Injection or Withdrawal of a Facility in accordance with an AEMO centralised control scheme in order to assist in maintaining the SWIS Frequency according to the Frequency Operating Standards.

3.9.2. Regulation Raise is a Regulation service, measured in MW of

response capability, that operates to raise the SWIS Frequency.

3.9.3. Regulation Lower is a Regulation service, measured in MW of

response capability, that operates to lower the SWIS Frequency.

3.9.4. Contingency Reserve is the service, measured in MW, of holding

response capability associated with a Facility in reserve so that the relevant Facility can rapidly adjust Injection or Withdrawal in order to assist in maintaining the SWIS Frequency according to the Frequency Operating Standards after a Contingency Event.

3.9.5. Contingency Reserve Raise is a Contingency Reserve service,

measured in MW of response capability, that enables a Facility to adjust Injection or Withdrawal to raise the SWIS Frequency.

3.9.6. Contingency Reserve Lower is a Contingency Reserve service,

measured in MW of response capability, that enables a Facility to adjust Injection or Withdrawal to lower the SWIS Frequency.

3.9.7. Rate of Change of Frequency Control Service (“**RoCoF Control

Service**”) is the service, measured in MWs, of providing Inertia which provides instantaneous response to slow down the rate of change of the SWIS Frequency.

3.9.8. System Restart Service is the service of an Energy Producing

System starting without requiring energy to be supplied from a Network to assist in the re-energisation of the SWIS in the event of system shutdown, or a major supply disruption.

Explanatory Note Clause 3.9.9 is amended to better define Non-Co-optimised Essential System Service. Clause 3.9.9 has also been amended by the Tranche 5 Amendments (Schedule B). However, as this section 3.9 reflects the amendments that will apply from the start of the new market, please refer to the Tranche 5 Amendments to see the amendments to clause 3.9.9 that will apply until that time.

3.9.9. Non-Co-optimised Essential System Service ("NCESS") is an

Essential System Service that is procured in accordance with section

3.11B.

Explanatory Note Section 3.10 sets out the new ESS Standards. However, as this section 3.10 reflects the amendments contained in the Tranches 2 and 3 Amendments, as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last, please refer to the Miscellaneous Amendments No. 2 to see the changes to section 3.10 (i.e. clause 3.10.6 is deleted) that will apply until the Tranches 2 and 3 Amendments to this section 3.10 commence.

3.10. Essential System Service Standards

3.10.1. Subject to clause 3.12.2, AEMO must schedule and dispatch

sufficient Regulation to ensure that the frequency in the SWIS is maintained within the Normal Operating Frequency Band and the Normal Operating Frequency Excursion Band in accordance with Chapter 3B.

3.10.2. When determining the quantity of Regulation to schedule and

dispatch in accordance with clause 3.10.1, AEMO must take into account the historic and expected variability of the frequency in the SWIS.

3.10.3. Subject to clause 3.12.2, AEMO must schedule and dispatch

sufficient Contingency Reserve and RoCoF Control Service to ensure that, in combination, following a Credible Contingency Event the frequency in the SWIS is maintained within:

\(a\) the relevant Frequency Band; and

\(b\) the RoCoF Safe Limit.

Explanatory Note Section 3.11 sets out the mechanism by which AEMO will determine the FCESS Requirements for the SWIS. It also sets out the circumstances which require AEMO to trigger the Supplementary Essential System Service Mechanism (SESSM). Section 3.11 has also been amended by the Tranche 5 Amendments (Schedule B). However, as this section 3.11 reflects the amendments that will apply from (or close to) the start of the new market, please refer to the Tranche 5 Amendments to see the amendments to section 3.11 that will apply until that time.

3.11. Determining & Procuring Frequency Co-optimised Essential System

Service Requirements

Explanatory Note Clauses 3.11.1 to 3.11.6 specify the conditions under which AEMO will trigger the SESSM due to a shortfall. Accreditation shortfalls will trigger the SESSM when the PASA indicates a shortfall but no new entry will occur. Participation shortfalls will trigger the SESSM where AEMO regularly directs Market Participants to commit Facilities to provide a FCESS.

3.11.1. Where the quantities of any Frequency Co-optimised Essential

System Service expected to be required in a Dispatch Interval, or the combined quantities of more than one Frequency Co-optimised Essential System Service which are to be provided by the same accredited Facility, is greater than the accredited Essential System Service capacity for that Frequency Co-optimised Essential System Service under the appropriate load forecast as determined in accordance with the WEM Procedure referred to in clause 3.17.11 ("FCESS Accreditation Shortfall"), AEMO must identify:

\(a\) the times of the affected Dispatch Intervals; and

\(b\) the maximum incremental Frequency Co-optimised Essential System Service requirement for each of the affected Dispatch Intervals.

3.11.2. AEMO must identify, record and publish on the WEM Website by no

later than noon on the first Business Day following the day on which the Trading Day ends:

\(a\) the number of Dispatch Intervals in the previous 90 Trading Days for which, four hours ahead of the relevant Dispatch Interval, AEMO has scheduled a shortfall in each Frequency Co-optimised Essential System Service, as a result of AEMO’s obligations under clauses 3.12.1 and

3.12.2, in the Reference Scenario; and

\(b\) the number of Dispatch Intervals in the previous 90 Trading Days for which AEMO directed a Market Participant to commit a Facility to provide a Frequency Co-optimised Essential System Service due to a forecast real-time shortfall not being resolved in response to a Low Reserve Condition Declaration ("FCESS Participation Shortfall").

3.11.3. Where the number of Dispatch Intervals identified in clause

3.11.2(b) is greater than the threshold specified in the WEM Procedure

referred to in clause 3.11.4 for each Dispatch Interval identified in clause 3.11.2(b), AEMO must identify and publish on the WEM Website within 15 Business Days:

\(a\) the times of each of the Dispatch Intervals;

\(b\) the total shortfall quantity of the Frequency Co-optimised Essential System Service required in each Dispatch Interval; and

\(c\) the difference between the Market Clearing Price for the Dispatch Interval and the Market Clearing Price which was initially calculated for the Dispatch Interval before AEMO applied the intervention pricing procedure described in the WEM Procedure referred to in clause 7.11C.11.

3.11.4. AEMO must document in a WEM Procedure the process and basis to

determine the number of Dispatch Intervals in any 90 Trading Day period in which it issues directions for a specific Frequency Co-optimised Essential System Service that, once reached, requires AEMO to trigger the SESSM in accordance with section 3.15A.

Explanatory note Clause 3.11.4 requires AEMO to determine a threshold number of participation shortfall intervals that would trigger the SESSM. Clause 3.11.5 seeks to ensure that the threshold is set high enough that the benefits of avoiding the shortfall will be worth the cost of running the SESSM process, but low enough to avoid significant AEMO intervention distorting market outcomes. While a shortfall in Essential System Service is generally undesirable, in setting a trigger threshold we seek to avoid building new capacity to avoid an infrequent or unlikely event where the cost of pre-emptive manual load shedding would be less than the cost of building the new Essential System Service capability.

3.11.5. In developing the WEM Procedure referred to in clause 3.11.4,

AEMO must have regard to:

\(a\) the impact of the directions on AEMO’s dispatch process; and

\(b\) the cost of ongoing directions to Market Participants made pursuant to clause 7.7.5 (including in the form of Intervention Pricing).

3.11.6. Where:

\(a\) AEMO identifies a Frequency Co-optimised Essential System Service Accreditation Shortfall and, in its reasonable opinion, the Frequency Co-optimised Essential System Service Accreditation Shortfall will not be met by Market Participant activity; or

\(b\) the number of Dispatch Intervals in any 90 Trading Day period identified in clause 3.11.2(b) is greater than or equal to the threshold specified in the WEM procedure referred to in clause 3.11.4,

AEMO must trigger the SESSM in accordance with section 3.15A and must identify the quantity of forecast shortfall and the times of the Dispatch Intervals forecast to be affected.

3.11.7. AEMO must document in a WEM Procedure the methodologies and

processes to be followed by AEMO in determining, for each Pre-Dispatch Interval and Dispatch Interval:

\(a\) the quantity of Regulation to schedule and dispatch, including:

i. the identification and measurement of sources of variability; and

iii. the method by which the quantity of Regulation required is calculated;

\(b\) the combination of Contingency Reserve and RoCoF Control Service required to maintain the frequency of the SWIS within the Credible Contingency Event Frequency Band, including the use of Facility Speed Factors for a Facility; and

\(c\) the expected quantities of any other Frequency Co-optimised Essential System Services required in each Dispatch Interval or Pre-Dispatch Interval to meet the Essential System Service Standards.

Explanatory Note The primary objective of the new Non-Co-optimised Essential System Services (NCESS) framework outlined in the Taskforce Paper: A Framework for Non-Co-optimised Essential System Service is to enable AEMO and Western Power to identify and justify the need for an ESS not already available through existing market mechanisms, and to procure those services in a transparent and efficient manner. The NCESS framework outlines: the roles of the Coordinator, AEMO and Western Power under the NCESS framework; the conditions associated with power system security and reliability and market costs that would require Western Power and/or AEMO to trigger an NCESS procurement process; Western Power’s and AEMO’s obligations to consult with the Coordinator of Energy to seek confirmation to trigger an NCESS procurement process; the procurement process that Western Power and AEMO must follow to procure NCESS; the obligations that NCESS Contract holders must follow; the rules for NCESS dispatch and settlement; and the obligation for Western Power to prepare a Transmission System Plan. An Interim NCESS Framework will commence on 1 February 2022 and apply until New WEM Commencement Day. As this Companion Version of the WEM Rules contains the provisions that will apply from the start of the new market, please see Schedule B of the Tranche 5 Amendments for the amendments comprising the interim framework (i.e. sections 3.11A and ### 3.11B) that will apply until that time. This Framework will replace the concept of Dispatch Support Service contract with an AEMO-procured NCESS contract (i.e., it is no longer an Ancillary Service), and a Network Control Service contract with a Network Operator-procured NCESS Contract. The intent is that any Dispatch Support Service or Network Control Service contracts entered into after 1 February 2022 will have the following obligations applied to them: AEMO and Western Power will trigger the procurement of AEMO-procured and NO-procured NCESS respectively. New clauses for trigger conditions have been drafted (see interim clause 3.11A.2 and ### 3.11A.2A); the Coordinator may also trigger at any time based on certain trigger conditions (see interim clause 3.11A.4); the Coordinator will approve the trigger. The ERA will no longer have a role in approving AEMO’s trigger for procuring NCESS; be procured under the new NCESS procurement framework outlined in section 3.11B; and dispatched and settled as per current processes.

3.11A. Triggering Procurement of Non-Co-optimised Essential System

Services (NCESS)

3.11A.1. The Coordinator may only trigger procurement of a NCESS in

accordance with this section 3.11A.

Explanatory Note Clause 3.11A.2 outlines the trigger conditions under which Western Power or AEMO or both must assess and determine whether to make a written submission to the Coordinator to trigger the NCESS Procurement process. Either entity could form a view that a trigger condition applies, and it must then make a written submission to the Coordinator. Allowing either entity to apply to the Coordinator provides a level of guarantee that at least one entity will seek to trigger, even if the other entity does not believe the trigger condition applies. Once a written submission is made to the Coordinator, the Coordinator may request either or both entities to provide more information or undertake analysis to assist the Coordinator in deciding whether to trigger an NCESS procurement process. Clause 3.11A.2 is amended to improve coordination between AEMO and Network Operators by requiring a Network Operator to notify AEMO before the Network Operator makes a submission to request the Coordinator to determine whether to trigger an NCESS procurement process. Section 3.11A is expected to be replaced on New WEM Commencement Day by the Wholesale Electricity Market Amendment (Tranche 5 Amendments) Rules 2021 (Schedule I, paragraph 17.1). Following this replacement, further amendments will be required to reapply the changes described in Part 1 of this Exposure Draft to clauses 3.11A.2 (which replaces clauses 3.11A.2 and 3.11A.2A) and 3.11A.3(b).

3.11A.2. If AEMO or a Network Operator reasonably considers that one or

more of the following events has occurred or applies:

\(a\) if the forecasted or actual magnitude and frequency of Energy Uplift Payments in the WEM increases to an uneconomic level (assuming locational and situational market power is being controlled under the relevant processes), this indicates a locational constraint in the network and a case may be made to procure locational services to relieve the network constraint;

\(b\) frequent AEMO Intervention Events to relieve non-frequency control constraints such as loss of reactive power or system strength indicates a network security problem, and a case could be made to procure a locational security NCESS;

\(c\) if network planning assumptions change at any time during the network planning timeframe (for example, demand is lower or higher than forecast), it may signal the need for an emerging service such as reactive power support or voltage stability which could be provided by non-network services located in the relevant part of the network;

\(d\) a modification to an existing Power System Security or Power System Reliability standard or the introduction of a new Power System Security or Power System Reliability standard within a network planning cycle may trigger the need to procure a NCESS; or

\(e\) AEMO considers, in the course of its normal power system operations, that a significant threat to Power System Security or Power System Reliability exists or is emerging, and the existing mechanisms under these WEM Rules may not be sufficient to address the threat,

then:

\(f\) AEMO must notify the relevant Network Operator, or the Network Operator must notify AEMO (as applicable), of each event that AEMO or the Network Operator (as applicable) considers has occurred or applies, as soon as practicable but in any event before making a submission under clause 3.11A.2(g); and

\(g\) AEMO or the relevant Network Operator (or, at their discretion, both of them) must make a submission (jointly or separately) to request the Coordinator to determine whether to trigger an NCESS procurement process in accordance with section 3.11B.

3.11A.2A. The Coordinator, in consultation with AEMO and a Network

Operator, must develop, and publish on the WEM Website, a guideline providing further details regarding the events described in clause

3.11A.2.

3.11A.3. A submission by a Network Operator or AEMO under clause 3.11A.2

must:

\(a\) be in writing;

\(b\) be made by a date that the Network Operator or AEMO, as applicable, reasonably considers allows sufficient time to enable the NCESS procurement process set out in section 3.11B to be conducted; and

\(c\) contain sufficient information and analysis regarding the potential or actual impact on Power System Security, Power System Reliability or costs for each trigger event in clause 3.11A.2 that is specified in the submission to enable the Coordinator to consider the factors outlined in clause 3.11A.7.

Explanatory Note The Coordinator may trigger the NCESS procurement process if one of the Coordinator’s trigger conditions occurs. If, after reviewing the submissions, the Coordinator is satisfied that the NCESS procurement process should be triggered, the Coordinator may direct either Western Power or AEMO or both as the relevant entity to commence an NCESS procurement.

3.11A.4. The Coordinator may trigger an NCESS procurement process in

accordance with section 3.11B where any one or more of the following events has occurred or applies:

\(a\) the forecast or actual amount of Energy Uplift Payments resulting from one or more binding Constraints imposes an unreasonable level of costs on the market, when assessed against the Wholesale Market Objectives;

\(b\) the Market Clearing Price for any of the Frequency Co-optimised Essential System Services is unreasonable for a sustained period when assessed against the Wholesale Market Objectives;

\(c\) the Whole of System Plan published under section 4.5A indicates alternative network investment options may exist that are reasonably likely to meet a relevant identified network need;

\(d\) the Amending Rules in a Final Rule Change Report require a new service; or

\(e\) the Coordinator has received a submission from a Network Operator or AEMO pursuant to clause 3.11A.2.

.11A.7. When assessing submissions made under clauses 3.11A.2 or

3.11A.3, the Coordinator may:

Explanatory Note Clause 3.11A.5 allows the Coordinator to seek further clarifying information or analysis from either AEMO or Western Power or both, or seek advice internally or from technical experts at her or his discretion. Clause 3.11A.6 outlines the time within which the Coordinator must determine whether to trigger. Clause 3.11A.7 outlines specific factors that must be taken into account when the Coordinator is making a determination.

3.11A.5. When determining under clause 3.11A.4 whether or not to trigger

an NCESS procurement process in accordance with section 3.11B, the Coordinator may:

\(a\) where the Coordinator has received a submission under clause

3.11A.3, request any reasonable further information or analysis from

AEMO or the Network Operator to supplement the submission, and AEMO or the Network Operator, as applicable, must provide the information or analysis by the time specified in the request, which must be a reasonable having regard to the nature of the information or analysis requested;

\(b\) consult with AEMO or a Network Operator; and

\(c\) undertake any reasonable studies, analysis or assessment to support her or his decision.

3.11A.6. The Coordinator must determine whether to trigger the

procurement of an NCESS under clause 3.11A.4:

\(a\) where the Coordinator has received a submission from AEMO or a Network Operator under clause 3.11A.2, within 20 Business Days of the later of:

i. receipt of the submission; and

ii. receipt of any further information or analysis under clause

3.11A.5; or

\(b\) where the Coordinator becomes aware of any other event specified in clause 3.11A.4, within 20 Business Days of the later of:

i. becoming aware of the event; and

ii. receipt of any further information or analysis under clause 3.11A.5 relating to the event.

3.11A.7. The Coordinator must take the following factors into account

when determining whether to trigger the procurement of an NCESS under clause 3.11A.4:

\(a\) where the issue relates to Power System Security or Power System Reliability, the extent to which an NCESS will address the issue;

\(b\) the extent to which an NCESS will minimise costs in the Wholesale Electricity Market;

\(c\) the relative merits between procuring an NCESS or augmenting the network;

\(d\) whether it is suspected that there is a potential exercise of market power;

\(e\) whether the procurement of an NCESS is consistent with the Wholesale Market Objectives; and

\(f\) whether procurement of an NCESS will be in the long-term interests of consumers.

3.11A.8. Where the Coordinator determines under clause 3.11.4 to trigger

an NCESS procurement process in accordance with section 3.11B, the Coordinator must publish a determination on the Coordinator’s website, redacting any commercially sensitive or other confidential information, together with the following:

\(a\) details of any submission received under clause 3.11A.2;

\(b\) reasons for triggering the procurement of an NCESS;

\(c\) any supporting studies, analysis or assessments relied on by the Coordinator in deciding to trigger the procurement of an NCESS;

\(d\) whether AEMO or a Network Operator (in which case, the name of the Network Operator is to be specified), or both of them, is to procure an NCESS and pay for the service; and

\(e\) any other matters relevant to the Coordinator's decision or procurement of an NCESS.

3.11A.9. AEMO or the Network Operator, or both of them, as directed

under clause 3.11A.8(e), must commence an NCESS procurement process in accordance with section 3.11B.

3.11A.10. Where the Coordinator determines under clause 3.11A.4 not to

trigger an NCESS procurement process, the Coordinator must publish a notice on the Coordinator's website, redacting any commercially sensitive or other confidential information, setting out the reasons for her or his decision.

Explanatory Note Western Power and AEMO will be responsible for developing the service specification to procure NCESS. The NCESS procurement process will be a two-stage process where a draft service specification must be published on the relevant website and respondents will have the opportunity to express their interest. This step will enable Western Power and AEMO to determine whether any suitable providers exist and what solutions they can provide to meet fully or partially the requirements. Suitability may depend on several factors such as the type of technology, network location, operational limitations etc. If suitable providers are not found, the service specification may need to be modified, or the NCESS procurement may be postponed or may not proceed. If the NCESS procurement is to proceed based on the expressions of interest received, AEMO or Western Power as applicable will issue a request for tender and a final service specification will then be published to commence the procurement process. New providers that did not participate in the first step can also apply. See the Explanatory Note at section 3.11A regarding the interim NCESS framework.

3.11B. Procuring Non-Co-optimised Essential System Services

Expression of interest

3.11B.1. AEMO or the Network Operator, as directed under clause

3.11A.8(e), must prepare a draft NCESS Service Specification in

accordance with clause 3.11B.5. In preparing the draft NCESS Service Specification, AEMO and the Network Operator must consult with each other on the draft NCESS Service Specification.

3.11B.2. Within 20 Business Days, or as reasonably agreed with the

Coordinator, of the publication of the Coordinator's determination under clause 3.11A.8, AEMO or the Network Operator, as applicable, must advertise a call for expressions of interest by:

\(a\) publishing a notice on the WEM Website, in the case of AEMO, or publishing a notice on the Network Operator's website, in the case of the Network Operator; and

\(b\) publishing a notice in a major Australian newspaper.

3.11B.3. AEMO or the Network Operator, as applicable, must include in

each notice referred to in clause 3.11B.2:

\(a\) the date and time for lodgement of expressions of interest, which must not be less than 20 Business Days after the date the last notice is published in accordance with clause 3.11B.2;

\(b\) the location on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, of the draft NCESS Service Specification;

\(c\) contact details for AEMO or the Network Operator, as applicable; and

\(d\) the location on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, of the expression of interest form referred to in clause 3.11B.3A.

3.11B.3A. AEMO or the Network Operator, as applicable, must develop and

publish on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, an expression of interest form, setting out the details prospective service providers must provide in response to a call for expressions of interest, which must include whether the facility or equipment that may be able to provide the service can fully or partially meet the draft NCESS Service Specification.

3.11B.4. Within 10 Business Days, or as reasonably agreed with the

Coordinator, of the closing date for expressions of interest under clause 3.11B.3, AEMO or the Network Operator, as applicable, must consult with the Coordinator to determine whether, based on the expressions of interest received:

\(a\) the NCESS procurement process should proceed, in which case, AEMO or the Network Operator, as applicable, must prepare a final NCESS Service Specification, which must be consistent with the draft NCESS Service Specification, and publish a call for NCESS Submissions in accordance with clause 3.11B.6;

\(b\) the NCESS procurement process should proceed subject to modifications to the Service Specification, in which case, AEMO or the Network Operator, as applicable, must prepare a revised NCESS Service Specification and publish a call for NCESS Submissions in accordance with clause 3.11B.6; or

\(c\) the NCESS procurement process should not proceed, in which case, AEMO or the Network Operator, as applicable, must:

i. publish a notice on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, notifying that the NCESS procurement process will not proceed and the reasons for the decision; and

ii. notify each person that submitted an expression of interest that procurement of the NCESS is not proceeding and the location on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, of the notice referred to in clause

3.11B.4(c)(i).

