4 Reserve Capacity Rules

Explanatory Note

The amendments to section 4.1 including amendments to reflect the following changes to the Reserve Capacity Cycle timeline:

Expressions of Interest open on 15 January (currently 31 January) and close on 1 March (currently 15 May);
Applications for Certified Reserve Capacity open on 14 April (currently 1 May) and close on 24 June (currently 1 July);
Publication of the ESOO by 17 June (no change);
AEMO notifies applicants of their Certified Reserve Capacity by 12 August (currently 19 August);
Notification of bilateral trades and provision of Reserve Capacity Security by 25 August (currently 2 September); and
AEMO assigns Capacity Credits on 30 September and publishes NAQ related information.

The Reserve Capacity Cycle

4.1. The Reserve Capacity Cycle

4.1.1. This section 4.1 sets out the timetable by which the key events

described in this Chapter in respect of each Reserve Capacity Cycle must occur. The events described below comprise a single Reserve Capacity Cycle, except where otherwise indicated. The Reserve Capacity Cycle will be repeated for each Capacity Year.

4.1.1A. Section 4.28C takes precedence over this section 4.1 and events

described in section 4.28C are not required to comply with the timetable in this section 4.1 except where specified in section 4.28C.

4.1.1B. The description of an event in this section 4.1 is for the

purpose of identifying where it fits into the Reserve Capacity Cycle, and does not affect the interpretation of the relevant provisions of this Chapter 4.

4.1.1C. AEMO may modify or extend a date or time set under this section

4.1 and section 4.4B. If AEMO extends a date or time under this clause

4.1.1C, then it must publish notice of the modified or extended date or

time on the WEM Website and the modified or extended date or time takes effect for the purposes of these WEM Rules.

4.1.2. [Blank]

4.1.3. Each Reserve Capacity Cycle:

$a$ occurs over four successive calendar years (Year 1 to Year 4);

$b$ is identified by reference to the calendar year in which Year 1 of the Reserve Capacity Cycle falls; and

$c$ relates to the Reserve Capacity required for the period between the start of the first Trading Interval on 1 October of Year 3 and the end of the last Trading Interval on 1 October of Year 4 of the Reserve Capacity Cycle.

Explanatory Note

Several changes are being made to the Reserve Capacity Cycle timeframes and processes to accommodate the introduction of the NAQ framework. The changes primarily relate to the bringing forward of several key dates to accommodate the preparation of RCM Limit Advice and Preliminary Constraint Equations to be used in the NAQ assignment process, and to provide AEMO with more time to complete some of the activities towards the end of Year 1 of the Reserve Capacity Cycle, including, for example, determining Network Access Quantities for Facilities.

Clause 4.1.4 is amended to bring forward the date AEMO is required to advertise for Expressions of Interest for the Reserve Capacity Cycle from 31 January to 15 January.

Clause 4.1.4 is further amended to remove the redundant reference to the first Reserve Capacity Cycle.

4.1.4. In respect of each Reserve Capacity Cycle, AEMO must advertise a

Request for Expressions of Interest in accordance with clause 4.2.4 by 5:00 PM on or before 15 January of Year 1 of the Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.5 is amended to bring forward the closing date of submissions in response to AEMO’s Request for Expressions of Interest from 1 May to 1 March of the Reserve Capacity Cycle.

Clause 4.1.5 is further amended to remove the redundant reference to the first Reserve Capacity Cycle.

4.1.5. AEMO must allow potential Reserve Capacity providers to respond

to the Request for Expressions of Interest in accordance with section

4.2 until 5:00 PM on the first Business Day falling on or following 1

March of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.6 is amended to bring forward the date AEMO is required to publish a summary of the responses to its Request for Expressions of Interest from 15 May to 1 April.

Clause 4.1.6 is further amended to remove the redundant reference to the first Reserve Capacity Cycle.

4.1.6. AEMO must publish a summary of the responses to its Request for

Expressions of Interest in accordance with clause 4.2.7 by 5:00 PM on the first Business Day falling on or following 1 April of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.7 is amended to bring forward the opening date for applications for Certified Reserve Capacity from 1 May to 14 April.

Clause 4.1.7 is further amended to remove the redundant reference to the first Reserve Capacity Cycle.

4.1.7. AEMO must accept lodgement of applications for certification of

Reserve Capacity for a Reserve Capacity Cycle in accordance with clause

4.9.1 from 9:00 AM on the first Business Day falling on or following 14

April of Year 1 of a Reserve Capacity Cycle.