Explanatory Note Clauses 3.11B.5 and 3.11B.7 are amended in response to stakeholder concerns that unless the information in the new clause 3.11B.5(eA) is provided the AEMO would not be able decide whether the proposed Facility is capable of being assigned Certified Reserve Capacity and Capacity Credits. Further, clause 3.11B.7(iA) is included to enable a proponent to request reimbursement for any reduction in a Reserve Capacity settlement amount that is a direct consequence of the enablement or dispatch of the NCESS (e.g. in the event NCESS services provided by storage are enabled outside of the ESR obligation intervals). The drafting of clause 3.11B.7(iA) is amended from the version presented in Exposure Draft 2 to take into account all the impacts of a Forced Outage on Reserve Capacity settlement amounts, e.g. the return of a share of Capacity Cost Refunds to a Market Participant through Participant Capacity Rebates. Clause 3.11B.7 is also amended to correct minor typographical and grammatical errors and use standard terminology.

3.11B.5. An NCESS Service Specification must, at a minimum, include:

\(a\) the service requirements;

\(b\) the expected technical capability of a facility or equipment that may be able to provide the service;

\(c\) where applicable, the likely network location where the service is to be provided;

\(d\) the maximum quantity of the service required;

\(e\) the expected commencement and duration of the service;

(eA) reasonable expectation of the frequency of service utilisation, the expected duration of each utilisation and when the service is expected to be utilised during typical days;

\(f\) any operational requirements or limitations;

\(g\) the material contractual terms associated with the NCESS, including required pricing structure;

\(h\) the selection criteria that may apply to the NCESS Submissions; and

\(i\) any other relevant matters.

3.11B.6. In advertising a call for NCESS Submissions in accordance with

clause 3.11B.4(a), AEMO or the Network Operator, as applicable, must:

\(a\) publish a notice requesting NCESS Submissions:

i. on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator; and

ii. on at least one major tender portal; and

\(b\) notify Market Participants in writing.

3.11B.6A. AEMO or the Network Operator, as applicable, must include in

each notice referred to in clause 3.11B.6:

\(a\) the date and time for lodgement of NCESS Submissions, which must:

i. not be less than 20 Business Days after the date the last notice is published in accordance with clause 3.11B.6; and

ii. be in accordance with the form referred to in clause 3.11B.7;

\(b\) contact details for AEMO or the Network Operator, as applicable; and

\(c\) the location on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, of the NCESS Submission form referred to in clause 3.11B.7;

\(d\) the location on WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, of the NCESS Service Specification referred to in clause 3.11B.5; and

\(e\) any qualifying criteria in respect of making an NCESS Submission in accordance with clause 3.11B.8.

3.11B.7. An NCESS Submission form must, at a minimum, include:

\(a\) the name and type of facility or equipment, and whether it is registered or intended to be registered under these WEM Rules;

\(b\) the name of the Market Participant, or service provider, as applicable, in respect to the facility or equipment;

\(c\) the quantity of service the facility or equipment will provide for the NCESS;

\(d\) the timing and duration of the service availability for the NCESS;

\(e\) the location of the facility or equipment on the network;

\(f\) any operational requirements or limitations that must be respected for use of the facility or equipment for the NCESS;

\(g\) where the NCESS Submission is made in respect to a type of technology that would ordinarily be capable of being assigned Certified Reserve Capacity, the information required to be provided by the Market Participant or service provider to demonstrate that it will be able to meet the relevant requirements in clause 4.10.1 for at least the first Reserve Capacity Cycle coinciding with the period of the NCESS Contract;

(gA) where the NCESS Submission is made in respect to a type of technology that would not ordinarily be capable of being assigned Certified Reserve Capacity, the information required to be provided by the Market Participant or service provider to demonstrate that it is not able to meet the relevant requirements of clause 4.10.1;

\(h\) whether the facility or equipment participates, or will participate, in Central Dispatch or is accredited or will be accredited under these WEM Rules to provide an Essential System Service;

\(i\) the fixed costs for that facility or equipment applicable for the period of the NCESS Contract, including any Capacity Credit payments expected or received;

(iA) if the facility or equipment would ordinarily be capable of being assigned Certified Reserve Capacity, whether the Market Participant or service provider would require any reimbursement for any reduction in a Reserve Capacity settlement amount determined for it under clause 9.8.2 that is a direct consequence of the enablement or dispatch of the NCESS;

\(j\) the highest price at which the facility or equipment will provide the NCESS when enabled or dispatched; and

\(k\) any other payment that the facility or equipment requires to provide the NCESS.

Explanatory Note Any existing or new facility or equipment whether belonging to registered or intending market participants is able to participate in an NCESS procurement. The requirement to make an NCESS Submission in good faith will be a civil penalty provision. The WEM Regulations do not provide power for civil penalties to be levied on parties that are outside of the WEM Rules so this clause will only apply to Market Participants. Where a person who is not a Market Participant makes a submission that is misleading or designed to deceive then there may be remedies available outside of the WEM Rules. AEMO and the Network Operator should also take this into account if the person subsequently seeks to be registered under the WEM Rules.

Participation in NCESS Procurement

3.11B.8. An NCESS Submission must:

\(a\) be made in good faith;

\(b\) be made in accordance with the NCESS Submission form referred to in clause 3.11B.7 and contain any other information requested; and

\(c\) include the cost information and any assumptions used to calculate the proposed NCESS payment structure.

Explanatory Note The selection process of NCESS Submissions requires AEMO or Western Power, as applicable to determine whether value for money will be maximised by selecting the relevant NCESS Submission – see clause ### 3.11B.11. Under the Electricity Networks Access Code clause 6.52, Western Power is required to conduct a new facilities investment test (NFIT) to determine whether costs will be efficiently minimised when investing in a new facility or considering alternative options to the new facility. Western Power may use the NFIT process to conduct the assessment required under clause 3.11B.12.

Selection process and signing of NCESS Contract

3.11B.9. Within 20 Business Days, or as reasonably agreed with the

Coordinator, of the closing date for NCESS Submissions, AEMO or the Network Operator, as applicable, must:

\(a\) in accordance with clause 3.11B.10, select one or more NCESS Submissions which:

i. comply with the requirements in clause 3.11B.7;

ii. meet the NCESS Service Specification published in the request for NCESS Submissions; and

iii. in AEMO’s or the Network Operator’s reasonable opinion, as applicable, will result in the highest value for money for providing the NCESS; and

\(b\) notify the relevant Market Participant or service provider that their NCESS Submission has been selected.

3.11B.10. Subject to clause 3.11B.12, when determining which NCESS

Submissions to select under clause 3.11B.9, AEMO or the Network Operator, as applicable, must:

\(a\) exclude NCESS Submissions that do not comply with the NCESS Service Specification; and

\(b\) exclude NCESS Submissions for new facilities or equipment where:

i. insufficient evidence has been provided to support NCESS delivery dates; or

ii. sufficient Environmental Approvals have not been granted.

3.11B.11. AEMO or the Network Operator, as applicable, must, when

assessing highest value for money under clause 3.11B.9(a)(iii) in respect of an NCESS Submission:

\(a\) conduct cost-benefit analysis or other assessments to demonstrate how the NCESS Submission will maximise value for money; and

\(b\) take into account all costs in the Wholesale Electricity Market, including, but not limited to, costs relating to Certified Reserve Capacity in respect to the Facility or equipment the subject of the NCESS Submission.

3.11B.12. AEMO or the Network Operator, as applicable, may decide to not

select any NCESS Submissions where AEMO or the Network Operator considers, in their absolute discretion, that none of the NCESS Submissions represent value for money. Where this occurs, AEMO or the Network Operator, as applicable, must publish the reasons for the decision the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator.

3.11B.13. Where a Network Operator intends to enter into an NCESS

Contract that it reasonably believes may require operational coordination with AEMO in order to manage Power System Security or Power System Reliability, or that is captured in the Operating Protocol referred to in clause 3.1A.1, the Network Operator must, prior to issuing the NCESS Contract to the relevant Market Participant or service provider, consult with AEMO, and

\(a\) agree an operational process for coordination of scheduling, dispatch, enablement and monitoring of the NCESS with AEMO; and

\(b\) where AEMO requires control of the NCESS, agree the relevant requirements for control with AEMO and specify the agreed requirements in the NCESS Contract.

3.11B.14. Each Market Participant or service provider who is notified in

accordance with clause 3.11B.9(b) that their NCESS Submission has been selected must, within 10 Business Days of receiving the executed NCESS Contract from AEMO or the Network Operator, as applicable:

\(a\) enter into an NCESS Contract with AEMO or the Network Operator, as applicable;

\(b\) where the service provider is required to be registered under these WEM Rules, make an application in accordance with these WEM Rules to become registered as a Rule Participant in the relevant class; and

\(c\) where the facility or equipment that will provide the NCESS is required to be registered under these WEM Rules, make an application in accordance with these WEM Rules to register the facility or equipment in the relevant Facility Class.

3.11B.15. AEMO or the Network Operator, as applicable, must publish the

following details regarding each NCESS Contract on the WEM Website, in the case of AEMO, or the Network Operator's website, in the case of the Network Operator, as soon as practicable after the NCESS Contract has been signed by all parties:

\(a\) the name of each Market Participant or service provider and the Facility or equipment that will provide the NCESS;

\(b\) the location on the network of the facility or equipment;

\(c\) the type of service the facility or equipment will provide as NCESS;

\(d\) the timing and duration of the NCESS to be provided under the NCESS Contract; and

\(e\) the payment structure and the amounts specified in the NCESS Contract.

Explanatory Note Section 3.12 ensures that if there is insufficient capacity to dispatch energy and ESS, AEMO must dispatch Facilities for energy first. In such a situation, AEMO is likely to also consider shedding load under clause 3.6.6A. This is subject to available capacity determined in accordance with Chapter 7.

3.12. Essential System Service Dispatch

3.12.1. AEMO must schedule and dispatch Registered Facilities (or cause

them to be scheduled and dispatched) to meet the Essential System Service Standards in each Dispatch Interval in accordance with Chapter 7.

3.12.2. AEMO must schedule or dispatch Registered Facilities for energy

in preference to Frequency Co-optimised Essential System Service.

Explanatory Note The margin values determined and finalised by the ERA will apply until 30 June 2022. Section 3.13 is amended to address the gap in margin values from 1 July 2022 to new market start. At market start, the margin values clauses are replaced by new provisions. However, as this section is deleted and replaced by the Tranches 2 and 3 Amendments, this companion version of the WEM Rules only shows the Tranches 2 and 3 Amendments as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last. Please refer to the Miscellaneous Amendments No. 2 for the amendments to section 3.13 that commenced on 1 October 2021.

3.13. [Blank]

3.14. [Blank]

Explanatory Note The amendments to section 3.15 are to reflect the new arrangements for reviews of the processes and standards of ESS, and in particular to include economic analysis of the underlying technical settings. The review will encompass all ESS, not only FCESS.

3.15. Review of Essential System Service Process and Standards

3.15.1. The Coordinator, with the assistance of AEMO, must carry out a

review on the Essential System Service Standards and the basis for setting Essential System Service requirements.

3.15.1A. The Coordinator must conduct the first review under clause

3.15.1 within two and a half years of the New WEM Commencement Day and

then, subject to clause 3.15.1B, at least once in every three year period from completion of the previous review.

3.15.1B. The Coordinator may conduct a review contemplated by clause

3.15.1 earlier than the time referred to in clause 3.15.1A if it

reasonably forms the opinion that any of the metrics developed under clause 3.15.2 are significantly departing from the targets set in the previous review.

3.15.1C. A review conducted pursuant to clause 3.15.1A or clause 3.15.1B

must include:

\(a\) technical analyses determining the relationship between the quantity of Essential System Service scheduled and dispatched against the technical parameters in the Frequency Operating Standards;

\(b\) economic analyses determining the relationship between technical parameters (including, without limitation, frequency operating bands and Oscillation Control Constraint Equation parameters) and overall cost of supply of energy and Essential System Services;

\(c\) a cost-benefit study on the effects on the Network and Market Participants of providing and using higher or lower levels of each Essential System Service;

\(d\) identification of the costs and benefits of changing technical parameters, including the potential for increasing or decreasing the overall cost to supply energy and Essential System Services;

\(e\) a review of the processes and effectiveness of the SESSM if it was triggered during the review period; and

\(f\) a public consultation process.

3.15.2. As part of each review under clause 3.15.1A or clause 3.15.1B,

the Coordinator, with the support of AEMO, must determine and publish a set of metrics to be used for ongoing monitoring of Essential System Services, which must include:

\(a\) technical outcomes, such as dispatched Essential System Service quantities, number of accredited Facilities, number of capable Facilities and the historical performance of those Facilities;

\(b\) financial outcomes, such as Market Clearing Prices and Essential System Service costs; and

\(c\) economic outcomes, such as the overall electricity costs faced by consumers.

3.15.3. The Coordinator must publish a report containing:

\(a\) the inputs and results of the technical reviews conducted pursuant to clause 3.15.1A and clause 3.15.1B and cost-benefit studies;

\(b\) the submissions received by the Coordinator in the consultation process, a summary of those submissions, and any responses to issues raised in those submissions;

\(c\) any recommendations for the inclusion of a new Essential System Service, changes to Essential System Service Standards and the basis for setting Essential System Service requirements.; and

\(d\) the metrics and targets to be used for ongoing monitoring of Essential System Services.

3.15.4. The Coordinator must publish the report referred to in clause

3.15.3 no later than:

\(a\) for the first report, two and a half years of the New WEM Commencement Day; and

\(b\) thereafter, three years after publishing the previous review.

3.15.5. If the Coordinator recommends any changes in a report published

under clause 3.15.3, the Coordinator must, as relevant:

\(a\) draft a Rule Change Proposal in accordance with clause 2.5.1 to implement those changes;

\(b\) draft a suitable Procedure Change Proposal and progress it using the Procedure Change Process in section 2.10; or

\(c\) recommend to AEMO that it amend a WEM Procedure which these WEM Rules contemplate will be developed by AEMO, in which case AEMO must draft a suitable Procedure Change Proposal and progress it using the Procedure Change Process in section 2.10.

Explanatory Note New section 3.15A sets out the regime for the new SESSM for procuring FCESS. This new regime replaces the current contract-based mechanism. Set out below is an extract from the Taskforce’s Information Paper Supplementary ESS Procurement Mechanism to provide some background to the new regime. You should refer to the Information Paper for further details. FCESS will be primarily procured via real-time markets, with participation from all capable and accredited facilities enabled, but not mandatory. Nevertheless, to protect against the risk of market failure in what will be relatively small and concentrated markets, the Taskforce has endorsed the SESSM to provide a means for longer-term contractual arrangements to increase certainty, mitigate inefficient market outcomes, support new market entry, and avoid a shortfall in ESS accreditation and participation. Contrasting with current arrangements, the SESSM will be implemented through a transparent tender process in the WEM Rules, rather than through individually negotiated bilateral contracts. The broad objectives of the SESSM are to: incentivise new FCESS providers to enter the market; mitigate scarcity in FCESS markets, manifesting either as a shortfall of accredited facilities, or shortfall of participation; and mitigation of market power by: the threat of competitive entry; and a mechanism of ex-ante review of the operating costs of ESS providers by the Economic Regulation Authority. The procurement of SESSM broadly consists of seven stages: Triggering, SESSM Service Specification, Veto of Procurement, Procurement Process, Selection, Veto of Award, and SESSM.

3.15A. Supplementary Essential System Service Mechanism (SESSM)

Triggering the SESSM

Explanatory Note The SESSM may be triggered by AEMO or it may be triggered by the ERA in accordance with the trigger events set out below. Depending on which body triggers the SESSM will affect the process. In response to industry feedback, the ERA's ability to review AEMO's triggering of the SESSM has been removed.

3.15A.1. AEMO may only trigger the SESSM in accordance with clause

3.11.6.

3.15A.2. The Economic Regulation Authority may only trigger the SESSM

when, pursuant to a review by the Coordinator under clauses 3.15.1A or

3.15.1B or the Economic Regulation Authority's monitoring pursuant to

clause 2.16.9, it reasonably considers that Real-Time Market outcomes are not consistent with the efficient operation of the Real-Time Market in respect of Frequency Co-optimised Essential System Services or the Wholesale Market Objectives.

3.15A.3. Where AEMO is required to trigger the SESSM, AEMO must, within

five Business Days of determining to trigger the SESSM, publish on the WEM Website:

\(a\) the reasons why it is required to trigger the SESSM;

\(b\) the Frequency Co-optimised Essential System Services it determines to be procured through the SESSM;

\(c\) where AEMO identifies an FCESS Accreditation Shortfall in accordance with clause 3.11.1, the additional quantity of the relevant Frequency Co-optimised Essential System Services AEMO considers would rectify the shortfall;

\(d\) the SESSM Service Specification, prepared in accordance with clause 3.15A.6, for each Frequency Co-optimised Essential System Service to be procured under the SESSM; and

\(e\) where the number of Dispatch Intervals in any 90 Trading Day period referred to in clause 3.11.4 is reached, the number of Dispatch Intervals where AEMO was required to give a direction for a specific Frequency Co-optimised Essential System Service that otherwise would not have been required if Frequency Co-optimised Essential System Services had been procured pursuant to the SESSM for that 90 Trading Day period.

3.15A.4. When the Economic Regulation Authority triggers the SESSM

pursuant to clause 3.15A.2 it must publish:

\(a\) the reasons why it triggered the SESSM;

\(b\) the Frequency Co-optimised Essential System Services it determines to be procured through the SESSM;

\(c\) whether the Frequency Co-optimised Essential System Services are required for certain time intervals only (for example, day of week, time of year), or are required more generally; and

\(d\) an estimate of the difference between the cost of Frequency Co-optimised Essential System Services in the Real-Time Market and the Economic Regulation Authority's reasonable estimate of the cost of those Frequency Co-optimised Essential System Services if they were procured in an efficient Real-Time Market.

3.15A.5. The Economic Regulation Authority must document in a WEM

Procedure the process it will undertake to identify inefficient Real-Time Market outcomes pursuant to clause 3.15A.2, which may include, but is not limited to:

\(a\) comparing individual Facility offers of Frequency Co-optimised Essential System Services with:

i. offers of Frequency Co-optimised Essential System Services from similar Facilities;

ii. expected or known costs for that Facility;

iii. offers from the same Facility in different time periods;

iv. historic offers of Frequency Co-optimised Essential System Services in the Real-Time Market; and

v. the Frequency Co-optimised Essential System Services offer construction guidelines published by the Economic Regulation Authority;

\(b\) comparing existing Facility costs with potential new facility entrant costs;

\(c\) an analysis of the information received from expressions of interest forms submitted in accordance with section 3.15B; and

\(d\) comparing Frequency Co-optimised Essential System Services market outcomes with other relevant jurisdictions.

Explanatory Note AEMO will be responsible for the service specification for each FCESS but it must align with the relevant shortfall identified. To allow the market to develop, there will be a transitional rule which, in the first three years of operation of the market, restricts the SESSM Award Duration to a maximum of one year and a maximum of three years thereafter.

SESSM Service specification

3.15A.6. When the SESSM is triggered under clause 3.15A.1 or clause

3.15A.2, AEMO must prepare a SESSM Service Specification for each

Frequency Co-optimised Essential System Service being procured under the SESSM which must include the:

\(a\) name of the Frequency Co-optimised Essential System Service or services;

\(b\) SESSM Service Commencement Date;

\(c\) SESSM Service Timing;

\(d\) SESSM Award Duration;

\(e\) SESSM Service Quantity Profile; and

\(f\) SESSM Availability Requirement.

3.15A.7. Where the SESSM has been triggered by AEMO, the SESSM Service

Timing and SESSM Service Quantity Profile must align with the relevant quantities and times identified by AEMO under clause 3.11.6.

Explanatory Note Where the ERA triggers the SESSM, the quantities of FCESS will include the full forecast quantity, to enable new providers to compete in the process alongside any Facilities designated to participate in the process by the ERA (based on the Market Participant’s capability of exercising market power in respect the Facility), and any other existing facilities who wish to participate.

3.15A.8. Where the SESSM has been triggered by the Economic Regulation

Authority, the SESSM Service Timing must align with the relevant times identified by the Economic Regulation Authority under clause 3.15A.4 and the SESSM Service Quantity Profile must align with the quantities of the relevant Frequency Co-optimised Essential System Service identified by AEMO in the most recent Medium Term PASA.

Explanatory Note The intention is for new providers or new capacity for ESS to participate in the SESSM. A Facility does not need to be registered to participate in SESSM procurement. However, if the facility is successful then it will be required to register and be accredited pursuant to clause ### 3.15A.39.

Participation

3.15A.9. The facilities that may participate in a SESSM procurement are:

\(a\) a Registered Facility, whether or not it is accredited to provide a Frequency Co-optimised Essential System Service under clause 2.34A.1; or

\(b\) a new facility that is not registered under the WEM Rules.

Explanatory Note Clause 3.15A.10 intends that an existing accredited Facility can only participate in an AEMO triggered SESSM if it is seeking to increase its accredited capacity through incremental capital upgrades. For example, by installing new equipment that enables it to provide more of the FCESS.

3.15A.10. Where AEMO has identified a FCESS Accreditation Shortfall

under clause 3.11.1, then a Facility that is accredited under clause 2.34A.1 to provide a Frequency Co-optimised Essential System Service may only participate in a SESSM procurement for that Frequency Co-optimised Essential System Service by proposing an increase in its accredited capability to provide that Frequency Co-optimised Essential System Service.

Explanatory Note The ERA will have the power to designate facilities to participate in the SESSM, where the Market Participant is expected to have, or be able to exercise, market power in respect to any of its facilities.

3.15A.11. Where the Economic Regulation Authority triggers the SESSM,

subject to clause 3.15A.13, the Economic Regulation Authority may designate one or more Registered Facilities that must participate in the SESSM procurement process.

Explanatory Note Clause 3.15A.12 provides clarity in respect to the obligations for designated facilities.

3.15A.12. Where the Economic Regulation Authority has designated a

Registered Facility pursuant to clause 3.15A.11, the Market Participant responsible for that Registered Facility must offer up to the lesser of the SESSM Service Quantity Profile or the available accredited capability in excess of any existing SESSM Award for the applicable Frequency Co-optimised Essential System Service.

3.15A.13. The Economic Regulation Authority may only designate a

Registered Facility pursuant to clause 3.15A.11:

\(a\) that the Economic Regulation Authority reasonably considers is able to meet the SESSM Service Specification;

\(b\) that is accredited for that Frequency Co-optimised Essential System Service under clause 2.34A.1 and the Market Participant responsible for that Registered Facility has made a Real-Time Market Submission including Price-Quantity Pairs for the relevant Frequency Co-optimised Essential System Service;

\(d\) if the Facility has available accredited capability in excess of any existing SESSM Award for the applicable Frequency Co-optimised Essential System Service; and

\(e\) if, in the Economic Regulation Authority's opinion, the Market Participant for the designated Facility has, or is expected to be able to exercise, market power in respect of the designated Facility, either alone or in combination with any one or more of the Market Participant's other Facilities, for the applicable Frequency Co-optimised Essential System Service.

To avoid doubt, the Economic Regulation Authority may, but is not obliged to, consult with AEMO in respect of designating a Facility pursuant to clause 3.15A.11.

3.15A.14. Where the Economic Regulation Authority has designated a

Facility pursuant to clause 3.15A.11, the Economic Regulation Authority must notify:

\(a\) AEMO, and provide details of the Facility; and

\(b\) the relevant Market Participant responsible for the Facility.

3.15A.15. A Facility that has not been designated by the Economic

Regulation Authority pursuant to clause 3.15A.11 may still participate in a SESSM procurement process triggered by the Economic Regulation Authority.

3.15A.16. Where the Economic Regulation Authority has designated a

Registered Facility pursuant to clause 3.15A.11, the Market Participant responsible for the Registered Facility must submit a SESSM Submission to the SESSM procurement process

Explanatory Note AEMO will be required to advertise the particulars of the SESSM to maximise participation.

Procurement notice

3.15A.17. Where the SESSM is triggered under clause 3.15A.1 or clause

3.15A.2, AEMO must advertise a call for SESSM Submissions, no later than

20 Business Days prior to the proposed closing date for SESSM Submissions.

3.15A.18. In advertising the call for SESSM Submissions in accordance

with clause 3.15A.19, AEMO must:

\(a\) publish a notice on the WEM Website;

\(b\) publish a notice on at least one major tender portal;

\(c\) directly contact any Market Participants designated by the Economic Regulation Authority pursuant to clause 3.15A.11; and

\(d\) issue a Market Advisory.

3.15A.19. AEMO must include in each notice referred to in clause

3.15A.18:

\(a\) the date and time for lodgement of SESSM Submissions, which must be in accordance with the form referred to in clause 3.15A.20;

\(b\) contact details for AEMO;

\(c\) a description of the quantity, type and timing of the required Frequency Co-optimised Essential System Service;

\(d\) the location on the WEM Website of the SESSM Submission form referred to in clause 3.15A.20; and

\(e\) the location on the WEM Website of the SESSM Service Specification for the Frequency Co-optimised Essential System Service referred to in clause 3.15A.6.

Explanatory Note The requirements for responses to the SESSM are set out in clauses ### 3.15A.20 to 3.15A.23.

Response requirements

3.15A.20. AEMO must develop and publish a SESSM Submission form which

must include the following fields for the SESSM procurement:

\(a\) the SESSM Availability Quantity for each Dispatch Interval in the SESSM Award Duration up to the quantity set out in the SESSM Service Specification for the existing or new facility which may vary according to the time periods set out in the SESSM Service Specification;

\(b\) the proposed SESSM Availability Payment, which:

i. is the total amount payable across the SESSM Award Duration for offering the SESSM Availability Quantity into the Real-Time Market; and

ii. must be equal to or less than the incremental fixed costs, if any, that are not already covered by any Capacity Credit payments, which would otherwise be incurred to make available the SESSM Availability Quantity of the Frequency Co-optimised Essential System Service in addition to any Base ESS Quantity of that Frequency Co-optimised Essential System Service;

\(c\) the proposed SESSM Offer Cap, which must reflect the variable costs inclusive of margin of providing the relevant Frequency Co-optimised Essential System Service, and which:

i. is the highest price which the Market Participant or person intending to be a Market Participant will offer the applicable Frequency Co-optimised Essential System Service into the Real-Time Market; and

ii. may vary according to the time periods set out in the SESSM Service Specification;

\(d\) the SESSM Award Duration; and

\(e\) where the SESSM includes more than one Frequency Co-optimised Essential System Service, whether the SESSM Submission is contingent on holding a SESSM Award for more than one Frequency Co-optimised Essential System Service that is also included in the SESSM and, if so, which ones.

Explanatory Note The requirement to make a SESSM Submission in good faith will be a civil penalty provision. The WEM Regulations do not provide power for civil penalties to be levied on parties that are outside of the WEM Rules so this clause will only apply to Market Participants. Where a person who is not a Market Participant makes a submission that is misleading or designed to deceive then there may be remedies available outside of the WEM Rules. AEMO should also take this into account if the person subsequently seeks to be registered under the WEM Rules.

3.15A.21. A SESSM Submission submitted by a Market Participant in

response to a call for SESSM Submissions under clause 3.15A.17 must:

\(a\) be made in good faith;

\(b\) be in the form published by AEMO in accordance with clause

3.15A.20; and

\(c\) include the cost information and any assumptions used to calculate the proposed SESSM Offer Cap and SESSM Availability Payment.

3.15A.22. Where a Market Participant submits a SESSM Submission under

clause 3.15A.21 in respect of an accredited Facility, the SESSM Submission must also include:

\(a\) a comparison of the proposed SESSM Availability Quantity of the Facility to its historic quantities offered in the Real-Time Market over the past 12 months in Dispatch Intervals within the SESSM Service Timing; and

\(b\) [Blank]

\(c\) [Blank]

\(d\) a comparison of the proposed SESSM Offer Cap for the Facility to its historic offer prices offered in the Real-Time Market over the past 12 months.

3.15A.23. Where a Market Participant submits a SESSM Submission under

clause 3.15A.21 in respect of a new or existing facility which is:

\(a\) not accredited for the relevant Frequency Co-optimised Essential System Service; or

\(b\) accredited for the relevant Frequency Co-optimised Essential System Service and which is proposing to increase the quantity of the relevant Frequency Co-optimised Essential System Service for which it is accredited,

the SESSM Submission must also include:

\(c\) whether or not the facility has applied for, or been granted, Certified Reserve Capacity or Capacity Credits in respect of the capacity that would provide the Frequency Co-optimised Essential System Service;

\(d\) if the Facility, or relevant part of the Facility, has not applied for or been granted Certified Reserve Capacity or Capacity Credits, the information listed in clause 4.10.1(c), and any other evidence required under the relevant WEM Procedure in support of the Key Project Dates;

\(e\) the expected Standing Enablement Minimum;

\(f\) the expected generation cost at the Standing Enablement Minimum;

\(g\) evidence of the capability of the Facility to provide the relevant Frequency Co-optimised Essential System Service, as specified in the relevant WEM Procedure; and

\(h\) expected start-up costs for the Facility.

Explanatory Note A person may make more than one SESSM Submission and may set out alternative offers. In addition, a person may make contingent offers for multiple services. AEMO will only select one offer, or combination, but the intention is to provide as much choice and flexibility to the market, while ensuring offers can be compared on a consistent basis. A person must make compliant offers under clause 3.15A.24 to be permitted to make a contingent offer for multiple services to AEMO as well. Facilities which can contribute, but not meet the entirety of the Service Quantity will be expected to offer into SESSM, and these offers will be considered “conforming”.

3.15A.24. A Market Participant wishing to participate in the SESSM may

make one or more SESSM Submissions in respect of a single facility which:

\(a\) comply with the requirements of SESSM Submissions specified in clauses 3.15A.21 to 3.15A.23 as applicable;

\(b\) comply with the SESSM Service Specification;

\(c\) include an SESSM Availability Quantity less than or equal to the maximum quantity identified in the SESSM Service Quantity Profile, which must include any allowance for the effects of temperature on the capability of the Facility;

\(d\) are binding for the SESSM Award Duration as specified in the SESSM Service Specification;

\(e\) may have different SESSM Availability Quantities; and

\(f\) are not contingent on being awarded a SESSM Award for more than one Frequency Co-optimised Essential System Service.

3.15A.25. Where a Market Participant has made a SESSM Submission under

clause 3.15A.24, it may make one or more additional SESSM Submissions in respect of the same facility which:

\(a\) have the same SESSM Availability Quantity and SESSM Offer Cap but have a different SESSM Award Duration and SESSM Availability Payment; or

\(b\) have the same SESSM Availability Quantity, SESSM Offer Cap and SESSM Award Duration but have a different SESSM Availability Payment and are contingent on the Facility being selected for more than one SESSM Award.

Explanatory Note AEMO will select the submissions which meet the SESSM Service Specification and result in the lowest cost of providing the FCESS to the market. The ERA will have a review role in order to ensure that the process has been followed, but is not expected to perform a parallel assessment. Some industry members raised the need to include clauses to outline the process for when no SESSM Submissions are received. In this situation, the SESSM procurement process will no longer go ahead and the relevant FCESS market will continue to operate as it did prior to the trigger, with AEMO likely re-triggering the SESSM again if the shortfall persists. The process to be followed when no SESSM Submissions are received in the SESSM procurement will be set out in the WEM Procedure.

Selection analysis and approval

3.15A.26. Within 20 Business Days of the date and time for lodgement of

SESSM Submissions specified in clause 3.15A.19(a), AEMO must:

\(a\) select the SESSM Submissions which:

i. comply with the requirements of clause 3.15A.24 and clause 3.15A.25; and

ii. meet the SESSM Service Specification which, taken together, in AEMO’s opinion will result in the lowest cost of providing the Frequency Co-optimised Essential System Service in accordance with clause

3.15A.27;

\(b\) identify the Market Participants and the Facilities who it approves and intends to grant a SESSM Award; and

\(c\) notify the Economic Regulation Authority in accordance with clause

3.15A.29.

3.15A.27. When selecting the lowest cost combination of SESSM

Submissions in accordance with clause 3.15A.26(a), AEMO must:

\(a\) exclude SESSM Submissions that do not comply with the SESSM Service Specification;

\(b\) exclude SESSM Submissions for new facilities where insufficient evidence has been provided to support the Key Project Dates or that all necessary Environmental Approvals have been granted;

\(c\) identify historical Dispatch Intervals matching the SESSM Service Specification;

\(d\) calculate energy price profiles for energy matching the SESSM Service Timing for those Dispatch Intervals on the basis of three categories being average cost, high cost and low cost;

\(e\) calculate effective Frequency Co-optimised Essential System Service offer prices for each SESSM Submission comprising:

i. proposed SESSM Availability Payment divided by the sum of all SESSM Availability Quantities within the SESSM Award Duration;

ii. proposed SESSM Offer Cap; and

iii. expected FCESS Uplift Payments based on:

1. Standing Enablement Minimum;

2. start-up costs; and

3. minimum running costs; and

\(f\) calculate the lowest cost combination of SESSM Submissions to deliver the requirement under each of the three energy price profiles referred to in clause 3.15A.27(d);

\(g\) for submissions provided in accordance with 3.15A.21 adjust the SESSM Availability Quantity to account for Network Constraints; and

\(h\) adjust the SESSM Availability Quantity to account for AEMO’s assessed capability of the Facility to provide the relevant Frequency Co-optimised Essential System Service.

3.15A.28. If AEMO is selecting Facilities to meet more than one SESSM

Service Specification in a single SESSM procurement process, AEMO must:

\(a\) identify where the SESSM Submissions from a Facility for the provision of different Frequency Co-optimised Essential System Services would be provided from the same portion of the Facility’s capacity;

\(b\) determine the order of selection for the affected Frequency Co-optimised Essential System Services;

\(c\) in selecting Facilities to provide each of the Frequency Co-optimised Essential System Services, exclude any SESSM Submissions for the Facility’s capacity that has already been selected for a SESSM Award under a previous selection; and

\(d\) ensure that proposed SESSM Awards will deliver the total Essential System Service requirement.

3.15A.29. AEMO must notify the Economic Regulation Authority of the

outcome of the SESSM, including providing the Economic Regulation Authority with the following information:

\(a\) the names of the parties and the facility details (including, if already registered, the identity of the Market Participants and the Facilities), it intends to grant a SESSM Award to;

\(b\) based on the results from the operation of clause 3.15A.27, the estimated aggregated cost of all SESSM Awards it intends to grant;

\(c\) the proposed SESSM Service Commencement Date;

\(d\) AEMO's reasonable estimate of the cost of procuring the Frequency Co-optimised Essential System Services based on the historic costs of the Frequency Co-optimised Essential System Services (as if the SESSM Awards it intends to grant were not made); and

\(e\) a comparison of the calculated effective Frequency Co-optimised Essential System Service offer prices to the prices for the Frequency Co-optimised Essential System Service in the Real-Time Market within the SESSM Service Timing for the relevant Frequency Co-optimised Essential System Service over the previous 12 months.

3.15A.30. AEMO must provide to the Economic Regulation Authority all

information and data provided by a Market Participant as part of a SESSM Submission within five Business Days of notifying the Economic Regulation Authority of the outcome of its analysis and selection of SESSM Submissions.

Explanatory Note Where AEMO triggers the SESSM, the ERA will review the process and may veto the SESSM Awards and require AEMO to redo the selection process.

3.15A.31. Where AEMO triggered the SESSM, the Economic Regulation

Authority must, within 10 Business Days of AEMO notifying it pursuant to clause 3.15A.29, review the proposed SESSM Awards AEMO intends to grant and determine whether or not to veto the SESSM Awards AEMO intends to grant pursuant to clause 3.15A.32.

3.15A.32. If, following the review pursuant to clause 3.15A.31, the

Economic Regulation Authority reasonably considers that AEMO has not followed the processes in clause 3.15A.26 and clause 3.15A.27, the Economic Regulation Authority may veto the SESSM Awards AEMO intends to grant, and may ask AEMO to revise its selection assessment and approval according to the process in clause 3.15A.26 and clause 3.15A.27.

Explanatory Note Where the ERA triggers the SESSM, the Economic Regulation Authority will review the SESSM Awards and if it considers they will not lower the cost to the market it may veto any or all of the proposed awards. It may also veto an individual award where it was not made in good faith or was incorrect. In the interests of time, the ERA will only have a short period to review awards, but can use information provided through the SESSM process in its wider market surveillance and compliance activities.

3.15A.33. Where the Economic Regulation Authority triggered the SESSM,

the Economic Regulation Authority must, within 20 Business Days of AEMO notifying it pursuant to clause 3.15A.29, review the proposed SESSM Awards AEMO intends to grant and determine whether or not to veto the SESSM Awards AEMO intends to grant pursuant to clause 3.15A.34.

3.15A.34. If, following a review pursuant to clause 3.15A.33, the

Economic Regulation Authority reasonably considers that:

\(a\) the SESSM Awards AEMO intends to grant will not reduce the cost to the market of the relevant Frequency Co-optimised Essential System Service, the Economic Regulation Authority must, within 20 Business Days of AEMO notifying it pursuant to clause 3.15A.29, veto any or all of the SESSM Awards AEMO intends to grant; or

\(b\) a Market Participant’s SESSM Submission does not reflect the costs and assumptions referred to in clause 3.15A.20(b) or clause 3.15A.20(c) or was not provided in good faith in accordance with clause 3.15A.21, the Economic Regulation Authority may, within 20 Business Days of AEMO notifying it pursuant to clause 3.15A.29, veto the SESSM Award AEMO intends to grant to the Market Participant.

Explanatory Note The ERA will have enforcement powers in respect of submissions not made in good faith including seeking a civil penalty The participant should be able to challenge the decision in accordance with the existing dispute resolution clauses.

3.15A.35. Where the Economic Regulation Authority reasonably considers

that a Market Participant has breached the obligation to make a SESSM Submission in good faith in accordance with clause 3.15A.21, then in addition to its powers under clause 3.15A.34(b), the Economic Regulation Authority may do any or all of:

\(a\) issue a warning to the Market Participant pursuant to clause 2.13.36(a); and

\(b\) determine that a breach has taken place, in which case the Economic Regulation Authority may issue a penalty notice in accordance with the WEM Regulations.

Explanatory Note AEMO will be required to publish certain details of SESSM Awards but otherwise the information in a submission will be confidential.

Notification

3.15A.36. If the Economic Regulation Authority notifies AEMO that it

will not veto a SESSM Award AEMO intends to grant in accordance with clause 3.15A.34, AEMO must grant the SESSM Award as submitted to the Economic Regulation Authority in accordance with clause 3.15A.29 and:

\(a\) notify the relevant Market Participants or persons responsible for the Facilities that it has selected to grant a SESSM Award;

\(b\) publish information about the SESSM process including:

i. the number and identity of respondents; and

ii. the information on the SESSM Awards as notified to the Economic Regulation Authority in accordance with clause 3.15A.29, but excluding any information the Economic Regulation Authority may have received under clause 3.15A.30; and

\(c\) publish the terms of each SESSM Award granted including details of:

i. each Facility that was granted a SESSM Award;

ii. the SESSM Service Specification;

iii. the SESSM Award Duration;

iv. the SESSM Availability Payment;

v. the SESSM Offer Cap;

vi. where the SESSM Availability Payment is greater than zero, the Base ESS Quantity for each Dispatch Interval in the SESSM Award Duration; and

vii. the Per-Dispatch Interval SESSM Availability Payment.

Explanatory Note Clause 3.15A.37 is updated to reflect the revised Market Information framework. Rule Participant Market Restricted means information is available to AEMO, the Coordinator, the Electricity Review Board, the ERA, other regulators and the specific Rule Participant. Under the Confidential Information classification these parties will still be able to access this information as necessary.

3.15A.37. Subject to the obligation to publish the information in clause

3.15A.36 the information contained in any SESSM Submissions received

pursuant to the SESSM is Confidential Information.

Explanatory Note Clause 3.15A.38 is intended to be a civil penalty provision.

Obligation to comply

3.15A.38. A Market Participant that was granted a SESSM Award must

comply with the SESSM Service Specification for that SESSM Award.

Explanatory Note The SESSM will be open to new participants that are not registered under the WEM Rules. As such there will be requirements on those participants to report key progress dates to AEMO, in the same way as new Facilities holding Capacity Credits.

SESSM new entrants

3.15A.39. A Market Participant that is granted a SESSM Award for a

Facility that is yet to commence operation must, within any timeframe specified by AEMO:

\(a\) if the Facility is not already registered, register the Facility in accordance with these WEM Rules; and

\(b\) if the Facility is not already accredited, ensure the Facility is accredited to provide the relevant Frequency Co-optimised Essential System Service in accordance with clause 2.34A.1, where the accredited capability for each Dispatch Interval in the SESSM Award Duration must be at least the sum of the Base ESS Quantity and the SESSM Availability Quantity.

3.15A.40. A Market Participant that is granted a SESSM Award for a

facility that is yet to commence operation and for which it is not required to submit a report pursuant to clause 4.27.10 must file a report on progress with AEMO:

\(a\) at least once every three months from the date the SESSM Award is confirmed under clause 3.15A.36; and

\(b\) at least once every month commencing on the date that is six months prior to the SESSM Service Commencement Date,

or as otherwise agreed with AEMO.

3.15A.41. Each report provided pursuant to clause 3.15A.40 must include

any changes to Key Project Dates.

Explanatory Note Where AEMO is of the view that a new participant will not be ready to provide the ESS in the required timeframe then AEMO may require further reporting to be satisfied, revise the service date or cancel the award.

3.15A.42. Within 10 Business Days of receiving a report provided

pursuant to clause 3.15A.40, clause 4.27.10 or this clause 3.15A.42, as applicable, AEMO:

\(a\) must:

i. determine whether, in its reasonable opinion, the Facility, or part of the Facility, is unlikely to have completed all Commissioning Tests by the SESSM Service Commencement Date; and

ii. notify the Market Participant of its decision and provide reasons why the dates have been rejected; and

\(b\) may:

i. require the Market Participant to provide additional information;

ii. require the Market Participant to submit further reports or revise the Key Project Dates; and

iii. revise the SESSM Service Commencement Date or cancel the SESSM Award and, where it does so, must notify the Economic Regulation Authority.