4.1.8. AEMO must publish a Statement of Opportunities Report produced in

accordance with the Long Term PASA process described in clause 4.5.11 by 5:00 PM on the first Business Day falling on or following 17 June of Year 1 of a Reserve Capacity Cycle.

4.1.9. [Blank]

4.1.10. AEMO must publish on the WEM Website the Reserve Capacity

Information Pack in accordance with clause 4.7.2 by 5:00 PM on the first Business Day falling on or following 17 June of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.11 is amended to bring forward the closing date for applications for Certified Reserve Capacity from 1 July to 24 June.

Clause 4.1.11 is further amended to remove the redundant reference to the first Reserve Capacity Cycle.

4.1.11. AEMO must cease to accept lodgement of applications for

certification of Reserve Capacity for a Reserve Capacity Cycle in accordance with clause 4.9.1 from 5:00 PM on the last Business Day falling on or before 24 June of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.12 is amended to bring forward the date by which AEMO is to notify applicants of the Certified Reserve Capacity assigned to their facility from 19 August to 12 August and to make it clear that the clause it also applies to applicants for Early Certified Reserve Capacity.

Clause 4.1.12 is further amended to remove the redundant reference to the first Reserve Capacity Cycle.

4.1.12. AEMO must notify each applicant for certification of Reserve

Capacity, including applicants for Early Certified Reserve Capacity under clause 4.28C.7, of the Certified Reserve Capacity to be assigned by 5:00 PM on the last Business Day on or before 12 August of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.13 is amended to bring forward the date by which Reserve Capacity Security is required to be provided to AEMO from 2 September to 25 August, and to remove redundant references to previous Reserve Capacity Cycles.

4.1.13. Each Market Participant must provide to AEMO any Reserve

Capacity Security required in accordance with clause 4.13.1 and any DSM Reserve Capacity Security required in accordance with clause 4.13A.1 not later than 5:00 PM on the last Business Day falling on or before 25 August of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.14 is amended to bring forward the date by which bilateral trade declarations are required to be provided to AEMO from 2 September to 25 August, as a consequence of the deletion of the Reserve Capacity Auction, and to remove redundant references to previous Reserve Capacity Cycles.

4.1.14. Each Market Participant holding Certified Reserve Capacity for a

Reserve Capacity Cycle must provide to AEMO notification in accordance with clause 4.14.1 as to how its Certified Reserve Capacity will be dealt with not later than 5:00 PM on the last Business Day falling on or before 25 August of Year 1 of a Reserve Capacity Cycle.

4.1.15. By 5:00 PM on the first Business Day following the notification

deadline specified in clause 4.1.14, AEMO must confirm to each Market Participant in accordance with clause 4.14.9 the amount of Certified Reserve Capacity that can be traded bilaterally from its Facilities.

4.1.15A. AEMO must publish the Certified Reserve Capacity for each

Facility in accordance with clause 4.9.9A by 5:00 PM on the first Business Day following the confirmation deadline specified in clause

4.1.15. 4.1.16. [Blank]

Explanatory Note

Clause 4.1.16A is amended to require AEMO to confirm to Market Participants the Network Access Quantity determined for each of their facilities, to assign Capacity Credits to facilities and determine whether the Reserve Capacity Requirement has been met by 30 September.

4.1.16A. By 5:00 PM on the last Business Day falling on or before 30

September of Year 1 of a Reserve Capacity Cycle, AEMO must:

$a$ assign Capacity Credits in accordance with clause 4.20.5A(a);

$b$ determine in accordance with clause 4.20.5A(aA) whether the Reserve Capacity Requirement has been met or exceeded with the Capacity Credits assigned for Year 3 of the Reserve Capacity Cycle:

i. to Facilities to which section 4.13 applies, for which no Reserve Capacity Security was required to be provided under section 4.13; or

ii. to Demand Side Programmes determined by AEMO to be in Commercial Operation;

$c$ notify each Market Participant of the Network Access Quantity determined for each of its Facilities in accordance with clause 4.15.11; and

$d$ publish the information required to be published under clause

4.15.16. 4.1.17. [Blank]

4.1.18. [Blank]

4.1.18A. AEMO must publish the summary of information described in

clause 4.20.5AA by the date and time specified in clause 4.1.16A.