3.15A.43. AEMO or the Economic Regulation Authority may re-trigger the

SESSM if, as result of cancelling the SESSM Award:

\(a\) AEMO reasonably considers that one or more of the matters in clause 3.11.6 are satisfied; or

\(b\) the Economic Regulation Authority reasonably considers that Real-Time Market outcomes are not consistent with the efficient operation of the Real-Time Market in respect of Frequency Co-optimised Essential System Services or the Wholesale Market Objectives.

SESSM performance monitoring

3.15A.44. During the SESSM Service Timing, AEMO must monitor the

quantity of Frequency Co-optimised Essential System Service offered by a Facility that was granted a SESSM Award.

Explanatory Note It is to be expected that AEMO will not exercise its discretion under this clause unless AEMO considered the breach was material or important. This is a secondary measure as the Facility will be paying refunds. How AEMO determines “consistent” failure to adhere to SESSM Award obligations is to be outlined in the WEM Procedure

3.15A.45. Where a Facility that was granted a SESSM Award consistently

fails to offer at least the sum of the SESSM Availability Quantity and the Base ESS Quantity for Dispatch Intervals within the SESSM Service Timing, AEMO may:

\(a\) revise the SESSM Availability Quantity to reflect the average quantity offered in Dispatch Intervals with adjustments for the effect of any Outages for the Facility; and

\(b\) revise the Per-Dispatch Interval Availability Payment by the same ratio as the adjustment to the SESSM Availability Quantity.

WEM Procedure

3.15A.46. AEMO must document in a WEM Procedure the process to be

followed by AEMO and Market Participants in the SESSM. The WEM Procedure must include:

\(a\) the format and content of SESSM Service Specifications;

\(b\) the process for determining the SESSM Service Specifications;

\(c\) the evidence to be provided in respect of the viability of a proposed facility in support of the Key Project Dates provided under clause 3.15A.40 or clause 4.10.1(c);

\(d\) the evidence to be provided in respect of the capability of the Facility to provide the relevant Frequency Co-optimised Essential System Service;

\(e\) the methodology used to select, approve and grant SESSM Awards;

\(f\) the process for monitoring progress of new entrant Facilities that are granted a SESSM Award;

\(g\) the circumstances in which it would cancel the SESSM Award granted to a new entrant Facility that is unlikely to have completed all Commissioning Tests by the SESSM Service Commencement Date;

\(h\) the process for monitoring the performance of Facilities that are granted a SESSM Award;

\(i\) the process for assessing the capability of a facility to provide its nominated SESSM Availability Quantity due to Network Constraints; and

\(j\) the process for revising the SESSM Availability Quantity and the Per-Dispatch Interval Availability Payment under clause 3.15A.45.

Explanatory Note Section 3.15B sets out the regime for a new periodic expressions of interest process to provide a benchmark for market pricing of ESS. It sets out a market sounding process in order for AEMO to test the market. It will not result in the award of SESSM Award but it will assist the ERA to determine whether the current market price is appropriate and whether there is a need to trigger the SESSM. Additionally, the process provides engagement with new facilities to understand the accreditation process and allows participants to prepare submissions in readiness for a short lead-time SESSM procurement. The expressions of interest process is to be run by AEMO but it is noted that AEMO doesn’t use the information collected through the process for any SESSM trigger. Instead, it passes the information on to the ERA. It is anticipated that the first expressions of interest process will be run in early 2022, and transitional rules will be developed to support and give effect to that process.

3.15B. Expressions of Interest for Essential System Services

3.15B.1. From New WEM Commencement Day, at least once every two years,

AEMO must conduct a Frequency Co-optimised Essential System Service expression of interest process.

3.15B.2. In conducting an expression of interest process pursuant to

clause 3.15B.1, AEMO must advertise the call for expressions of interest no later than 20 Business Days prior to the proposed closing date for the expressions of interest.

3.15B.3. In advertising the call for expressions of interest under

clause 3.15B.2, AEMO must:

\(a\) publish a notice on the WEM Website;

\(b\) publish a notice on at least one major tender portal; and

\(c\) issue a Market Advisory.

Explanatory Note Clause 3.15B.4 is updated to reflect the relocation of requirements for publishing data related to FCESS from Chapter 10 to Chapter 7.

3.15B.4. AEMO must include in each notice referred to in clause 3.15B.3:

\(a\) the date and time for lodgement of an expression of interest, which must be in accordance with the form referred to in clause 3.15B.5;

\(b\) contact details for AEMO;

\(c\) a description of the quantity, type and timing of the historic requirements for the Frequency Co-optimised Essential System Services;

\(d\) the location on the WEM Website of detailed historic data on the timing and quantity of the Frequency Co-optimised Essential System Services in accordance with clause 7.13.1I; and

\(e\) the location on the WEM Website of the expression of interest form referred to in clause 3.15B.5.

3.15B.5. AEMO must develop and publish an expression of interest form,

which must include the following fields:

\(a\) the type of the facility;

\(b\) the likely lead time required to develop and commission the facility;

\(c\) the likely network location of the facility;

\(d\) the quantity of each Frequency Co-optimised Essential System Service which could be made available from the facility, which may vary by time of day or year;

\(e\) the fixed costs of being available to offer the relevant Frequency Co-optimised Essential System Service;

\(f\) the variable costs of providing each relevant Frequency Co-optimised Essential System Service;

\(g\) any likely Standing Enablement Minimum limit;

\(h\) the likely cost per MWh of Injecting energy when operating at any Standing Enablement Minimum limit; and

\(i\) the start-up costs of the facility.

3.15B.6. The information contained in any expression of interest form

submitted in accordance with this section 3.15B must be provided in good faith but is not binding on the respondent.

Explanatory Note Clause 3.15B.7 is updated to reflect the revised Market Information framework. Rule Participant Market Restricted means information is available to AEMO, the Coordinator, Electricity Review Board, the Economic Regulation Authority, other regulators and the specific Rule Participant. Under the Confidential Information classification these parties will still be able to access this information as necessary.

3.15B.7. Subject to clause 3.15B.8, the information contained in any

expression of interest form submitted in accordance with this section

3.15B is Confidential Information.

3.15B.8. AEMO must provide all information contained in any expression

of interest form submitted in accordance with this section 3.15B to the Economic Regulation Authority as soon as practicable following the closing date for the expressions of interest.

Explanatory Note Clause 3.15B.9 is amended to remove the reference to clauses 3.15.1A and 3.15.1B, which incorrectly suggest that the ERA is responsible for the review of the ESS Standards and the basis for setting ESS requirements.

3.15B.9. The Economic Regulation Authority may use any information

provided in expressions of interest forms submitted in accordance with this section 3.15B in its monitoring and review functions under these WEM Rules, including its monitoring pursuant to clause 2.16.9, and in deciding whether to trigger the SESSM in accordance with clause 3.15A.2.

Explanatory Note Medium Term PASA is covered under section 3.16 and Shor Term PASA is covered under section 3.17 of the WEM Rules and there are numerous duplication of clauses where similar obligations exist on participants over the different PASA timeframes. The amendments to these sections consolidate much of that duplication. Replacement section 3.16 sets out the obligations with respect to the PASA. Replacement section 3.17 sets out the obligations with respect to Low Reserve Conditions.

Medium and Short Term Planning

3.16. Projected Assessment of System Adequacy

Explanatory Note AEMO will be required to publish a rolling Medium Term PASA and Short Term PASA. The detailed requirements in respect of both Medium Term PASAs and the Short Term PASAs will be largely contained in the WEM Procedure referred to in clause 3.16.10.

3.16.1. AEMO must conduct periodic PASA assessments in accordance with

this section 3.16 and the WEM Procedure referred to in clause 3.16.10 covering the following periods:

\(a\) at least each week of the 36 month period from the starting date of the assessment ("Medium Term PASA"); and

\(b\) at least each day of the seven day period from the starting date of the assessment ("Short Term PASA").

Explanatory Note The objective of the Medium Term PASA and the Short Term PASA are set out in clause 3.16.2. In addition to providing the reason for AEMO producing the Medium Term PASA and the Short Term PASA, the objective will be considered by AEMO when it is determining, when the impact of relevant circumstances have significantly changed the forecast, whether to publish an updated PASA out of cycle or whether to wait for the next date of publication.

3.16.2. The objective of the Medium Term PASA and Short Term PASA is to:

\(a\) provide an assessment of the likelihood and impact of security and reliability related scenarios on the SWIS that may affect the ability of AEMO to maintain Power System Security and Power System Reliability;

\(b\) provide information on the impact of Outages to support AEMO and other Rule Participants in Outage planning processes; and

\(c\) develop demand forecasts to support Rule Participants in making decisions about supply, demand and Outages.

Explanatory Note AEMO will require up to date information from Rule Participants to conduct and prepare the Medium Term PASA and Short Term PASA. Clauses ### 3.16.3 to 3.16.6 set out the obligations on Rule Participants to provide that information, including additional information or clarifications and updated information where the information provided has materially changed. While AEMO will rely on that information, if AEMO considers that it has better information then AEMO will be permitted to substitute that information in place of information submitted by a Rule Participant. Clause 3.16.3 is intended to be a civil penalty provision where the timeframes are unable to be met, similar to the current PASA framework, but subject to the Market Participant's reasonable ability to do so.

3.16.3. A Rule Participant must use best endeavours to provide AEMO with

all required information necessary for AEMO to prepare the Medium Term PASA and Short Term PASA as set out and in accordance with the timeframes specified in the WEM Procedure referred to in clause 3.16.10, including additional information or clarifications sought by AEMO.

3.16.4. AEMO must review any information provided by Rule Participants

in accordance with clause 3.16.3 and, where necessary, seek additional information or clarification in accordance with the process described in the WEM Procedure referred to in clause 3.16.10.

Explanatory Note Clause 3.16.5 is intended to be a civil penalty provision.

3.16.5. Where a Rule Participant becomes aware that the information it

provided AEMO in accordance with clause 3.16.3 has materially changed, then it must re-submit the relevant information to AEMO as soon as practicable, and in any case in accordance with the obligations and timeframes described in the WEM Procedure referred to in clause 3.16.10.

3.16.6. In conducting a Medium Term PASA or a Short Term PASA, AEMO may,

if AEMO considers that it is consistent with the objectives of the Medium Term PASA or Short Term PASA specified in clause 3.16.2, use any information developed by AEMO in performing its functions under these WEM Rules or any other information known to AEMO in addition to, or in place of, information provided by Rule Participants under clause 3.16.3 and clause 3.16.5.

Explanatory Note AEMO produces on a daily basis, a forecast of the following 7 day’s load (Week Ahead Schedule Horizon) at least at a 30 minutes resolution (for outage scheduling and market use) and on a weekly basis, a forecast of daily load for the next 36 months (used for outage planning and power system security and reliability assessment). Both forecasts contribute to assessments of security and reliability requirement compliance over the following 36 months. Clause 3.16.7 deals with the 36 month forecast. The Week Ahead Schedule Horizon is covered in section 7.3.

3.16.7. As soon as practicable following the publication of the Medium

Term PASA, AEMO must publish on the WEM Website the following forecast demand information for the SWIS:

\(a\) AEMO’s determination of the most probable daily peak demand; and

\(b\) any alternative demand forecasts as specified in the WEM Procedure referred to in clause 3.16.10,

for each Trading Day in the 36 month period included in the most recently published Medium Term PASA.

Explanatory Note Most of the detail as to what a Medium Term PASA and a Short Term PASA is required to contain will be specified in the WEM Procedure. However, the core requirements, which are linked to the objectives are specified in clause 3.16.8.

3.16.8. After AEMO conducts each Medium Term PASA or Short Term PASA,

AEMO must publish a report, which has confidential or sensitive data aggregated or redacted (as applicable), summarising the information from the relevant assessment which must, at a minimum, include:

\(a\) any key assumptions made in the assessment;

\(b\) any projected inability to maintain Power System Security;

\(c\) any projected inability to maintain Power System Reliability as assessed in accordance with the WEM Procedure referred to in clause

3.3.2;

\(d\) requirements for and forecast shortfall in Essential System Services; and

\(e\) any other information described in the WEM Procedure referred to in clause 3.16.10.

Explanatory Note Clause 3.16.1 and the WEM Procedure referred to in clause 3.16.10 set out the frequency and timetable for publishing the Medium Term PASA and the Short Term PASA. Clause 3.16.9 provides a power for AEMO to issue an updated Medium Term PASA or Short Term PASA where there has been a material change in the matters in the PASA and AEMO considers that it is consistent with the objectives of the PASA to publish an updated report rather than wait for the next scheduled date.

3.16.9. AEMO may publish an updated version of a Medium Term PASA or a

Short Term PASA outside of the timeline specified in the WEM Procedure referred to in clause 3.16.10 where AEMO considers that there has been a material change in the matters impacting a Medium Term PASA or a Short Term PASA, and publication would be consistent with the objectives of either the Medium Term PASA or Short Term PASA specified in clause

3.16.2 (as applicable).

Explanatory Note Clause 3.16.10 provides a head of power for AEMO to develop a WEM Procedure which contains the details in respect of the PASA framework. This is intended to replace some of the existing details which were 'hard-wired' into the WEM Rules to provide for more flexibility in the PASA framework.

3.16.10. AEMO must develop a WEM Procedure which sets out:

\(a\) the process it follows in:

i. preparing and conducting each Medium Term PASA and Short Term PASA and determining and assessing risks to Power System Security and Power System Reliability; and

ii. preparing demand forecast information for the purposes of this section 3.16;

\(b\) any additional information to be included when publishing the Medium Term PASA or Short Term PASA under clause 3.16.8;

\(c\) the information that AEMO requires from Rule Participants in order to conduct the Medium Term PASA and Short Term PASA which may include, but not be limited to:

i. energy producing unit modelling data and limits;

ii. relevant energy constraints applicable to each Facility or equipment within a Facility;

iii. local modelling information, including inverter availability and locational details as applicable; and

iv. information required in relation to Demand Side Programmes and Electric Storage Resources;

\(d\) the format and timeframes by which the required information in clause 3.16.10(c) must be submitted to AEMO;

\(e\) the process and timeframes by which AEMO may request additional information or clarification from the Rule Participant in respect of the required information in clause 3.16.10(c) submitted to AEMO;

\(f\) the process by which AEMO will use any information developed by AEMO in performing its functions under these WEM Rules or any other information known to AEMO in addition to, or in place of, information provided by Rule Participants under clause 3.16.3 and clause 3.16.5 for the purposes of preparing a Medium Term PASA or a Short Term PASA;

\(g\) the timetable and frequency for which AEMO will conduct and publish a Medium Term PASA and a Short Term PASA;

\(h\) the granularity of information to be published in the Medium Term PASA and the Short Term PASA, where that granularity must be at least that specified in clause 3.16.1; and

\(i\) any additional demand forecast information to be published as per clause 3.16.8.

Explanatory Note Section 3.17 deals with Low Reserve Conditions and AEMO's ability to declare a Low Reserve Condition.

3.17. Low Reserve Conditions

3.17.1. Where AEMO considers that, in accordance with the WEM Procedure

referred to in clause 3.17.11, and taking into account the requirements specified in the WEM Procedure referred to in clause 3.2.3, for a particular period of time there is a risk of:

\(a\) insufficient capacity to meet expected energy demand;

\(b\) load shedding in order to maintain Power System Security; or

\(c\) an Essential System Service shortfall that compromises AEMO’s ability to maintain Power System Security or Power System Reliability,

AEMO may declare a Low Reserve Condition in relation to that period of time (Low Reserve Condition Declaration). To avoid doubt, AEMO may make a Low Reserve Condition Declaration in respect of any or all of the matters in this clause 3.17.1 for a period of time in the present or the future.

Explanatory Note Clauses 3.17.2 and 3.17.3 concern AEMO's obligations to report on Low Reserve Condition declarations by AEMO. These are expected to be infrequent so a 6 month reporting period has been provided.

3.17.2. Every six months from the New WEM Commencement Day, AEMO must

publish a Low Reserve Condition Report in accordance with clause 3.17.3.

3.17.3. A Low Reserve Condition Report must include:

\(a\) whether there have been any Low Reserve Conditions Declarations made;

\(b\) observations in respect of trends as to when and why Low Reserve Conditions Declarations are being made;

\(c\) a summary of the leading factors or causes of any Low Reserve Conditions Declarations made; and

\(d\) a description of the actions that were taken to resolve any Low Reserve Conditions,

during the relevant reporting period.

3.17.4. AEMO must as soon as reasonably practicable publish any Low

Reserve Condition Declaration made.

Explanatory Note Clauses 3.17.5 and 3.17.6 set out the requirements for AEMO's Low Reserve Condition Declaration including where AEMO may cancel or amend the Low Reserve Condition Declaration.

3.17.5. The publication of a Low Reserve Condition Declaration must, to

the extent reasonably practicable, include:

\(a\) the nature and extent of the Low Reserve Condition;

\(b\) the time period over which the Low Reserve Condition Declaration applies;

\(c\) the circumstances that AEMO considers may require it to implement an AEMO Intervention Event in accordance with the WEM Procedure referred to in clause 3.17.11; and

\(d\) if AEMO considers it may be required to implement an AEMO Intervention Event, an estimate of the latest time at which it would need to intervene through a AEMO Intervention Event if the response from the market would not remove the requirement to do so.

3.17.6. Where AEMO has made a Low Reserve Condition Declaration, AEMO

must as soon as reasonably practicable publish notice of:

\(a\) any cancellation of the Low Reserve Condition Declaration; or

\(b\) any amendment to the Low Reserve Condition Declaration where AEMO considers that there is, or has been, a significant change in the relevant conditions impacting the status or circumstances of the Low Reserve Condition.

3.17.7. AEMO may, if it reasonably considers it is required in order to

estimate, or support the estimate of the latest time referred to in clause 3.17.5(d), request information from Rule Participants.

Explanatory Note Clause 3.17.8 is intended to be a civil penalty provision.

3.17.8. A Rule Participant must comply with a request made by AEMO under

clause 3.17.7 within the time specified in the request or another time agreed with AEMO.

3.17.9. AEMO must regularly review an estimate of the latest time

referred to in clause 3.17.5(d) and, where it considers that the estimate is not accurate, publish a revised estimate.

Explanatory Note Clause 3.17.10 is updated to reflect the revised Market Information framework. Rule Participant Market Restricted means information is available to AEMO, the Coordinator, Electricity Review Board, the Economic Regulation Authority, other regulators and the specific Rule Participant. Under the Confidential Information classification these parties will still be able to access this information as necessary.

3.17.10. Any information provided by a Rule Participant in response to a

request under clause 3.17.8 is Confidential Information.

Explanatory Note Clauses 3.17.11 and 3.17.12 provide a head of power for AEMO to develop a WEM Procedure which contains the details in respect of the Low Reserve Condition framework. The approach is the same as the PASA framework as the detail is intended to be contained in the WEM Procedure in order to provide more flexibility.

3.17.11. AEMO must develop a WEM Procedure that sets out how AEMO will

assess a Low Reserve Condition and make a Low Reserve Condition Declaration, which must:

\(a\) describe how AEMO assesses if available capacity has become insufficient to avoid load shedding given reasonably foreseeable conditions and events;

\(b\) describe how AEMO assesses the probability of accredited Essential System Service providers being insufficient to meet the Essential System Service Standards;

\(c\) specify at least three probability levels at which AEMO will make Low Reserve Condition Declaration in relation to a specified period of time, indicating an increasing probability of load shedding (other than the reduction or disconnection of Interruptible Loads);

\(d\) describe how an assessment of the probability levels described in clause 3.17.11(c) applies in relation to different periods of time;

\(e\) describe the notification processes and timeframes AEMO will follow when making a Low Reserve Condition Declaration; and

\(f\) describe the intervention process that AEMO will follow for resolving a Low Reserve Condition, including describing general intervention principles and the interaction with section 7.7.

3.17.12. The assessment of the probability levels described in the WEM

Procedure referred to in clause 3.17.11(d) must be consistent with good electricity industry practice and must take into account:

\(a\) actual and forecast conditions on the SWIS;

\(b\) the likelihood of the occurrence and impact on the SWIS of events that are foreseeable in nature but unpredictable in timing; and

\(c\) a prudent allowance for forecasting errors.

Explanatory Note Replacement section 3.18 sets out the general obligations with respect to outages, and sections 3.18A to 3.18H contain other obligations. The amendments consolidate much of the duplication in sections 3.18 and 3.19 of the current WEM Rules to reflect a single-step outage approval process. Section 3.18 has also been amended by the Tranche 5 Amendments (Schedule B). However, as this section 3.18 reflects the amendments that will apply from the start of the new market, please refer to the Tranche 5 Amendments to see the amendments to section 3.18 that will apply until that time.

3.18. Outages

3.18.1. The obligations specified in this section 3.18 and sections

3.18A to 3.21 apply to Equipment List Facilities and Self-Scheduling

Outage Facilities.

3.18.2. Where a reference is made to an Outage of a Registered Facility

or item of equipment in this section 3.18 and sections 3.18A to 3.21, this includes partial and complete outages and de-ratings of the Registered Facility or item of equipment.

Explanatory Note The definition for 'Outage' is amended in clause 3.18.3. The definition builds on the definitions of “unavailability” introduced by Rule Change Proposals RC_2013_15 and RC_2014_03, but has been restructured to specifically relate to the definition of an Outage. The Tranches 2 and 3 Amendments created a requirement for Demand Side Programmes with Capacity Credits to be included on the Equipment List. However, the outage quantity calculations in clauses 3.21.6 to ### 3.21.8B do not work properly for Demand Side Programmes and produce capacity adjusted outage quantities that are always equal to zero. While the outage quantity calculations could be enhanced to account for Demand Side Programmes properly, the calculation of a non-zero Forced Outage quantity for a Demand Side Programme would not lead to payment of Capacity Cost Refunds because the current refund calculations for Demand Side Programmes in section 4.26 do not consider Forced Outage quantities. Addressing these issues would require material changes, which could be superseded by the outcomes of the RCM Review. For this reason, Energy Policy WA proposes to make the following changes to clauses 3.18.3, ### 3.18.4 and 3.18A.3 to remove Demand Side Programmes from the Equipment List, and to reconsider the treatment of Demand Side Programme outages more holistically as part of the RCM Review. Clause 3.18.3 is further amended to clarify: that Outages of components of an Outage Facility (e.g. a specific Facility Technology Type) are covered by the Equipment Limits of that Facility; that the limitation around having to submit Outages for Semi-Scheduled Facilities and Non‑Scheduled Facilities applies only to Facilities that contain an Intermittent Generating System; the references to Standing Data items in clause 3.18.2(c)(ii); and that the temperature de-rating limitations specified in clause ### 3.18.2(d) do not only apply to Scheduled Facilities.

3.18.3. An outage (“Outage”):

\(a\) occurs where any Outage Capability of an Outage Facility could not, or would not be able to, fully respond to a permitted instruction or direction to the Market Participant or Network Operator from AEMO, that is consistent with, as applicable:

i. the Equipment Limits for the Outage Facility;

ii. in respect of an Outage Facility of a Network Operator, any relevant information or limits relating to the capability of the Outage Facility provided by the Network Operator to AEMO, including information provided to AEMO in accordance with the WEM Procedure referred to in clause 2.27A.10(a); or

iii. any relevant limits specified in an NCESS Contract or SESSM Award.

\(b\) applies to each Outage Capability expected from the Outage Facility as specified in the WEM Procedure referred to in clause 3.18.4;

\(c\) does not occur for an Outage Capability in respect of energy of a Semi-Scheduled Facility or Non-Scheduled Facility that contains an Intermittent Generating System where:

i. there is a shortfall of the intermittent energy source used by the Intermittent Generating System to generate electricity; or

ii. the average reduction of Remaining Available Capacity over the relevant Dispatch Interval is less than:

min (0.1 × Nameplate_Capacity, 10)

where Nameplate_Capacity is the total nameplate capacity of the Facility’s Energy Producing System specified under Appendix 1(c)(i) or Appendix 1(d)(i), as applicable;

\(d\) does not occur for the energy Outage Capability of a Facility as a result of temperature de-rating that is consistent with the Standing Data or Registered Generator Performance Standards for the Facility; and

\(e\) [Blank]

\(f\) does not occur for any Facility where that Facility has failed to comply with a Dispatch Instruction in circumstances detailed in the WEM Procedure referred to in clause 3.18.4.

Explanatory Note Clause 3.18.4 sets out the matters that relate to outages that are to be documented by AEMO in a WEM Procedure. Clause 3.18.4 is amended to provide reference to specific information requirements that must be include in Outage publication, as described in amended clauses 3.22.1, ### 3.22.1A and 3.22.2.

3.18.4. AEMO must develop a WEM Procedure dealing with:

\(a\) the submission, evaluation and approval of Outage Plans, including applicable timelines, which must include a requirement for AEMO to notify a Market Participant or Network Operator where AEMO determines that an Outage Plan or Planned Outage is at risk of rejection, or the Outage Facility is recalled to service from a Planned Outage;

\(b\) the circumstances where a Facility has failed to comply with a Dispatch Instruction for the purpose of clause 3.18.3(f), which should also include where the Facility has a delayed response to a Dispatch Instruction;

\(c\) any requirements for Rule Participants to notify or seek consent to commence or complete an Outage, including any relevant processes to be followed where the Facility or item of equipment is being taken out of service, or returned to service;

\(d\) Outage coordination, which must include:

i. for the purposes of clause 3.18C.3, specifying the matters to be considered when determining whether an Impacted Participant has been unduly impacted by the Outage Plan of an Impacting Participant; and

ii. the processes and any other matters referred to in clause 3.18C.12;

\(e\) information requirements for processes relating to Outages, including, but not limited to:

i. minimum information requirements for an Outage Plan; and

ii. any other supporting information that may be used by AEMO to evaluate or assess an Outage Plan;

\(f\) forecast assumptions and the methodology to be used for Outage Evaluations, which may differ across evaluation timeframes;

\(g\) the methodology for assessing whether there would be a shortfall of available accredited capacity to provide Essential System Services if an Outage Plan is approved;

\(h\) publication of Outage-related information, which must include the information in clauses 3.22.1, 3.22.1A and 3.22.2; and

\(i\) any other matters relating to this section 3.18 and sections 3.18A to 3.21.

Explanatory Note New section 3.18A sets out the obligations and requirements with respect to outage submissions. The Equipment List (and the new Self-Scheduling Outage Facility List) is expanded to include secondary equipment (e.g. protection schemes, SCADA/communications equipment, etc), as an outage of those types of equipment can have significant power system security implications.

3.18A. Equipment List and Self-Scheduling Outage Facilities

3.18A.1. AEMO must maintain a list of all equipment on the SWIS that it

determines is subject to Outage scheduling in accordance with this section 3.18A and sections 3.18B to 3.21 (“Equipment List”).

3.18A.2. AEMO must publish the Equipment List on the WEM Website and

must, as soon as practicable after it becomes aware of an error relating to the Equipment List, or otherwise determines that a change is required to the Equipment List, update the Equipment List to address the error or reflect the change and publish the updated Equipment List on the WEM Website.

3.18A.3. The Equipment List must include:

\(a\) any part of a transmission system that could limit the output of an Energy Producing System that AEMO has included on the Equipment List, however described by AEMO;

\(b\) all Scheduled Facilities holding Capacity Credits;

\(c\) all Semi-Scheduled Facilities holding Capacity Credits with a Standing Data nameplate capacity that equals or exceeds 10 MW and all Semi-Scheduled Facilities containing an Electric Storage Resource;

\(d\) all Energy Producing Systems serving an Intermittent Load under clause 2.30B.2(a) with a System Size that equals or exceeds 10 MW;

\(e\) all Registered Facilities accredited under section 2.34A to provide an Essential System Service, or subject to an NCESS Contract; and

\(f\) any other equipment that AEMO determines must be subject to Outage scheduling to maintain Power System Security and Power System Reliability, which may include secondary network equipment, or communication and control systems, however described by AEMO.

3.18A.4. The Equipment List may specify that an Equipment List Facility

is subject to Outage scheduling by AEMO only at certain times of the year.

3.18A.5. A Market Participant and a Network Operator must schedule

Outages for each of its Equipment List Facilities in accordance with this section 3.18A and sections 3.18B to 3.21.

3.18A.6. AEMO must maintain a list of Self-Scheduling Outage Facilities

that it determines must submit Outage Plans to AEMO in accordance with this section 3.18A and sections 3.18B to 3.21 (“Self-Scheduling Outage Facility List”).

3.18A.7. AEMO must publish the Self-Scheduling Outage Facility List on

the WEM Website and must, as soon as practicable after it becomes aware of an error relating to the Self-Scheduling Outage Facility List, or otherwise determines that a change is required to the Self-Scheduling Outage Facility List, update the Self-Scheduling Outage Facility List to address the error or reflect the change and publish the updated Self-Scheduling Outage Facility List on the WEM Website.

3.18A.8. The Self-Scheduling Outage Facility List must include:

\(a\) any Scheduled Facility, Semi-Scheduled Facility, Non-Scheduled Facility, and any Energy Producing System serving an Intermittent Load and to which clause 2.30B.2(a) relates, that is not an Equipment List Facility; and

\(b\) any other equipment that AEMO determines must submit Outage Plans to AEMO to maintain Power System Security and Power System Reliability however described by AEMO, which may include secondary equipment.

3.18A.9. The Self-Scheduling Outage Facility List may specify that a

Self-Scheduling Outage Facility is required to submit Outage Plans to AEMO only at certain times of the year.

3.18A.10. A Market Participant and a Network Operator must submit Outage

Plans to AEMO for each of its Self-Scheduling Outage Facilities in accordance with this section 3.18A and sections 3.18B to 3.21.

Explanatory Note New section 3.18B sets out the obligations and requirements with respect to the submission of Outage Plans.

3.18B. Submission of Outage Plan

3.18B.1. An outage plan (“Outage Plan”) must:

\(a\) relate to an Outage of the Facility;

\(b\) relate to a specific Outage Capability of the Facility; and

\(c\) only be for the purposes of Outage Facility Maintenance.

3.18B.2. A Market Participant or Network Operator must submit a request

to AEMO to approve an Outage Plan for an Equipment List Facility or Self-Scheduling Outage Facility.

Explanatory Note Clause 3.18B.3 is amended to clarify that the information requirements for an Outage Plan must contain: information on each Facility Technology Type that is impacted by the Outage, including Remaining Available Capacity values (where relevant to the type of Facility); the Remaining Available Capacity of the Facility as a whole (where relevant to the type of Facility); both a commencement and a completion time, each specified as a Dispatch Interval. (the definition of Outage Period is also being amended to clarify that the Outage timeframe is from the start of the commencement Dispatch Interval to the end of the completion Dispatch Interval); and where a condition of the Outage is that equipment must be returned to service periodically through the duration of the Outage (typically in relation to Network Outages), the time periods within the Outage where the equipment will be temporarily returned to service.

3.18B.3. An Outage Plan must contain:

\(a\) details of the Outage Plan including:

i. the Outage Facility affected by the Outage and, where relevant, each Facility Technology Type of the Facility affected by the Outage;

ii the Outage Capabilities affected by the Outage for the Outage Facility and for each Facility Technology Type of the Outage Facility;

iii. a description of the purpose of the Outage;

iv. the Outage Commencement Interval and Outage Completion Interval;

v. an Outage Contingency Plan;

vi. where relevant, the Remaining Available Capacity of each Outage Capability for the Outage Facility;

vii. where relevant, the Remaining Available Capacity for each Facility Technology Type for the Outage Facility;

viii. where relevant, the Outage Return To Service Commencement Interval and Outage Return To Service Completion Interval for each Outage Return To Service Period; and

ix. confirmation of any applicable Availability Declaration Exemption,

as specified in the WEM Procedure referred to in clause 3.18.4;

\(b\) an Outage First Submission Date; and

\(c\) any other details specified in the WEM Procedure referred to in clause 3.18.4.

3.18B.4. Despite clause 3.18B.8(c)(i), a Market Participant or Network

Operator may submit an Outage Plan for approval where, for that Outage Plan ("Availability Declaration Exemption"):

\(a\) the purpose of the Outage is to conduct Mandatory Routine Maintenance and the following conditions are satisfied:

i. the applicable deadline for the proposed Mandatory Routine Maintenance falls within the Outage Period;

ii. the Market Participant or Network Operator is aware that if the Mandatory Routine Maintenance is not undertaken before or during the Outage Period that at least one Outage Capability will otherwise suffer an Outage for part of the Outage Period because the applicable deadline for the Mandatory Routine Maintenance will have passed;

iii. the Market Participant or Network Operator is not aware of any other reason why, if AEMO rejected the Outage Plan, the relevant Outage Capability would otherwise be affected; and

iv. the Outage Plan includes the details of the Mandatory Routine Maintenance; or

\(b\) the Outage will immediately follow a Planned Outage of the relevant Outage Capability, AEMO has not received a notification under clauses 3.18D.9 in respect of the earlier Planned Outage, and the Market Participant or Network Operator is not aware of any other reason why the relevant Outage Capability would otherwise be affected if the Outage Plan did not proceed.

3.18B.5. If, at the time a Market Participant submits an Outage Plan

that is a request for Opportunistic Maintenance for a Scheduled Facility:

\(a\) the Facility is not synchronised;

\(b\) the proposed start time for the relevant Outage Facility Maintenance is before the time when the Facility could be synchronised in accordance with its relevant Equipment Limits; and

\(c\) the Outage Plan includes the proposed start time of the Outage Facility Maintenance,

then, the Market Participant may exclude from the start of the relevant Outage Period in that Outage Plan, any Dispatch Intervals during which the Facility could not be synchronised in accordance with its Equipment Limits, provided that the Market Participant:

\(d\) does not commence the relevant Outage Facility Maintenance until the request is approved by AEMO; and

\(e\) immediately withdraws the request if AEMO has not approved the request prior to the Dispatch Interval in which the relevant Outage Facility Maintenance is intended to commence.

Explanatory Note Clause 3.18B.6 is proposed to be a civil penalty provision.

3.18B.6. An Outage Plan and any information submitted as part of the

request to approve an Outage Plan by a Market Participant or a Network Operator must represent the good faith intention of the Market Participant or Network Operator that the requested Outage is for the purpose of Outage Facility Maintenance.

Explanatory Note Clause 3.18B.7 will not be a civil penalty provision.

3.18B.7. An Outage Plan and any information submitted as part of the

request to approve an Outage Plan for a Self-Scheduling Outage Facility, must represent the good faith intention of the Market Participant or Network Operator that the Outage is for the purpose of Outage Facility Maintenance.

3.18B.8. A Market Participant or Network Operator must submit an Outage

Plan in accordance with the following requirements, as applicable:

\(a\) for an Outage exceeding 24 hours in duration for an Equipment List Facility or a Self-Scheduling Outage Facility, no later than 10:00 AM on the day prior to the Scheduling Day for the Trading Day on which the Outage Commencement Interval falls;

\(b\) for an Outage of up to 24 hours in duration:

i. in respect of a Self-Scheduling Outage Facility, no later than 120 minutes before the Outage Commencement Interval;

ii. in respect of an Equipment List Facility proposing to undertake Opportunistic Maintenance:

1. at any time between:

A. 10:00 AM on the day prior to the Scheduling Day for the Trading Day on which the Outage Commencement Interval falls; and

B. 120 minutes before the Outage Commencement Interval; and

2. where the Outage Period must be separated by at least 24 hours from any other Outage Period for Opportunistic Maintenance for the Equipment List Facility; and

iii. for an Outage of an Equipment List Facility that is not Opportunistic Maintenance, no later than 10:00 AM on the day prior to the Scheduling Day for the Trading Day on which the Outage Commencement Interval falls;

\(c\) where the Market Participant or Network Operator reasonably believes that:

i. except where an Availability Declaration Exemption applies, if the Outage Plan was rejected, the relevant remaining Outage Capability of the Equipment List Facility or Self-Scheduling Outage Facility would otherwise not be affected; and

ii. it would be able to complete the proposed Outage Facility Maintenance and the relevant Outage Capability would no longer be on Outage by the end of the proposed Outage Period; and

\(d\) no earlier than 3 years prior to the day on which the Outage Commencement Interval falls.

Explanatory Note New section 3.18C sets out the obligations and requirements with respect to outage coordination.

3.18C. Outage Coordination

3.18C.1. For the purposes of this section 3.18C:

\(a\) a Network Operator that submits an Outage Plan that impacts an Outage Facility (other than a Load) of a Market Participant is an “Impacting Participant”; and

\(b\) a Market Participant whose Outage Facility (other than a Load) is impacted by a Network Operator is an “Impacted Participant”,

where "impacts" and "impacted" are determined as per the process identified in the WEM Procedure in clause 3.18.4.

3.18C.2. An Outage Plan that is submitted by an Impacting Participant,

who is aware of an impact, must include:

\(a\) a confirmation by the Impacting Participant that it has notified the Impacted Participant; and

\(b\) details of the discussions between the Impacting Participant and Impacted Participants to coordinate the Outage proposed in the Outage Plan and the outcome of those discussions,

at least 6 months prior to the Outage Commencement Interval.

3.18C.3. An Impacted Participant may request AEMO to undertake Outage

coordination where:

\(a\) it reasonably considers that its Outage Facility will be unduly impacted by an Outage Plan having regard to matters specified in the WEM Procedure referred to in clause 3.18.4;

\(b\) it has requested the Impacting Participant to vary the Outage Period or any other component of the Outage Plan in order to minimise the impact on its Outage Facility; and

\(c\) its request is made in accordance with the process specified in the WEM Procedure referred to in clause 3.18.4.

3.18C.4. Following a request from an Impacted Participant under clause

3.18C.3, AEMO must determine, acting reasonably, and in accordance with

the principles specified in clause 3.18C.5 and the WEM Procedure referred to in clause 3.18.4, whether the Outage Plan submitted by the Impacting Participant should be revised and the revisions that are required to be made.

3.18C.5. When making a determination under clause 3.18C.4, AEMO must

have regard to the following principles in the following order of importance:

\(a\) any Power System Security or Power System Reliability implications if the Outage Plan submitted by the Impacting Participant did not occur at the Outage Commencement Interval and for the Outage Period requested;

\(b\) whether the Outage Plan submitted by the Impacting Participant was foreshadowed in the Outage Intention Plan;

\(c\) the notice provided by the Impacting Participant for the Outage Plan and the timing of the request for Outage coordination by the Impacted Participant;

\(d\) the technical reasons for the Outage Facility Maintenance, and the implications for the Outage Facility if the Outage Facility Maintenance is not commenced at the Outage Commencement Interval requested;

\(e\) any reasons, other than financial implications, provided by the Impacting Participant in the Outage Plan as to why the Outage Plan could not be varied as requested by the Impacted Participant;

\(f\) any other principles referred to in clause 3.18C.12(d); and

\(g\) any other information provided by the Impacting Participant or an Impacted Participant to AEMO as part of the Outage coordination.

3.18C.6. AEMO must notify each Impacted Participant and the Impacting

Participant of its determination under clause 3.18C.4 as soon as practicable.

3.18C.7. AEMO may include in the Outage coordination any other Impacted

Participant when undertaking Outage coordination whether or not that Impacted Participant has requested Outage coordination by AEMO.

3.18C.8. In making a determination in respect of the coordination of an

Outage, AEMO must consult, in accordance with any process specified in the WEM Procedure referred to in clause 3.18.4, with each Impacted Participant.

3.18C.9. A Market Participant and Network Operator must comply with a

determination by AEMO under clause 3.18C.4, and, if required, revise or withdraw the Outage Plan.

3.18C.10. Where AEMO notifies a Market Participant or Network Operator

that an Outage Plan submitted by it is unacceptable, and the Economic Regulation Authority does not give AEMO a direction under clause

3.18F.6(e), then AEMO and the Market Participant or Network Operator

must use best endeavours to agree an alternative time for the relevant Outage Plan.

Explanatory Note Clause 3.18C.11 is removed so that the confidentiality status of Outage coordination information can be determined using the standard Market Information classification framework.

3.18C.11. [Blank]

3.18C.12. AEMO must set out the processes for, and any other matters

relating to, Outage coordination in the WEM Procedure referred to in clause 3.18.4, which must include:

\(a\) the conditions that must apply before an Impacted Participant can make a request for Outage coordination under clause 3.18C.3;

\(b\) the types of determinations that AEMO may make under clause

3.18C.4, which may be more than one, including:

i. that no revisions to the Outage Plan submitted by the Impacting Participant are required;

ii. that the Outage Commencement Interval specified in the Outage Plan submitted by the Impacting Participant be revised; or

iii. that the Outage Commencement Interval specified in any Outage Plan submitted by the Impacted Participant be revised;

\(c\) the factors which AEMO must take into account when making a determination under clause 3.18C.4, which must include that the:

i. primary focus must be on the Impacted Participant’s Planned Outages, requested Outage Plans, or Outage Plans foreshadowed in the Outage Intention Plan; and

ii. secondary focus must be on all other factors, such as the time of year; and

\(d\) any principles AEMO must take into account when making a determination under clause 3.18C.4 in addition to the principles specified in clause 3.18C.5.

Explanatory Note New section 3.18D sets out the obligations and requirements with respect to revisions to Outage Plans.

3.18D. Outage Revision

Explanatory Note Clause 3.18D.1 is amended to: clarify that any Remaining Available Capacity for a Planned Outage should not be reduced further than the approved level under this clause; and clarify that the Outage Completion Interval should not be replaced by a later Dispatch Interval under this clause.

3.18D.1. A Market Participant or a Network Operator may revise a Planned

Outage at any time prior to the completion of the Planned Outage, provided:

\(a\) the revised Outage Commencement Interval is not earlier than the previous Outage Commencement Interval;

\(b\) the revised Outage Completion Interval is not later than the previous Outage Completion Interval;

\(c\) any revised Remaining Available Capacity for the Outage Facility, as relevant, is not proposed to be further reduced from the previous submission; and

\(d\) other aspects of the Planned Outage, as specified in the WEM Procedure referred to in clause 3.18.4, are unchanged.

Explanatory Note Clause 3.18D.2 is amended to clarify that once an Outage Plan has been rejected or withdrawn it should no longer be revised.

3.18D.2. An Outage Plan that has not been rejected by AEMO or withdrawn

by the Rule Participant may be revised at any time as long as the revision addresses each of the requirements specified in clause 3.18B.8.

Explanatory Note Clause 3.18D.3 is amended to clarify that multiple Remaining Available Capacity values may be associated with an Outage and that AEMO is not required to re-evaluate and Outage Plan if the proposed change is to increase a Remaining Available Capacity.

3.18D.3. AEMO may, but is not required to, undertake an Outage

Evaluation for an Outage Plan revised under clause 3.18D.1 where the reason for the revision is one or more of the following:

\(a\) the Outage Period is proposed to be reduced;

\(b\) any relevant Remaining Available Capacity for the Outage Facility is proposed to be increased from the previous submission; or

\(c\) the Outage Contingency Plan is proposed to be varied.