4.1.19. The Economic Regulation Authority must commence a review of the

Benchmark Reserve Capacity Price as required by clause 4.16.3 with the objective of completing the review, including consideration of public submissions in relation to that review, so as to allow a reasonable time for the Economic Regulation Authority to determine any proposed change in value and for that value to be implemented prior to the date and time specified in clause 4.1.4 that relates to the following Reserve Capacity Cycle.

4.1.20. [Blank]

Explanatory Note

Clause 4.1.21 is amended to extend the date for applications by Market Participants for the amount of Reserve Capacity Security or DSM Reserve Capacity Security to be recalculated from 24 September to 1 October.

4.1.21. A Market Participant may apply to AEMO:

$a$ under clause 4.13.2A for a recalculation of the amount of Reserve Capacity Security required to be held by AEMO for a Facility in accordance with clause 4.13.2(b); or

$b$ under clause 4.13A.8 for a recalculation of the amount of DSM Reserve Capacity Security required to be held by AEMO for a Demand Side Programme in accordance with clauses 4.13A.1 or 4.13A.4, as applicable,

after 5:00 PM on the last Business Day falling on or before 1 October of Year 1 of a Reserve Capacity Cycle.

Explanatory Note

Clause 4.1.21A is deleted as a consequence of the Reserve Capacity Auction being deleted.

New clause 4.20.16 requires a Market Participant to nominate the number of Capacity Credits to be associated with each component of its Facility (not exceeding the level of Certified Reserve Capacity for each such component) where the Capacity Credits assigned to the Facility is less than the Facility’s total Certified Reserve Capacity for each component. New replacement clause 4.1.21A sets out the time and date by when the nomination must occur.

4.1.21A. By 5:00 PM on the last Business Day falling on or before 30

October of Year 1 of a Reserve Capacity Cycle, each relevant Market Participant must notify AEMO of the number of Capacity Credits that are to be associated with each component of their Facility for the Capacity Year in accordance with clause 4.20.16.

4.1.21B. If required under clause 4.20.8, AEMO must issue a Notice of

Intention to Cancel Capacity Credits by 5:00 PM on the last Business Day falling on or before 15 August of Year 3 of a Reserve Capacity Cycle, where the notice relates to the Capacity Year that commences on 1 October of Year 3 of that Reserve Capacity Cycle.

4.1.22. Within five Business Days after the notification deadline

specified in clause 4.1.21A, AEMO must:

$a$ set the number of Capacity Credits to be associated with each component of a Facility in accordance with clause 4.20.17; and

$b$ publish the information in clause 4.1.22(a) on the WEM Website.

4.1.23. Each Market Participant must provide to AEMO the information

described in clause 4.28.8 by 5:00 PM on the last Business Day falling on or before 20 August of Year 3 of a Reserve Capacity Cycle.

Explanatory Note

Amendments to clauses 4.1.23A and 4.1.23B for weekly settlement.

However, these amendments were inadvertently commenced on 1 October 2021 instead of new maket start. Therefore, the Tranche 5 Amendments reinstates the previous wording and the new required amendments that will apply from new market start will be re-commenced in due course (via the Tranche 5 Amendments).

4.1.23A. For each Hot Season, AEMO must determine and publish the 12

Peak SWIS Trading Intervals within five Business Days after the Interval Meter Deadline for the Trading Week containing the last Trading Day of the last Trading Month in the relevant Hot Season. For the avoidance of doubt, AEMO must not revise the 12 Peak SWIS Trading Intervals after their publication.

4.1.23B. For each Trading Month, AEMO must determine and publish the 4

Peak SWIS Trading Intervals within five Business Days after the Interval Meter Deadline for the Trading Week containing the last Trading Day of the relevant Trading Month. For the avoidance of doubt, AEMO must not revise the 4 Peak SWIS Trading Intervals after their publication.

Explanatory Note

Clauses 4.1.23C and 4.1.24 are amended to clarify that the Indicative Individual Reserve Capacity Requirements and Individual Reserve Capacity Requirements for a Market Participant are only disclosed to that Market Participant.

4.1.23C. For each Trading Month, AEMO must determine and provide to each

Market Participant that Market Participant’s Indicative Individual Reserve Capacity Requirement in accordance with clause 4.28.6 by 5:00 PM on the Business Day that is 10 Business Days prior to the start of the relevant Trading Month.

4.1.24. For each Trading Month, AEMO must determine and provide to each

Market Participant that Market Participant’s Individual Reserve Capacity Requirement in accordance with clause 4.28.7 by 5:00 PM on the Settlement Statement Date for the Trading Week containing the first Trading Day in the relevant Trading Month.