3.18D.4. Where an Outage Plan no longer meets the requirements detailed

in 3.18B.8, the Market Participant or Network Operator must revise, or withdraw, the Outage Plan.

3.18D.5. Other than for Opportunistic Maintenance, despite a revision to

an Outage Plan, the Outage Plan will retain the original Outage First Submission Date.

3.18D.6. Subject to clause 3.18D.3, AEMO must assess a revision to an

Outage Plan in accordance with the Outage Evaluation Criteria.

Explanatory Note Clauses 3.18D.7 and 3.18D.8 are intended to be Category C civil penalty provisions.

3.18D.7. A Market Participant or Network Operator that no longer intends

that the relevant Outage Capability of its Outage Facility will be subject to an Outage for the purpose of Outage Facility Maintenance must notify AEMO and withdraw the Outage Plan or Planned Outage as soon as practicable.

3.18D.8. A Market Participant or Network Operator who becomes aware of

any changes to the information in an Outage Plan submitted to AEMO under clause 3.18B.2 must revise or withdraw the Outage Plan as soon as practicable.

Explanatory Note Clause 3.18D.9 is amended to clarify that multiple Remaining Available Capacity values may be associated with the Outage, and the Rule Participant is obligated to revise the Outage Plan if it is aware that any of those no longer meet the availability requirements specified in clause 3.18B.8.

3.18D.9. A Market Participant or Network Operator who is aware, or ought

to be aware in the circumstances that, except where an Availability Declaration Exemption applies, if the Outage Plan was rejected, all of the relevant Outage Capability would still be subject to an Outage for any part of the Outage Period, must as soon as practicable:

\(a\) revise the Outage Plan to amend the Outage Period or increase any relevant Remaining Available Capacity (or both) to meet the requirements specified in clause 3.18B.8;

\(b\) if the Outage Plan is not approved, withdraw the Outage Plan; or

\(c\) if the Outage Plan is approved, notify AEMO.

Explanatory Note New section 3.18E sets out the obligations and requirements with respect to evaluation of Outage Plans.

3.18E. Outage Evaluation

Explanatory Note Clause 3.18E.1 is amended to clarify that AEMO must evaluate an Outage Plan as soon as practicable after it has been revised.

3.18E.1. For each Outage Plan that AEMO is required to undertake an

Outage Evaluation, AEMO must:

\(a\) where possible to do so, and subject to all required information being available, undertake the Outage Evaluation as soon as practicable after the Outage Plan has been submitted or revised;

\(b\) notify the relevant Market Participant or Network Operator as soon as practicable of the outcome of the Outage Evaluation;

\(c\) publish the status of the Outage Plan following completion of the Outage Evaluation, including an assessment of whether a Planned Outage is at risk of rejection; and

\(d\) keep a record of the Outage Evaluation, together with the reasons for each Outage Evaluation and assessment.

3.18E.2. For an Outage Plan that is not yet approved, if:

\(a\) the relevant Outage Capability is subject to a Planned Outage and AEMO has received a notification under clause 3.18D.9 in relation to that Planned Outage;

\(b\) the relevant Outage Capability is subject to a Planned Outage and AEMO is aware that it should have received a notification under clause

3.18D.9 in relation to that Planned Outage; or

\(c\) the relevant Outage Capability is subject to a Forced Outage,

then, AEMO must delay the Outage Evaluation for that Outage Plan until:

\(d\) the relevant Outage Capability is returned to service; or

\(e\) AEMO receives evidence to its satisfaction from the Market Participant or Network Operator that the relevant Outage Capability would not be subject to an Outage before the Outage Commencement Interval in the Outage Plan that is awaiting approval.

3.18E.3. AEMO must reject an Outage Plan for an Equipment List Facility

or Self-Scheduling Outage Facility if it is aware that any of the requirements for an Outage Plan in clause 3.18B.8 have not been met or complied with.

3.18E.4. If an Outage Plan for a Self-Scheduling Outage Facility is not

rejected by AEMO under clause 3.18E.3, AEMO is deemed to have approved the Outage Plan from the time AEMO received the request for approval of the Outage Plan under clause 3.18B.2.

3.18E.5. AEMO must evaluate all Outage Plans for Equipment List

Facilities as required by these WEM Rules by assessing the Outage Plan against the Outage Evaluation Criteria (“Outage Evaluation”). This evaluation must:

\(a\) be undertaken on Outage Plans in the order in which they are submitted to AEMO unless AEMO considers it is more efficient or effective to evaluate Outage Plans out of order;

\(b\) be based on the information available to AEMO at the time the Outage Evaluation is undertaken;

\(c\) occur when an Outage Plan is received or revised and where required as part of the PASA studies; and

\(d\) where an Availability Declaration Exemption applies in respect of Mandatory Routine Maintenance, not result in the Outage Plan being rejected due to that Mandatory Routine Maintenance not being completed before the applicable deadline.

3.18E.6. In respect of an Outage Evaluation for an Outage Plan of an

Equipment List Facility for Opportunistic Maintenance, AEMO:

\(a\) may reject the Outage Plan if it considers there is inadequate time to undertake the Outage Evaluation;

\(b\) is deemed to have rejected the Outage Plan 120 minutes before the Outage Commencement Interval if the Outage Evaluation has not been completed and the relevant Market Participant or Network Operator has not been notified of the Outage Evaluation outcome; and otherwise

\(c\) must approve the Outage Plan if it considers the Outage Evaluation Criteria has been met.

3.18E.7. In respect of an Outage Evaluation for an Outage Plan of an

Equipment List Facility that is not for Opportunistic Maintenance, AEMO:

\(a\) must approve or reject each Outage Plan using the Outage Evaluation Criteria and in accordance with the WEM Procedure referred to in clause 3.18.4;

\(b\) must not show bias towards a Market Participant or Network Operator in evaluating the Outage Plan other than as required by the process for prioritisation set out in the WEM Procedure referred to in clause 3.18.4;

\(c\) may reject an Outage Plan where the Outage Plan First Submission Date was less than six weeks before the Outage Commencement Interval without evaluation if, in its opinion, the submitting party has not allowed adequate time for the Outage Plan to be assessed;

\(d\) may approve an Outage Plan where the Outage Evaluation Criteria are met for the Outage Period;

\(e\) may approve an Outage Plan, despite the Outage Evaluation Criteria not being met, if AEMO reasonably considers that rejecting the Outage Plan would pose a greater threat to Power System Security or Power System Reliability over the long term;

\(f\) is deemed to have rejected the Outage Plan at 2:00 PM on the Trading Day two days prior to the Outage Commencement Interval, if the Outage Evaluation has not been completed and the relevant Market Participant or Network Operator has not been notified of the Outage Evaluation outcome; and

\(g\) may consider more than one Outage Plan together and approve or reject the Outage Plans as a group.

3.18E.8. The Outage Evaluation Criteria ("**Outage Evaluation

Criteria**") is met when in AEMO’s opinion there will be sufficient Network in service and capacity available for dispatch to maintain Power System Security and Power System Reliability in accordance with the Power System Security Principles and Power System Reliability Principles, taking into account the methods and criteria specified in the WEM Procedure referred to in clause 3.18.4.

3.18E.9. AEMO may undertake a single Outage Evaluation for a group of

related Outage Plans. When a group of Outage Plans that are considered together do not meet the Outage Evaluation Criteria, then AEMO must follow the process for prioritisation in the WEM Procedure referred to in clause 3.18.4.

Explanatory Note Clause 3.18E.10 is amended to: remove clause 3.18E.10(d), because it is covered by clause ### 3.18E.10(e) (now renumbered to clause 3.18E.10(d); clarify that where a Rule Participant has revised an Outage Plan prior to it being approved, while AEMO will generally give priority based on its first submission date, AEMO must also consider the impact of the change on other Outage Plans that have since been submitted (based on public information) - for example, if the revision is significant and is made very close to the commencement time, this may impact another Rule Participant’s Outage submission that has been made in good faith; and clarify that there may be multiple Remaining Available Capacity quantities associated with an Outage Plan.

3.18E.10. AEMO must set out the processes for, and any other matters

relating to, the prioritisation of Outage Plans in the WEM Procedure referred to in clause 3.18.4, which must include, subject to maintaining Power System Security and Power System Reliability, that AEMO will:

\(a\) give priority to rescheduled Outage Plans that were approved and subsequently recalled or rejected by AEMO over unapproved Outage Plans;

\(b\) give priority to approved Outage Plans over unapproved Outage Plans;

\(c\) give priority to any Outage Plans that are not Opportunistic Maintenance;

\(d\) give priority to Outage Plans in the order of the Outage First Submission Date, subject to reviewing the impact of a changed Outage Period on other Outage Plans that have been submitted; and

\(e\) consider:

i. the technical reasons for the Outage Facility Maintenance;

ii. the technical implications for the relevant equipment if the Outage Facility Maintenance is not carried out; and

iii. the ability to reschedule Outage Plans including considering the Remaining Available Capacity, as relevant, for the relevant Outage Capability over the Outage Period.

3.18E.11. AEMO may reject a Planned Outage for an Equipment List

Facility or a Self-Scheduling Outage Facility where:

\(a\) there has been a change in power system conditions after AEMO has approved the relevant Outage Plan; and

\(b\) AEMO considers that, as a result of the change, either:

i. the Planned Outage would no longer be approved when applying the Outage Evaluation Criteria; or

ii. in the case of a Self-Scheduling Outage Facility, if the Planned Outage were to proceed it would result in a risk to Power System Security or Power System Reliability.

3.18E.12. AEMO must inform the relevant Market Participant or Network

Operator immediately if it makes a decision to reject a Planned Outage under clause 3.18E.11.

Explanatory Note Clause 3.18E.13 is amended to clarify that if AEMO rejects an Outage Plan there is no need for a Market Participant or Network Operator to subsequently revise or withdraw it. A rejected Outage Plan is no longer able to be revised as per the amendment to clause 3.18D.2.

3.18E.13. Where AEMO rejects an Outage Plan in accordance with this

section 3.18E, AEMO must provide reasons to the Rule Participant that submitted the Outage Plan.

Explanatory Note Clause 3.18E.14 is proposed to be a Category C civil penalty provision.

3.18E.14. Subject to clause 3.18E.15, a Market Participant and a Network

Operator must comply with a decision by AEMO not to approve or to reject an Outage Plan, and the relevant Market Participant or Network Operator must ensure that the proposed Outage is not taken unless otherwise approved under a revision to the Outage Plan or new Outage Plan.

3.18E.15. A Market Participant and a Network Operator is not required to

comply with clause 3.18E.14 if such compliance would endanger the safety of any person, damage equipment, or violate any applicable law.

3.18E.16. Where a Market Participant or a Network Operator cannot comply

with clause 3.18E.14, the Market Participant or Network Operator must notify AEMO as soon as practicable and provide the reason why it cannot comply, which must be a reason specified in clause 3.18E.15.

Explanatory Note New section 3.18F sets out the obligations and requirements with respect to AEMO’s decisions that may be reviewed by the ERA.

3.18F. Economic Regulation Authority Review of AEMO Decisions

3.18F.1. A Market Participant or Network Operator responsible for an

Equipment List Facility may request the Economic Regulation Authority to reassess the inclusion of the Equipment List Facility on the Equipment List.

Explanatory Note Clause 3.18F.2 is equivalent to existing clause 3.18.3(b).

3.18F.2. Following a request by a Market Participant or Network Operator

under clause 3.18F.1, the Economic Regulation Authority must consult with AEMO and the Market Participant or Network Operator as to whether the Equipment List Facility should remain on the Equipment List.

Explanatory Note Clause 3.18F.3 is equivalent to existing clause 3.18.3(c).

3.18F.3. The Economic Regulation Authority may direct AEMO to remove an

Equipment List Facility from the Equipment List where, as a result of a reassessment requested under clause 3.18F.1, it considers that:

\(a\) AEMO has not followed the WEM Rules or WEM Procedure referred to in clause 3.18.4; and

\(b\) if AEMO had followed the WEM Rules and the WEM Procedure referred to in clause 3.18.4, then the Equipment List Facility would not have been on the Equipment List.

Explanatory Note Clause 3.18F.4 is equivalent to existing clause 3.18.3(d).

3.18F.4. If the Economic Regulation Authority gives AEMO a direction

under clause 3.18F.3, then AEMO must, as soon as practicable, remove the Equipment List Facility specified in the direction from the Equipment List and publish the updated Equipment List on the WEM Website.

Explanatory Note Clause 3.18F.5 is equivalent to existing clause 3.18.15 with amendments to reflect outage policy changes and minor drafting improvements.

3.18F.5. Where AEMO notifies a Market Participant or Network Operator

that an Outage Plan has been rejected by AEMO, the Market Participant or Network Operator may apply to the Economic Regulation Authority to reassess the decision on the grounds that AEMO has not followed the WEM Rules or the WEM Procedure referred to in clause 3.18.4 within ten Business Days of being notified of AEMO’s decision and no later than five Business Days prior to the date of the proposed Outage Commencement Interval.

3.18F.6. If an application under clause 3.18F.5 to reassess AEMO’s

decision is made:

\(a\) the Market Participant or Network Operator must submit a written application to the Economic Regulation Authority, and forward a copy to AEMO, stating the reasons why it considers that AEMO’s decision should be reassessed and providing any supporting evidence;

\(b\) until the Economic Regulation Authority completes its reassessment, AEMO’s decision continues to have effect;

\(c\) AEMO must submit records relating to the Outage Evaluations relevant to the assessment of the Outage Plan rejected to the Economic Regulation Authority within two Business Days of being informed of an application by a Market Participant or Network Operator under clause

3.18F.6(a);

\(d\) the Economic Regulation Authority must consult with AEMO and the Market Participant or Network Operator concerning the Outage Plan and must make a complete assessment by the earlier of ten Business Days of receiving the application under clause 3.18F.5 or two Business Days prior to the date of the proposed Outage Commencement Interval;

\(e\) the Economic Regulation Authority may direct AEMO that the Outage Plan should be approved where it finds that:

i. AEMO did not follow the WEM Rules or the WEM Procedure referred to in clause 3.18.4; and

ii. if AEMO had followed the WEM Rules or the WEM Procedure referred to in clause 3.18.4, the Outage Plan would have been approved; and

\(f\) AEMO must approve the Outage Plan if directed by the Economic Regulation Authority in accordance with clause 3.18E.6(e).

Explanatory Note New section 3.18G sets out the Outages framework review by the ERA.

3.18G. Economic Regulation Authority Study of the Impact of Network

Operator Outages on the Market

Explanatory Note Clause 3.18G.1 requires the ERA to conduct economic study on the impact of Network Operator Outages on the market against the Wholesale Market Objectives.

3.18G.1. At least once in every five year period starting from the New

WEM Commencement Day, the Economic Regulation Authority must conduct an economic study on the impact of Network Operator Outages on the market against the Wholesale Market Objectives. In conducting the study, the Economic Regulation Authority must have regard to the most recent review conducted under clause 3.18GA.1.

Explanatory Note Clause 3.18G.2 requires the ERA to publish a report following completion of its economic study on the impact of Network Operator Outages on the market against the Wholesale Market Objectives.

3.18G.2. At the conclusion of a review under clause 3.18G.1, Economic

Regulation Authority must publish:

\(a\) the inputs and results of the economic study;

\(b\) all submissions received by Rule Participants as part of a consultation process conducted by the Economic Regulation Authority and any responses to issues raised in those submissions; and

\(c\) a report containing any recommended changes, formulated as one or more WEM Rule Change Proposals , recommended WEM Procedure changes or recommended changes to other relevant instruments (e.g. Access Code).

Explanatory Note Clause 3.18G.3 requires the ERA to submit a Rule Change Proposal or initiate a Procedure Change Process with respect to any recommended changes in its report.

3.18G.3. If the Economic Regulation Authority recommends any changes to

the WEM Rules or WEM Procedures in a report published under clause

3.18G.2(c), the Economic Regulation Authority must submit a Rule Change

Proposal in accordance with clause 2.5.1 to effect the change.

3.18GA. Coordinator Review of Outage Planning Process

3.18GA.1. At least once in every five year period starting the New WEM

Commencement Day, the Coordinator, with the assistance of AEMO, must conduct a review of the Outage planning process against the Wholesale Market Objectives. At a minimum, the review must include:

\(a\) a technical study of the effectiveness of the Outage Evaluation Criteria; and

\(b\) a public consultation process with Rule Participants,

and must have regard to the most recent review conducted under clause

3.18G.1.

3.18GA.2. At the conclusion of a review under clause 3.18GA.1, the

Coordinator must publish:

\(a\) the inputs and results of the technical study;

\(b\) all submissions received by Rule Participants as part of the consultation process and any responses to issues raised in those submissions; and

\(c\) a report containing any recommended changes to the Outage planning process, formulated as one or more WEM Rule Change Proposals, recommended WEM Procedure changes or recommended changes to other relevant instruments (e.g. Access Code).

3.18GA.3. If the Coordinator recommends any changes to the WEM Rules in

a report published under clause 3.18GA.2(c), the Coordinator must progress a Rule Change Proposal in accordance with clause 2.5.1 to effect the change.

Explanatory Note New section 3.18H sets out the obligations and requirements with respect to Outage compensation. Market Participants will continue, subject to the same existing conditions, to be eligible for financial compensation in the event of late cancellation of an approved outage or recall of the Outage Facility to service. Network Operators will be unable to claim compensation in the event of late cancellation of an approved outage or recall. The amount of compensation, including when it will be paid, is moved from existing clause 3.19.12(f) to Chapter 9 – Settlement.

3.18H. Outage Compensation

3.18H.1. Where AEMO rejects a Planned Outage within 48 hours of the

Outage Commencement Interval for the Outage Plan then, subject to clause

3.18H.2, the Market Participant (“the claimant”) may claim

compensation from AEMO.

3.18H.2. Compensation will only be paid if the Outage Plan rejected by

AEMO under clause 3.18H.1 had an Outage Plan First Submission Date that was at least one year in advance of the Outage Commencement Interval for the Outage Plan.

3.18H.3. Compensation will be limited to the additional maintenance

costs directly incurred by the claimant by AEMO rejecting the relevant Outage Plan. For the avoidance of doubt, compensation will not be paid for Opportunistic Maintenance.

3.18H.4. A claimant wishing to make a claim for compensation under

clause 3.18H.1 must submit a written request to AEMO within three months of AEMO’s decision to reject the approved Outage Plan, and provide invoices and other documents evidencing the costs referred to in clause

3.18H.3.

3.18H.5. AEMO must in respect of a claim for compensation under clause

3.18H.1:

\(a\) determine the amount of compensation to be paid to a claimant, within one month of AEMO receiving the claim;

\(b\) notify the claimant of the amount determined and the reasons for its decision; and

\(c\) calculate the amount of compensation on a per Trading Interval basis for the purposes of clause 9.11.4 for every Trading Interval covered by the Outage Period.

Explanatory Note Outage Intention Plans will replace the somewhat unclear current PASA framework provisions which allow AEMO to require Market Participants to provide information about their future availability. Market Participants and Network Operators will be required to submit a yearly Outage Intention Plan to AEMO. The information provided in each Outage Intention Plan is less than that required for an Outage, and will be specified in a WEM Procedure. AEMO will be required to develop and publish an Annual Consolidated Outage Intention Plan for information purposes. It will not be binding on Equipment List Facilities and Self-Scheduling Outage Facilities. A Market Participant may still submit an Outage Plan for approval up to three years ahead. The intention is that Outage Intention Plans will be used by all Market Participants and Network Operators to plan Outages, with any conflicts to be resolved before AEMO publishes an Annual Consolidated Outage Intention Plan. The intention is for AEMO to publish Annual Consolidated Outage Plans for the 2024 calendar year which will require Market Participants and Network Operators to submit Outage Intention Plans from 2023 – transitional provisions will deal with implementation timing. This section 3.19 replaces the existing section 3.19.

3.19. Outage Intention Plans

3.19.1. Subject to clause 3.19.3, Market Participants and Network

Operators must submit an Outage Intention Plan that complies with the requirements contained in the WEM Procedure referred to in clause

3.19.11 to AEMO by 1 March annually. An Outage Intention Plan:

\(a\) must represent the Market Participant's or Network Operator's reasonable estimate of its expected Outages for the following calendar year; and

\(b\) is not binding on AEMO, the Market Participants or Network Operators.

3.19.2. A Market Participant or Network Operator may revise an Outage

Intention Plan submitted in accordance with clause 3.19.1 before 1 March annually.

3.19.3. A Market Participant and a Network Operator is not required to

comply with this section 3.19 in relation to a Self-Scheduling Outage Facility unless directed by AEMO in accordance with clause 3.19.4.

3.19.4 AEMO may direct a Self-Scheduling Outage Facility that is

required to comply with this section 3.19.

3.19.5. AEMO must confirm receipt of an Outage Intention Plan or a

revised Outage Intention Plan submitted by a Market Participant or a Network Operator in accordance with clause 3.19.1, 3.19.2 or 3.19.9, as applicable.

3.19.6. AEMO must consider all validly submitted Outage Intention Plans

for the relevant year and develop and publish an Interim Annual Consolidated Outage Intention Plan for the following calendar year in accordance with the WEM Procedure referred to in clause 3.19.11 by 1 May each year.

3.19.7. AEMO may use and consider any relevant information held by it or

matters it deems relevant in considering Outage Intention Plans submitted by Market Participants and Network Operators and developing an Interim Annual Consolidated Outage Intention Plan or a Final Annual Consolidated Outage Intention Plan.

3.19.8. In the event that Outage Intention Plans validly submitted by

Market Participants or Network Operators under clauses 3.19.1, 3.19.2 or

3.19.9 conflict, AEMO must notify the affected Market Participants or

Network Operators.

3.19.9. A Market Participant or Network Operator may revise, resubmit or

withdraw an Outage Intention Plan following publication of the Interim Annual Consolidated Outage Intention Plan under clause 3.19.6 by 1 July the same year.

3.19.10. AEMO must publish the Final Annual Consolidated Outage

Intention Plan for the following calendar year by 1 September annually.

3.19.11. AEMO must develop and maintain a WEM Procedure that:

\(a\) specifies the information that must be included in an Outage Intention Plan;

\(b\) sets out the process AEMO will follow in carrying out an Interim Annual Consolidated Outage Intention Plan and Final Annual Consolidated Outage Intention Plan, including the methodology and timetable to develop the Interim Annual Consolidated Outage Intention Plan and Final Annual Consolidated Outage Intention Plan; and

\(c\) the process and requirements for the revision and resubmission of Outage Intention Plans under clause 3.19.9.

Explanatory Note The amendments to replacement clause 3.20.1 are consequential amendments resulting from the new Operating States. Clause 3.20.1 is further amended to clarify that AEMO cannot “reject” a Planned Outage once it has commenced but can issue an Outage Recall Direction to return the Outage Facility to service early.

3.20. Outage Recall

3.20.1 In order to maintain Power System Security or Power System

Reliability, AEMO may, during the Outage Period for a Planned Outage, direct a Market Participant or Network Operator to return an Outage Facility to service in accordance with the relevant Outage Contingency Plan, or take other measures contained in the relevant Outage Contingency Plan ("Outage Recall Direction")

Explanatory Note Clause 3.20.2 is amended to clarify that Rule Participants are required to revise their Outage Plans following an Outage Recall Direction to reflect the correct completion time, but are not required to withdraw the Outage Plan. Clause 3.20.2 is a civil penalty provision.

3.20.2. Subject to clause 3.20.3, Market Participants and Network

Operators must comply with an Outage Recall Direction issued by AEMO under clause 3.20.1 and revise the relevant Outage Plan as soon as practicable.

3.20.3. Market Participants and Network Operators must comply with an

Outage Recall Direction issued by AEMO under clause 3.20.1 unless such compliance would endanger the safety of any person, damage equipment, or violate any applicable law.

3.20.4. Where a Market Participant or a Network Operator cannot comply

with an Outage Recall Direction issued by AEMO under clause 3.20.1, the Market Participant or Network Operator must notify AEMO as soon as practicable and provide the reasons why it cannot comply with the direction which must be a reason described in clause 3.20.3.

Explanatory Note Section 3.21 is deleted and replaced with new provisions addressing Forced Outages only.

3.21. Forced Outages and Outage Quantity Calculations

Explanatory Note Clause 3.21.1 defines a Forced Outage and is equivalent to existing clause 3.21.1. Clause 3.21.1 is further amended to correct a clause reference error in clause 3.21.1(a) and use the correct defined term in clause 3.21.1(b).

3.21.1. A Forced Outage is any Outage, or part of any Outage, of an

Outage Facility that has not been approved by AEMO, including:

\(a\) Outages as a result of:

i. a direction from AEMO under clause 2.28.3B; or

ii. a non-compliance with a Registered Generator Performance Standard;

\(b\) any Dispatch Intervals of an Outage that commence prior to its approved Outage Commencement Interval, or extend beyond its approved Outage Completion Interval; and

\(c\) where the Market Participant or Network Operator does not follow an Outage Recall Direction from AEMO to return the equipment to service within the time specified in the Outage Contingency Plan,

but does not include Outages of a Facility that occur within a period in which the Facility is subject to an approved Commissioning Test Plan and are caused by a failure of the Facility’s equipment during that Commissioning Test Period.

Explanatory Note Clause 3.21.2(a) is equivalent to existing clause 3.21.4 and is intended to be a Category C civil penalty provision. Clause 3.21.2(a) is amended to align generally with the quantities and structure of data provided for an Outage Plan under clause 3.18B.3, accounting for necessary differences with Forced Outages such as including the cause of the outage. Clause 3.21.2(b) requires full preliminary Forced Outage notification information to be provided to AEMO. The intent is to provide as much information as is known within 24 hours so other Rule Participants are aware. Clause 3.21.2(b) is amended to clarify that the Rule Participant’s obligation is provide the information specified in clause 3.21.2(a) as well as the time that this information was first notified to AEMO, to support transparency and compliance monitoring. The clause has also been restructured for ease of reading. Clause 3.21.2(c) is equivalent to existing clause 3.21.7, requiring full details to the Forced Outage notification information including any amendments to be provided to AEMO.

3.21.2. If an Outage Facility suffers, or will suffer, a Forced Outage,

the relevant Market Participant or Network Operator must:

\(a\) as soon as practicable after the Market Participant or Network Operator becomes aware of the Forced Outage, notify AEMO in accordance with the WEM Procedure referred to in clause 3.21.10 of:

i. the Outage Facility affected by the Outage and, where relevant, each Facility Technology Type of the Outage Facility affected by the Outage;

ii. the Outage Capabilities affected by the Outage for the Outage Facility and for each Facility Technology Type of the Outage Facility;

iii. the cause of the Outage;

iv. the date and time the Outage commenced or is expected to commence;

v. the date and time the Outage ended or is expected to end;

vi. where relevant, an estimate of the Remaining Available Capacity of each Outage Capability for the Outage Facility;

vii. where relevant, an estimate of the Remaining Available Capacity for each Facility Technology Type of the Outage Facility; and

viii. any other details specified in the WEM Procedure referred to in clause 3.21.10;

\(b\) provide AEMO with full available details of the Forced Outage referred to in clause 3.21.2(a), as well as the time that the information required in clause 3.21.2(a) was first notified to AEMO, in accordance with the WEM Procedure referred to in clause 3.21.10:

i. as soon as practicable;

ii. using best endeavours to provide AEMO with the full available details within 24 hours of the Forced Outage occurring; and

iii. in all cases no later than the end of the next Business Day of the Forced Outage occurring;

\(c\) must inform AEMO of any material change to the information provided under this clause as soon as practicable after becoming aware of that change, in the manner prescribed in the WEM Procedure referred to in clause 3.21.10; and

\(d\) notwithstanding the requirements of this clause 3.21.2, in respect of each affected Trading Day, as soon as practicable, and in any case no later than the end of the day that is fifteen calendar days after the day on which the Trading Day ends, provide AEMO with any further information or changes to the Forced Outage notification information provided under clause 3.21.2(b).

3.21.3. Where additional information relating to a Forced Outage becomes

available after the timeframes specified in clause 3.21.2:

\(a\) if the additional information is held by a Market Participant or Network Operator, the Market Participant or Network Operator must notify AEMO of the additional information as soon as practicable;

\(b\) AEMO may require a Market Participant or Network Operator to submit a Forced Outage reflecting that additional information; and

\(c\) a Market Participant or Network Operator may request AEMO to allow it to enter or revise a Forced Outage in order to reflect that additional information, including where that may result in the Forced Outage being withdrawn.

3.21.4. Where AEMO receives a request under 3.21.3(c), AEMO must review

the information provided by the Market Participant or Network Operator and determine whether there is sufficient evidence to support the Forced Outage being revised or withdrawn, and must notify the Market Participant or Network Operator of its determination as soon as practicable.

Explanatory Note Clause 3.21.5 is equivalent to existing clause 3.21.3.

3.21.5. AEMO must keep a record of all Forced Outages of which it is

notified of under clause 3.21.2(a) or otherwise made aware.

Explanatory Note Clause 3.21.6 sets out the formula for determining the Outage quantity for use in calculating the capacity adjusted outage quantities in subsequent formulas. Further amendments to clause 3.21.6 to clarify that: the calculations (which are used as input to CAPO/CAFO calculations) are only required for Separately Certified Components that are Non‑Intermittent Generating Systems or Electric Storage Resources; the maximum capacity figures for each Separately Certified Component are as per the relevant Standing Data quantities, which are based on sent-out quantities and, for an Electric Storage Resource, relate to the maximum quantity that can be delivered continuously for the full Electric Storage Resource Obligation Duration; and the Remaining Available Capacity figures for each Separately Certified Component relate to sent-out figures that are net of other loads behind the connection point and, for an Electric Storage Resource, relate to the maximum quantity that can be delivered continuously for the full Electric Storage Resource Obligation Duration. restructure the clause as a definition of a quantity calculated for a Planned Outage or Forced Outage (“Outage Quantity”) rather than a specific obligation on AEMO to determine the quantity (which could be interpreted as meaning that AEMO only needed to determine the quantity for Dispatch Interval once); and further clarify how the inputs to the calculations are determined.

3.21.6. The Outage Quantity for a Planned Outage or Forced Outage o of a

Separately Certified Component c of a Registered Facility that is a Non‑Intermittent Generating System or Electric Storage Resource for a Dispatch Interval DI that is included in Planned Outage or Forced Outage o is:

Q(c,DI,o)= PrevRAC(c,DI,o) − RAC(c,DI,o)

where:

\(a\) PrevRAC(c,DI,o) is equal to:

i. MaxCap(c,DI), if Planned Outage or Forced Outage o was the first relevant outage to be submitted; or

ii. otherwise, the applicable Remaining Available Capacity for the relevant outage that was submitted most recently prior to the submission time of Planned Outage or Forced Outage o,

where relevant outage means a Planned Outage or Forced Outage for energy for Separately Certified Component c that includes Dispatch Interval DI;

\(b\) RAC(c,DI,o) is the applicable Remaining Available Capacity for Planned Outage or Forced Outage o;

\(c\) MaxCap(c,DI) is:

i. if Separately Certified Component c is a Non‑Intermittent Generating System, the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply to the relevant Network from the Non-Intermittent Generating System under optimal conditions, as specified under Appendix 1(b)(x) or Appendix 1(c)(x) as applicable; or

ii. if Separately Certified Component c is an Electric Storage Resource, the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply across the Electric Storage Resource Obligation Duration to the relevant Network from the Electric Storage Resource under optimal conditions, as specified under Appendix 1(b)(xii) or Appendix 1(c)(xii) as applicable; and

\(d\) the applicable Remaining Available Capacity for a Planned Outage or Forced Outage is the Remaining Available Capacity under the Planned Outage or Forced Outage for Separately Certified Component c in Dispatch Interval DI for the applicable energy Outage Capability, which is:

i. if Separately Certified Component c is a Non-Intermittent Generating System, sent out capacity, net of embedded and Parasitic Loads, available for supply to the relevant Network from the Non-Intermittent Generating System; or

ii. if Separately Certified Component c is an Electric Storage Resource, sent out capacity, net of embedded and Parasitic Loads, available for supply across the Electric Storage Resource Obligation Duration to the relevant Network from the Electric Storage Resource.

Explanatory Note Clause 3.21.7 sets out the formula for determining the Capacity Adjusted Forced Outage Quantity which is used in other calculations relating to the obligations associated with Reserve Capacity . Clauses 3.21.7 to 3.21.8B are amended and new clause 3.21.8C added to improve clarity, apply standard formatting and ensure that all the required capacity adjusted outage quantities are defined. Clause 3.21.7 is further amended to: explicitly set CAFO(c,DI) to zero for Intermittent Generating Systems; clarify the source of the maximum capacity values used in the calculations for Non‑Intermittent Generating Systems and Electric Storage Resources; and use the new defined term Outage Quantity.

3.21.7. The Capacity Adjusted Forced Outage Quantity for Dispatch

Interval DI for Separately Certified Component c of a Registered Facility is:

\(a\) where Separately Certified Component c is an Intermittent Generating System:

CAFO(c,DI) = 0

\(b\) otherwise:

\[{CAFO(c,DI) = }{\max\left( 0,\sum\_{o\\ \in \mathbf{FO}}^{}{Q(c,DI,o)} - \left( MaxCap(c,DI) - DefRCOQ(c,DI) \right) \right)}\]

where:

i. o ∈ FO denotes all Forced Outages o for Separately Certified Component c that include Dispatch Interval DI;

ii. Q(c,DI,o) is the Outage Quantity for Outage o of Separately Certified Component c in Dispatch Interval DI as calculated in clause

3.21.6;

iii. MaxCap(c,DI) is:

1. if Separately Certified Component c is a Non‑Intermittent Generating System, the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply to the relevant Network from the Non-Intermittent Generating System under optimal conditions, as specified under Appendix 1(b)(x) or Appendix 1(c)(x) as applicable; or

2. if Separately Certified Component c is an Electric Storage Resource, the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply across the Electric Storage Resource Obligation Duration to the relevant Network from the Electric Storage Resource under optimal conditions, as specified under Appendix 1(b)(xii) or Appendix 1(c)(xii) as applicable; and

iv. DefRCOQ(c,DI) is the Reserve Capacity Obligation Quantity that would apply to Separately Certified Component c in Dispatch Interval DI if the Separately Certified Component was not subject to an Outage or an approved Commissioning Test Plan.

3.21.7A. The Capacity Adjusted Forced Outage Quantity for Trading

Interval t for Separately Certified Component c of a Registered Facility is:

\[CAFO(c,t) = \frac{\sum\_{DI\\ \in \\t}^{}{CAFO(c,DI)}}{6}\]

where:

\(a\) DI ∈ t denotes all Dispatch Intervals DI in Trading Interval t; and

\(b\) CAFO(c,DI) is the Capacity Adjusted Forced Outage Quantity for Separately Certified Component c in Dispatch Interval DI as calculated in clause 3.21.7.

3.21.7B. The Capacity Adjusted Forced Outage Quantity for Trading

Interval t for Registered Facility f is:

\(a\) where no Capacity Credits are assigned to Registered Facility f in Trading Interval t or Registered Facility f is a Non-Scheduled Facility:

CAFO(f,t) = 0

\(b\) otherwise:

\[CAFO(f,t) = \sum\_{c\\\text{∈}\\f}^{}{CAFO(c,t)}\]

where:

i. c ∈ f denotes all Separately Certified Components c of Facility f; and

ii. CAFO(c,t) is the Capacity Adjusted Forced Outage Quantity for Separately Certified Component c in Trading Interval t as calculated in clause 3.21.7A.

3.21.7C. The Capacity Adjusted Forced Outage Quantity for Dispatch

Interval DI for Registered Facility f is:

\(a\) where no Capacity Credits are assigned to Registered Facility f in Dispatch Interval DI or Registered Facility f is a Non-Scheduled Facility:

CAFO(f,DI) = 0

\(b\) otherwise:

\[CAFO(f,DI) = \sum\_{c\\\text{∈}\\f}^{}{CAFO(c,DI)}\]

where:

i. c ∈ f denotes all Separately Certified Components c of Facility f; and

ii. CAFO(c,DI) is the Capacity Adjusted Forced Outage Quantity for Separately Certified Component c in Dispatch Interval DI as calculated in clause 3.21.7.

Explanatory Note Clause 3.21.8 sets out the formula for determining the Capacity Adjusted Planned Outage Quantity for use in other calculations relating to the obligations associated with Reserve Capacity. Clause 3.21.8 is further amended to: explicitly set CAPO(c,DI) to zero for Intermittent Generating Systems; clarify the source of the maximum capacity values used in the calculations for Non‑Intermittent Generating Systems and Electric Storage Resources; and use the new defined term Outage Quantity.

3.21.8. The Capacity Adjusted Planned Outage Quantity for Dispatch

Interval DI for Separately Certified Component c of a Registered Facility is:

\(a\) where Separately Certified Component c is an Intermittent Generating System:

CAPO(c,DI) = 0

\(b\) otherwise:

\[CAPO(c,DI) = max\left( 0,\sum\_{o \in \\\mathbf{PO}}^{}{Q(c,DI,o)} - max\left( 0,MaxCap(c,DI) - DefRCOQ(c,DI) - \sum\_{o\\ \in \\\mathbf{FO}}^{}{Q(c,DI,o)} \right) \right)\\\]

where:

i. o ∈ PO denotes all Planned Outages o for Separately Certified Component c that include Dispatch Interval DI;

ii. o ∈ FO denotes all Forced Outages o for Separately Certified Component c that include Dispatch Interval DI;

iii. Q(c,DI,o) is the Outage Quantity for Outage o of Separately Certified Component c in Dispatch Interval DI as calculated in clause

3.21.6;

iv. MaxCap(c,DI) is:

1. if Separately Certified Component c is a Non‑Intermittent Generating System, the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply to the relevant Network from the Non-Intermittent Generating System under optimal conditions, as specified under Appendix 1(b)(x) or Appendix 1(c)(x) as applicable; or

2. if Separately Certified Component c is an Electric Storage Resource, the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply across the Electric Storage Resource Obligation Duration to the relevant Network from the Electric Storage Resource under optimal conditions, as specified under Appendix 1(b)(xii) or Appendix 1(c)(xii) as applicable; and

v. DefRCOQ(c,DI) is the Reserve Capacity Obligation Quantity that would apply to Separately Certified Component c in Dispatch Interval DI if the Separately Certified Component was not subject to an Outage or an approved Commissioning Test Plan.

Explanatory Note Clause 3.21.8A is amended so the definition of CAOPO(c,t) refers correctly to Capacity Adjusted Planned Outage Quantity.

3.21.8A. The Capacity Adjusted Planned Outage Quantity for Trading

Interval t for Separately Certified Component c of a Registered Facility is:

\[CAPO(c,t) = \frac{\sum\_{DI\\\text{∈}\\t}^{}{CAPO(c,DI)}}{6}\]

where:

\(a\) DI ∈ t denotes all Dispatch Intervals DI in Trading Interval t; and

\(b\) CAPO(c,DI) is the Capacity Adjusted Planned Outage Quantity for Separately Certified Component c in Dispatch Interval DI as calculated in clause 3.21.8.

3.21.8B. The Capacity Adjusted Planned Outage Quantity for Trading

Interval t for Registered Facility f is:

\(a\) where no Capacity Credits are assigned to Registered Facility f in Trading Interval t or Registered Facility f is a Non-Scheduled Facility:

CAPO(f,t) = 0

\(b\) otherwise:

\[CAPO(f,t) = \sum\_{c\\\text{∈}\\f}^{}{CAPO(c,t)}\]

where:

i. c ∈ f denotes all Separately Certified Components c of Facility f; and

ii. CAPO(c,t) is the Capacity Adjusted Planned Outage Quantity for Separately Certified Component c in Trading Interval t as calculated in clause 3.21.8A.

3.21.8C. The Capacity Adjusted Planned Outage Quantity for Dispatch

Interval DI for Registered Facility f is:

\(a\) where no Capacity Credits are assigned to Registered Facility f in Dispatch Interval DI or Registered Facility f is a Non-Scheduled Facility:

CAPO(f,DI) = 0

\(b\) otherwise:

\[CAPO(f,DI) = \sum\_{c\\ \in \\f}^{}{CAPO(c,DI)}\]

where:

i. c ∈ f denotes all Separately Certified Components c of Facility f; and

ii. CAPO(c,DI) is the Capacity Adjusted Planned Outage Quantity for Separately Certified Component c in Dispatch Interval DI as calculated in clause 3.21.8.

Explanatory Note Clause 3.21.9 is no longer required because the definition of DefRCOQ in the capacity adjusted outage quantity calculations incorporates the required temperature-related adjustment.

3.21.9. [Blank]

Explanatory Note Clause 3.21.10 is equivalent to existing clause 3.21.12.

3.21.10. AEMO must document the processes to be followed in reporting

Forced Outages, including the determination of Forced Outage quantities pursuant to clause 4.26.1J, in a WEM Procedure.

Explanatory Note Commissioning tests are required to support the reliable operation of Facilities and equipment, and to confirm the capability of Facilities and equipment to meet certain standards and provide certain services. Required tests can also create risks to power system security and reliability, and so must be planned and coordinated. The existing commissioning test arrangements are cumbersome and don’t allow for flexibility in adjusting tests close to real time. Testing often requires coordination between AEMO and the Network Operator and the current process can be confusing for Market Participants, including understanding the information required and when it is required. Existing section 3.21A is deleted and replaced with a new section ### 3.21A that: clarifies the various types of tests for which AEMO’s approval is required; clarifies the submission timelines for various types of tests, allowing for varying timelines; clarifies the information requirements and approval process; and allows certain flexibility to accommodate real-time testing requirements.

Commissioning Tests

Commissioning Test

Explanatory Note Clause 3.21A.1 is intended to be a civil penalty provision.

3.21A.1. A Market Participant intending to conduct a Commissioning Test

must only conduct the Commissioning Test under a Commissioning Test Plan approved by AEMO.

Explanatory Note Clause 3.21A.2 specifies the deadline for requesting initial approval for a Commissioning Test Plan. The 65 business days represents the longest deadline. There will be shorter deadlines for specific tests which are specified in the WEM Procedure.

3.21A.2. Other than as permitted under clause 3.21A.15A, a Market

Participant requesting approval of a Commissioning Test Plan must submit the Commissioning Test Plan to AEMO for approval at least 7 Business Days before the start of the Commissioning Test Period, and in accordance with any additional timeframes for categories of Commissioning Test Plans specified in the WEM Procedure referred to in clause 3.21A.27.

3.21A.3. A Commissioning Test Plan submitted by a Market Participant

must represent the good faith intention of the Market Participant to conduct the Commissioning Test.