4.1.25. [Blank]

Explanatory Note

Clause 4.1.26 is amended as a consequence of the Reserve Capacity Auction being deleted and to remove redundant references to previous Reserve Capacity Cycles.

In particular, clauses 4.1.26(d)(ii)(1), 4.1.26(d)(ii)(2), ### 4.1.26(e)(iii)(3) and 4.1.26(e)(ii)(4) refer to the date in clause ### 4.1.12 (i.e. 12 August of Year 1 of the Reserve Capacity Cycle) instead of the scheduled date of the Reserve Capacity Auction in clause ### 4.1.18(a).

4.1.26. Reserve Capacity Obligations apply:

$a$ [Blank]

$b$ [Blank]

$c$ [Blank]

$d$ for the 2018 Reserve Capacity Cycle:

i. where AEMO has determined in accordance with clause 4.20.5A(aA) that the Reserve Capacity Requirement has been met or exceeded with the Capacity Credits assigned for Year 3 of the Reserve Capacity Cycle for which no Reserve Capacity Security was required to be provided under section 4.13, from the Trading Day commencing on 1 October of Year 3 of the Reserve Capacity Cycle; and

ii. where AEMO has determined in accordance with clause 4.20.5A(aA) that the Reserve Capacity Requirement has not been met with the Capacity Credits assigned for Year 3 of the Reserve Capacity Cycle for which no Reserve Capacity Security was required to be provided under section

4.13:

1. from the Trading Day commencing on 1 October of Year 3 of the Reserve Capacity Cycle, for Facilities that were commissioned as at 17 September 2018 or for Facilities which have provided Capacity Credits in one or both of the two previous Reserve Capacity Cycles;

2. from the Trading Day commencing on 1 June of Year 3 of the Reserve Capacity Cycle, for Facilities commissioned between 17 September 2018 and 1 June of Year 3 of the Reserve Capacity Cycle;

2A. from the Trading Day commencing on the scheduled date of commissioning, as specified in accordance with clause 4.10.1(c)(iii)(7), or as revised in accordance with clause 4.27.11A, for Facilities commissioned between 1 June of Year 3 of the Reserve Capacity Cycle and 1 October of Year 3 of the Reserve Capacity Cycle; or

3. from the Trading Day commencing on 1 October of Year 3 of the Reserve Capacity Cycle, for new Energy Producing Systems undertaking Commissioning Tests after 1 October of Year 3 of the Reserve Capacity Cycle; and

$e$ from the 2019 Reserve Capacity Cycle:

i. from the Trading Day commencing 1 October of Year 3 of the Reserve Capacity Cycle, where AEMO has determined in accordance with clause

4.20.5A(aA) that the Reserve Capacity Requirement has been met or

exceeded with the Capacity Credits assigned for Year 3 of the Reserve Capacity Cycle:

1. to Facilities to which section 4.13 applies, for which no Reserve Capacity Security was required to be provided under section 4.13; or

2. to Demand Side Programmes determined by AEMO to be in Commercial Operation, and

ii. where AEMO has determined in accordance with clause 4.20.5A(aA) that the Reserve Capacity Requirement has not been met with the Capacity Credits assigned for Year 3 of the Reserve Capacity Cycle:

1. to Facilities to which section 4.13 applies, for which no Reserve Capacity Security was required to be provided under section 4.13; or

2. to Demand Side Programmes determined by AEMO to be in Commercial Operation,

from the Trading Day commencing:

3. on 1 October of Year 3 of the Reserve Capacity Cycle, for Facilities that were commissioned as at 16 September 2019 or for Facilities which have provided Capacity Credits in one or both of the two previous Reserve Capacity Cycles;

4. on 1 June of Year 3 of the Reserve Capacity Cycle, for Facilities commissioned between 16 September 2019 and 1 June of Year 3 of the Reserve Capacity Cycle;

5. on the scheduled date of commissioning, as specified in accordance with clause 4.10.1(c)(iii)(7), or as revised in accordance with clause

4.27.11A, for Facilities commissioned between 1 June of Year 3 of the

Reserve Capacity Cycle and 1 October of Year 3 of the Reserve Capacity Cycle; or

6. on 1 October of Year 3 of the Reserve Capacity Cycle, for new Energy Producing Systems undertaking Commissioning Tests after 1 October of Year 3 of the Reserve Capacity Cycle.