Explanatory Note Clause 3.21A.4 provides the mechanism for a Market Participant to notify affected Rule Participants to allow coordination and assessment to take place.

3.21A.4. Following submission of a Commissioning Test Plan to AEMO for

approval, where the Market Participant that submitted the Commissioning Test Plan reasonably believes that the Commissioning Test Plan will require coordination with a Network Operator, the Market Participant must:

\(a\) promptly notify the relevant Network Operator to inform them of the Commissioning Test Plan submission; and

\(b\) provide details to the relevant Network Operator of the relevant Commissioning Tests requiring coordination.

Explanatory Note Clause 3.21A.5 details when a Commissioning Test Plan is required.

3.21A.5. AEMO must specify which activities must occur under a

Commissioning Test Plan (“Commissioning Tests”) in the WEM Procedure referred to in clause 3.21A.27, which must include activities conducted for any of the following reasons:

\(a\) for a Facility that has undergone significant maintenance as described in the WEM Procedure referred to in clause 3.21A.27(a);

\(b\) to test the control, monitoring or communications systems for a Facility;

\(c\) for a Facility to demonstrate compliance with Registered Generator Performance Standards under Chapter 3A;

\(d\) for a Facility to demonstrate its capability to be accredited, or continue to be accredited, to provide Essential System Services under section 2.34A; or

\(e\) any other reason specified in the WEM Procedure referred to in clause 3.21A.27 that has the potential to impact Power System Security or Power System Reliability.

Explanatory Note Clause 3.21A.6 reflects the existing clause 3.21A.14.

3.21A.6. A Commissioning Test for an Outage Facility may cover periods

in which some or all of the Outage Capabilities of the Outage Facility is subject to a Planned Outage or Forced Outage.

Requirements on information when submitting Commissioning Test Plan

3.21A.7. A Commissioning Test Plan must include:

\(a\) the name of the Facility or equipment to be tested;

\(b\) the purpose of the testing;

\(c\) details of any contracts or agreements relevant to testing activities;

\(d\) details of the proposed Commissioning Test Period, including the start and end Dispatch Intervals, and the preferred dates and times over which the proposed Commissioning Tests will occur;

\(e\) where applicable, any alternative periods within the Commissioning Test Period over which the proposed Commissioning Tests could be conducted;

\(f\) where relevant, details of any conditions that are required to be met prior to, or in order to conduct, the Commissioning Tests;

\(g\) contact details for the relevant contact persons who will be involved in the test activities in respect of the Facility to be tested, where such persons must be contactable by AEMO during all Dispatch Intervals during the Commissioning Test Period, and methods of communication with those persons;

\(h\) any other information specified by AEMO in the WEM Procedure referred to in clause 3.21A.27; and

\(i\) details of the Commissioning Tests.

Explanatory Note Clause 3.21A.8 makes it clear that AEMO is not required to assess Commissioning Test Plans where it does not have sufficient time or information. The clause is similar to the existing clause ### 3.21A.7.

Commissioning Test Plan Approval

3.21A.8. AEMO is not required to assess, and may reject, a Commissioning

Test Plan where it reasonably considers that:

\(a\) inadequate information is provided in the Commissioning Test Plan;

\(b\) there is insufficient time to consider a revision to the Commissioning Test Plan in accordance with the WEM Procedure referred to in clause 3.21A.27; or

\(c\) the initial submission is not in accordance with the submission timeframes specified in clause 3.21A.2.

Explanatory Note Clause 3.21A.9 specifies when AEMO must approve a Commissioning Test Plan. The clause is similar to the existing clause 3.21A.7.

3.21A.9. Subject to clause 3.21A.13, AEMO must approve a Commissioning

Test Plan that is made and submitted in accordance with this section

3.21A, unless, in its opinion, conducting the proposed Commissioning

Tests, including at the proposed time and any alternative times in the Commissioning Test Plan, is likely to adversely affect Power System Security or Power System Reliability.

Explanatory Note Clauses 3.21A.10 to 3.21A.15 allow for AEMO to coordinate with the Market Participant and any relevant Network Operator on the details of the Commissioning Test Plan and included Commissioning Tests, to allow for the Market Participant to revise details of the Commissioning Test Plan and to allow for re-assessment of the Commissioning Test Plan by AEMO. Clause 3.21A.12 is intended to cover the situation where the Commissioning Test Plan as a whole is no longer intended to be conducted.

3.21A.10. Where AEMO considers that the conditions in respect of a

Commissioning Test Plan have changed, or are likely to change, AEMO may re-assess a Commissioning Test Plan that has been approved to determine if, as a result of the changes or likely changes, it should remain approved.

3.21A.11. AEMO may reject a Commissioning Test Plan that has been

approved where AEMO considers that, as a result of the change or likely change to conditions, conducting the Commissioning Test or Commissioning Tests are likely to adversely affect Power System Security or Power System Reliability.

3.21A.12. A Market Participant that has submitted a Commissioning Test

Plan that no longer intends to conduct the Commissioning Test Plan must withdraw the Commissioning Test Plan.

3.21A.13. AEMO may coordinate with a Market Participant that has

submitted a Commissioning Test Plan and any relevant Network Operator in order to determine conditions for conducting the Commissioning Test Plan that AEMO considers are more suitable for maintaining Power System Security and Power System Reliability.

3.21A.14. AEMO may share details of a Commissioning Test Plan and

details of any associated Commissioning Tests with a relevant Network Operator for the purposes of coordinating the Commissioning Test Plan.

3.21A.15. A Market Participant that has submitted a Commissioning Test

Plan may revise the details of the Commissioning Test Plan and, where those revised details include modified Commissioning Tests or a revised Commissioning Test Period, AEMO must re-assess the Commissioning Test Plan and, subject to clause 3.21A.13, determine whether the Commissioning Test Plan is rejected or can remain approved.

3.21A.15A. A Market Participant must submit a revised Commissioning Test

Plan to AEMO for approval in accordance with the timeframes specified in the WEM Procedure referred to in clause 3.21A.27.

Explanatory Note Clause 3.21A.16 is consistent with the requirement for AEMO to approve a Commissioning Test in that if the test is likely to adversely affect Power System Security or Power System Reliability then AEMO may stop, reschedule or cancel the test. It is similar to existing clause ### 3.21A.11(a).

3.21A.16. AEMO may stop, reschedule or cancel a Commissioning Test under

an approved Commissioning Test Plan at any time if it determines that conducting, or continuing to conduct, the Commissioning Test is likely to adversely affect Power System Security or Power System Reliability.

Explanatory Note Clause 3.21A.17 replaces the obligations on AEMO under existing clause 3.21A.9 and clause 3.21.10.

3.21A.17. Where AEMO:

\(a\) rejects a Commissioning Test Plan under clause 3.21A.8;

\(b\) rejects a Commissioning Test Plan under clause 3.21A.9;

\(c\) rejects a Commissioning Test Plan under clause 3.21A.11; or

\(d\) stops, reschedules or cancels a Commissioning Test under clause

3.21A.16,

AEMO must notify the relevant Market Participant as soon as practicable, provide reasons for its decision and use best endeavours to agree an alternative time for the Commissioning Test or Commissioning Test Plan as applicable.

Explanatory Note Clause 3.21A.18 replaces the obligations on AEMO under existing clause 3.21A.8.

3.21A.18. AEMO must not show bias towards a Market Participant in regard

to approving or rejecting a Commissioning Test Plan.

Explanatory Note Clause 3.21A.19 replaces the obligations on AEMO under existing clause 3.21A.9. AEMO's obligation to notify the Market Participant is now at least 2 days prior to the start of the Commissioning Test Period and is intended to cover the situation where a particular Commissioning Test within a Commissioning Test Plan is no longer being conducted.

3.21A.19. AEMO must notify a Market Participant as to whether it has

approved or rejected a Commissioning Test Plan in accordance with the timelines specified in the WEM Procedure referred to in clause 3.21A.27, where a Commissioning Test Plan has yet to commence and this must be no later than 48 hours before the start of the proposed Commissioning Test Period.

Explanatory Note Clause 3.21A.20 consolidates existing clauses 3.21A.6 and ### 3.21A.11(b). This clause is intended to be a Category C civil penalty provision.

3.21A.20. Where a Market Participant no longer intends to conduct a

Commissioning Test under a Commissioning Test Plan that has been:

\(a\) submitted to AEMO for approval; or

\(b\) approved by AEMO,

the Market Participant must notify AEMO as soon as practicable and revise or withdraw the Commissioning Test Plan as required.

Explanatory Note Clause 3.21A.21 replaces the obligation on AEMO in existing clause ### 3.21A.11(b). It also requires AEMO to update the report AEMO must provide under clause 3.21A.22.

3.21A.21. On receipt of notification from a Market Participant under

clause 3.21A.20, AEMO must:

\(a\) reassess a revised Commissioning Test Plan; and

\(b\) update the relevant report referred to in clause 3.21A.22 to reflect the changed status of the Commissioning Test Plan.

Requirement to publish Commissioning Test Plan

Explanatory Note Clause 3.21A.22 introduces a new obligation on AEMO to publish approved Commissioning Test Plans in order to increase transparency in the WEM.

3.21A.22 AEMO must publish on the WEM Website and keep up to date

information on each Commissioning Test Plan that AEMO approves, including:

\(a\) the status of the Commissioning Test Plan, including whether the Commissioning Test Plan has been withdrawn or has subsequently been rejected; and

\(b\) summary details of the Commissioning Test Plans as described in the WEM Procedure in clause 3.21A.27, which must include:

i. the name of the Facility;

ii. the Commissioning Test Period; and

iii. the purpose of the testing.

Explanatory Note Clause 3.21A.23 specifies the deadlines for publication and updates to the Commissioning Test Plan report by AEMO.

3.21A.23. The information published under clause 3.21A.22 must be

published or updated, as applicable, as soon as practicable after, as relevant:

\(a\) the Commissioning Test Plan was approved by AEMO;

\(b\) the Commissioning Test Plan was rejected or withdrawn; or

\(c\) where revisions have been made to the Commissioning Test Plan, the most recent revision of the Commissioning Test Plan was approved.

Requirements for undertaking a Commissioning Test

Explanatory Note Clause 3.21A.24 is intended to be a civil penalty provision.

3.21A.24. In conducting a Commissioning Test a Market Participant must

conform to the approved Commissioning Test Plan.

Explanatory Note Clause 3.21A.25 replaces the existing clause 3.21A.13. Clause 3.21A.25 is intended to be a civil penalty provision.

3.21A.25. If a Market Participant intending to conduct or conducting a

Commissioning Test cannot conform to the Commissioning Test Plan approved by AEMO for the Commissioning Test, the Market Participant must notify AEMO as soon as practicable.

Explanatory Note Clause 3.21A.26 provides for the potential for additional requirements for Commissioning Tests for electrical plant as such tests may impact the system operating state.

3.21A.26. Where specified in the WEM Procedure referred to in clause

3.21A.27, Market Participants must conduct Commissioning Tests in

accordance with the requirements specified in that WEM Procedure.

Explanatory Note To ensure there is flexibility in the Commissioning Test Plan regime, clause 3.21A.27 sets out a broad head of power for AEMO to create a WEM Procedure setting out the details of submitting and approving Commissioning Test Plans.

3.21A.27. AEMO must document the following in a WEM Procedure:

\(a\) a description of the activities that AEMO consider would constitute a Commissioning Test and therefore require submission of a Commissioning Test Plan under this section 3.21A, including a categorisation of the type of Commissioning Test or Commissioning Test Plan that AEMO reasonably considers would allow a Market Participant to determine the timeframes and processes applicable to a Commissioning Test Plan or Commissioning Test;

\(b\) any additional information required to be contained in a Commissioning Test Plan;

\(c\) the timelines for submitting and revising different categories of Commissioning Test Plans to AEMO, where the timelines must be no longer than 65 days;

\(d\) the criteria AEMO will use to assess whether to approve or reject a Commissioning Test Plan and to stop, reschedule or cancel a Commissioning Test in a Commissioning Test Plan;

\(e\) the process for notifying:

i. whether the Commissioning Test Plan has been rejected under clause

3.21A.8;

ii. whether the Commissioning Test Plan has been approved under clause

3.21A.9 and if the Commissioning Test Plan is approved, the minimum

information that must be provided to the Market Participant which must include the approved dates and times where alternatives are specified in the submitted Commissioning Test Plan; or

iii. whether a Commissioning Test within the Commissioning Test Plan has been stopped, rescheduled or cancelled under clause 3.21A.16;

\(f\) the process for rescheduling a Commissioning Test within the Commissioning Test Period, including the process for Market Participants and AEMO to agree to a new date and time for the Commissioning Test;

\(g\) the process and timeframes for adjustments to an approved Commissioning Test Plan, including to the Commissioning Test Period;

\(h\) the summary details of a Commissioning Test Plan that AEMO will publish on the WEM Website; and

\(i\) the requirements for undertaking a Commissioning Test, including, without limitation, any actions to be taken by a Market Participant before, during and on completion of the Commissioning Test.

Outage Data Publication

Explanatory Note New replacement section 3.22 replaces existing clauses 7.13.1D to 7.13.1G. Clause 3.22.1 is amended to clarify that AEMO must publish Outage Plan information to the WEM Website following both submissions and revisions in its Outage computer system, and to specify the mandatory information that AEMO must publish.

3.22. Outage Data Publication

3.22.1. AEMO must as soon as practicable after AEMO receives an Outage

Plan submission, or a change is made to an existing Outage Plan for an Equipment List Facility in its Outage computer system, publish the following details on the WEM Website:

\(a\) whether the submission or change is for Opportunistic Maintenance or not;

\(b\) the status of the Outage;

\(c\) the description of the Outage;

\(d\) the Outage First Submission Date, Outage Commencement Interval and Outage Completion Interval;

\(e\) the equipment impacted by the Outage, including, where relevant, the Facility name and Facility Technology Types for that Facility impacted by the Outage;

\(f\) summary details of the Contingency Plan;

\(g\) the Outage Return To Service Commencement Interval and Outage Return To Service Completion Interval for each Outage Return To Service Period listed in the Outage Plan;

\(h\) whether the Outage has been subject to an Outage Recall Direction;

\(i\) whether the Outage has been identified as at risk of rejection by AEMO;

\(j\) the date and time when:

i. the Outage Plan was received by AEMO or was subsequently revised by the Rule Participant responsible for the Outage Plan; or

ii. any amendment to the Outage status occurred;

\(k\) each Outage Capability impacted by the Outage and any associated Remaining Available Capacity quantities for the Outage Facility or the Facility Technology Types of the Outage Facility; and

\(l\) any other information specified in the WEM Procedure referred to in clause 3.18.4.

Explanatory Note Clause 3.22.1A has been added to cater for when AEMO rejects or recalls an Outage in operational timeframes. In these circumstances, updates will typically occur in the Outage computer system some time after the fact, and so this obligation requires AEMO to publish, to the best of its ability, the actual time at which the direction to reject or recall the Outage was given.

3.22.1A. Where AEMO rejects an Outage Plan or issues an Outage Recall

Direction outside of its Outage computer system, AEMO must record its best estimate of when that decision was made and publish the estimated date and time of the decision as soon as practicable on the WEM Website.

Explanatory Note Clause 3.22.2 is amended to specify that AEMO is not required to publish Forced Outages of Self-Scheduling Outage Facilities. Clause 3.22.2 is amended to clarify that AEMO must publish Forced Outage information to the WEM Website following both submissions and revisions in its Outage computer system, and to specify the mandatory information that AEMO must publish.

3.22.2. AEMO must, as soon as practicable after AEMO receives a

notification of a Forced Outage for an Equipment List Facility or a revision is made to an existing Forced Outage for an Equipment List Facility in its Outage computer system, publish on the WEM Website:

\(a\) the Outage Facility affected by the Outage and, where relevant, each Facility Technology Type of the Outage Facility affected by the Outage;

\(b\) the cause of the Outage;

\(c\) the date and time the Outage commenced or is expected to commence;

\(d\) the date and time the Outage ended or is expected to end;

\(e\) the date and time when:

i. AEMO was first notified of the Outage under clause 3.21.2(a);

ii. the Outage was first reported in AEMO’s Outage computer system; or

iii. any amendments to the Outage information were received by AEMO;

\(f\) each Outage Capability impacted by the Outage and any associated Remaining Available Capacity quantities for the Outage Facility or the Facility Technology Types of the Outage Facility; and

\(g\) any other information specified in the WEM Procedure referred to in clause 3.18.4.

Explanatory Note New clause 3.22.3 replaces clause 10.5.1(zI) in the current WEM Rules.

3.22.3. AEMO must prepare and publish on the WEM Website the Refund

Exempt Planned Outage Count for each Separately Certified Component of a Scheduled Facility or Semi-Scheduled Facility for each of the 1000 Trading Days up to and including the most recent Trading Day which AEMO has settled under Chapter 9.

3.23. [Blank]

Distributed Energy Resources Register

Explanatory Note Section 3.24 sets out the regime for AEMO to establish, maintain and publish a Distributed Energy Resources Register.

3.24. Distributed Energy Resources Register

3.24.1. On and from a day no earlier than the day that is six months

after the day AEMO develops the WEM Procedure referred to in clause

3.24.8, AEMO must establish, maintain and update a DER Register.

3.24.2. The DER Register:

\(a\) must include DER Generation Information reported to AEMO by Network Operators in accordance with clause 3.24.5; and

\(b\) may include information of a type similar to the information referred to in clause 3.24.2(a) provided to AEMO by any person in connection with the performance of AEMO's functions under the WEM Rules, Regulations or the Electricity Industry Act.

3.24.3. By no later than 30 September 2020, a Network Operator must

provide AEMO with all DER Generation Information that it holds in accordance with the WEM Procedure referred to in clause 3.24.8, or as otherwise agreed with AEMO.

3.24.4. AEMO will be taken to satisfy the requirement to establish and

maintain a DER Register in clause 3.24.1 if it stores DER Register Information in one or more databases.

3.24.5. If a Network Operator receives DER Generation Information

relating to connection points on its Network it must, in accordance with the WEM Procedure referred to in clause 3.24.8, provide that information to AEMO.

3.24.6. AEMO may use DER Register Information for the purpose of the

exercise of its statutory functions under the Electricity Industry Act, Regulations, and these WEM Rules.

3.24.7. AEMO must publish details on the extent to which, in general

terms, DER Register Information has informed AEMO's development or use of load forecasts, or the performance of its functions referred to in clause 3.24.6 and AEMO may, for this purpose, include such details as part of existing WEM Procedures or other publications produced by AEMO, or by publishing details on the WEM Website.

3.24.8. By no later than 1 July 2020, AEMO must develop and implement a

WEM Procedure that specifies:

\(a\) details of the DER Generation Information that Network Operators must provide to AEMO under clauses 3.24.3 and 3.24.5, including any minimum size of Small Generating Units or Storage Works for which a Network Operator is required to provide DER Generation Information;

\(b\) when Network Operators must provide and update DER Generation Information;

\(c\) how DER Generation Information should be provided to AEMO by Network Operators, including, for example, the format in which the information must be provided;

\(d\) how the information in the DER Register is stored by AEMO;

\(e\) the manner and form in which AEMO will publish details, in accordance with clause 3.24.7, on the extent to which DER Register Information has informed its load forecasts or its function for ensuring that the SWIS operates in a secure and reliable manner;

\(f\) details of how AEMO will provide Network Operators with access to DER Register Information under clause 3.24.14; and

\(g\) the contents, form and timing of the DER Register Report to be published by AEMO in accordance with clause 3.24.12 and how the DER Register Information to be included in that report will be aggregated.

3.24.9. In developing and amending the WEM Procedure referred to in

clause 3.24.8, AEMO must:

\(a\) have regard to the reasonable costs of efficient compliance by Network Operators with the procedure compared to the likely benefits from the use of DER Generation Information as contemplated under this section 3.24;

\(b\) consider any risk of unauthorised use or disclosure of confidential information or personal information that may arise from including information in the DER Register compared to the likely benefits of including that information in the register; and

\(c\) subject to clause 3.24.10, comply with the Procedure Change Process.

3.24.10. AEMO is not required to comply with the Procedure Change

Process when making the first WEM Procedure referred to in clause 3.24.8 or when making minor or administrative amendments to that WEM Procedure.

3.24.11. The WEM Procedure referred to in clause 3.24.8 must include a

minimum period of 3 months between the date of publication and the date when the procedure commences other than when the procedure is amended under paragraph 3.24.10, in which case the procedure may commence on the date of publication.

3.24.12. AEMO must prepare and publish on the WEM Website a report of

aggregated DER Register Information in accordance with the WEM Procedure referred to in clause 3.24.8.

3.24.13. The information in the DER Register Report must be aggregated

such that it does not:

\(a\) directly or indirectly disclose confidential information; or

\(b\) result in a breach of applicable privacy legislation.

3.24.14. AEMO must provide or give access to DER Register Information to

each Network Operator in relation to that Network Operator's Network in accordance with the WEM Procedure referred to in clause 3.24.8.

3.24.15. Nothing in this section 3.24:

\(a\) requires AEMO to make available DER Register Information where the collection, use or disclosure of that information by AEMO would breach applicable privacy legislation; or

\(b\) precludes AEMO from disclosing confidential information in the circumstances in which disclosure of confidential information is permitted under the WEM Rules, Regulations or the Electricity Industry Act.

3.24.16. No less than seven days before the day the DER Register

commences, AEMO must publish notice on the WEM Website of the day the DER Register is to commence.