4.1.27. [Blank]

4.1.28. [Blank]

4.1.29. The Reserve Capacity Price and each Facility Monthly Reserve

Capacity Price for a Reserve Capacity Cycle apply from the start of the Trading Day commencing on 1 October of Year 3 of the Reserve Capacity Cycle to the end of the Trading Day ending on 1 October of Year 4 of the Reserve Capacity Cycle.

4.1.30. The Reserve Capacity Obligations for a Facility arising through

holding Capacity Credits for a Reserve Capacity Cycle cease to apply from:

$a$ subject to clause 4.1.30(b), the completion of the Trading Day ending on 1 October of Year 4 of the Reserve Capacity Cycle; and

$b$ the completion of the Trading Day ending on the scheduled date of decommissioning, as specified in accordance with clause 4.10.1(d), for Facilities decommissioned between 1 August of Year 4 of the Reserve Capacity Cycle and 1 October of Year 4 of the Reserve Capacity Cycle.

Explanatory Note

Clauses 4.1.31 to 4.1.33 are deleted as a consequence of clauses ### 4.1.34 to 4.1.38 being deleted.

Clauses 4.1.34, 4.1.35, 4.1.36, 4.1.37 and 4.1.38 are deleted as the Constrained Access Certification Review referred to in those clauses is now redundant.

Explanatory Note

Network Access Quantity

AEMO is required to determine an initial Network Access Quantity for each Facility (other than a GIA Facility) that was assigned Capacity Credits for the 2021 Reserve Capacity Cycle.

The initial Network Access Quantity for a Facility will be the lower of:

the Capacity Credits held for the Facility for the 2021 Reserve Capacity Cycle; and
the Certified Reserve Capacity that AEMO has assigned to the Facility for the 2022 Reserve Capacity Cycle.

The purpose of the initial Network Access Quantity is to give existing holders of Capacity Credits priority over new entrants (which includes any upgrades to existing Facilities) for the purposes of determining Network Access Quantities for Facilities for the 2022 Reserve Capacity Cycle.

The initial Network Access Quantity determined for a Facility does not set the Network Access Quantity to be determined for the Facility in any subsequent Reserve Capacity Cycle.

CC Uplift Quantity

The WEM Rules include a supplementary mechanism to ‘uplift’ the allocation assigned to a Facility in the 2021 Reserve Capacity Cycle. The ‘Capacity Credit Uplift’ only applies to non GIA Facilities. The uplift represents the difference between an initial NAQ value determined for a Facility (in accordance with Step 3(a) of Appendix 3) and the Capacity Credits assigned to the Facility in the 2021 Reserve Capacity Cycle, but is only provided up to the amount of Certified Reserve Capacity assigned to the Facility in the Reserve Capacity Cycle that NAQ is first assigned.

Capacity Credit Uplift Quantities are treated the same as Capacity Credits for the purpose of the WEM Rules except that they will not be taken into account when AEMO determines whether the Reserve Capacity Requirement has been met.

The sum of a Facility’s NAQ and its Capacity Credit Uplift must not exceed the Facility’s Certified Reserve Capacity. If the sum of the NAQ and the Capacity Credit Uplift exceeds the Certified Reserve Capacity for the Facility, then the amount of the Capacity Credit Uplift will be reduced.

4.1A. Initial Network Access Quantities for the 2022 Reserve Capacity

Cycle and Capacity Credit Uplift

4.1A.1. For the 2022 Reserve Capacity Cycle, AEMO must determine an

Initial Network Access Quantity in accordance with clause 4.1A.2 for each Facility, other than a GIA Facility, that:

$a$ was assigned Capacity Credits for the 2021 Reserve Capacity Cycle; and

$b$ has been assigned Certified Reserve Capacity for the 2022 Reserve Capacity Cycle that is intended to be traded bilaterally under clause

4.14.1(c).

Explanatory Note:

Clause 4.1A.2(a) is amended to reflect that a Non-Scheduled Facility comprising a Non-Intermittent Generation System or Electric Storage Resource may also be assessed under the methodology described in clause ### 4.11.2(b).

4.1A.2. The Initial Network Access Quantity to be determined by AEMO

under clause 4.1A.1 for a Facility is a quantity, in MW, equal to:

$a$ where the Facility, or a component of the Facility, has been assigned Certified Reserve Capacity using the methodology described in clause 4.11.2(b), the Certified Reserve Capacity assigned to the Facility for the 2022 Reserve Capacity Cycle that is intended to be traded bilaterally in accordance with 4.14.1(c); and

$b$ for each other Facility, the lesser of:

i. the Capacity Credits assigned to the Facility for the 2021 Reserve Capacity Cycle; and

ii. the Certified Reserve Capacity assigned to the Facility for the 2022 Reserve Capacity Cycle that is intended to be traded bilaterally in accordance with 4.14.1(c).

4.1A.3. Each Initial Network Access Quantity is to be expressed to a

precision of 0.001 MW.

4.1A.4. Subject to clause 4.1A.6, for the 2022 Reserve Capacity Cycle,

where a Facility, other than a GIA Facility, is assigned a Network Access Quantity in accordance with section 4.15 that is less than the Initial Network Access Quantity determined by AEMO under clause 4.1A.1, AEMO must record the difference as the CC Uplift Quantity for the Facility (“CC Uplift Quantity”).

4.1A.5. Where, in respect of a Reserve Capacity Cycle:

$a$ a CC Uplift Quantity has been determined for a Facility; and

$b$ the sum of the Network Access Quantity determined for the Facility in accordance with section 4.15 and the CC Uplift Quantity determined for the Facility exceeds the Certified Reserve Capacity for the Facility for the Reserve Capacity Cycle,

then AEMO must reduce the CC Uplift Quantity so that the Network Access Quantity and the revised CC Uplift Quantity equals the Certified Reserve Capacity for the Facility for the Reserve Capacity Cycle.

4.1A.6. At any time the maximum amount of CC Uplift Quantity is to be

the sum recorded by AEMO under clause 4.1A.4, as may be reduced by AEMO under clause 4.1A.5. To avoid doubt, a CC Uplift Quantity, as may be reduced under clause 4.1A.5, may not be increased in any subsequent Reserve Capacity Cycle.

4.1A.7. Any CC Uplift Quantity is deemed to be a Capacity Credit in the

same quantities and subject to the same obligations including testing requirements, refunds, payment arrangements and all other provisions applicable to Capacity Credits (including the determination of the Reserve Capacity Price) under these WEM Rules save that for the purposes of determining whether the Reserve Capacity Requirement has been met or exceeded in accordance with clause 4.20.5A(aA), AEMO must disregard any CC Uplift Quantity.

4.1A.8. AEMO must publish the CC Uplift Quantity for each applicable

Facility.

The Reserve Capacity Expression of Interest

4.2. The Reserve Capacity Expression of Interest Process

4.2.1. The purpose of the Reserve Capacity Expression of Interest is for

a person to notify AEMO of the amount of new Energy Producing System and Demand Side Management capacity they intend to make available as Reserve Capacity in the Capacity Year to which the Expression of Interest relates. To avoid doubt, a Market Participant or other person, as applicable, must submit an Expression of Interest as a condition of being eligible to seek certification of Reserve Capacity under section

4.8 for any new capacity, which includes an upgrade of a Facility, in

the Reserve Capacity Cycle to which the Expression of Interest relates.

4.2.2. AEMO must prepare a Request for Expressions of Interest which

includes the information described in clause 4.3.1.

4.2.3. The Request for Expression of Interest is to be made available:

$a$ on the WEM Website; and

$b$ to any person on application to AEMO.

4.2.4. By the date and time specified in clause 4.1.4, AEMO must have

advertised the Request for Expression of Interest, including how to obtain the Request for Expression of Interest:

$a$ on the WEM Website; and

$b$ in local and national media which, in the opinion of AEMO, is likely to be seen by potential suppliers of Reserve Capacity.

4.2.5. At its discretion, AEMO may continue to advertise and promote the

Request for Expression of Interest until the deadline for submissions of Expression of Interest specified in clause 4.2.6.

4.2.6. Expressions of Interest must be provided to AEMO by the time and

date specified in clause 4.1.5 and must contain the information described in clause 4.4.1.

Explanatory Note

Clause 4.2.7(c)(i) is amended to refer to storage as a new Facility Technology Type.

Consequential amendments to clause 4.2.7(c) reflect that Small Aggregation has been moved from being a Facility Technology Type to a Facility under clause 2.29.1B.

Clause 4.2.7 is also amended to exclude EOI Facility Variants from the information that AEMO must publish in relation to Reserve Capacity Expressions of Interest. This change effectively removes duplicated information which may otherwise provide a misleading indication of the additional Reserve Capacity potentially available under clause ### 4.2.7(b).

4.2.7. By the date and time specified in clause 4.1.6, AEMO must publish

the following information:

$a$ the total number of Expressions of Interest received;

(aA) the number of Expressions of Interest received, excluding Expressions of Interest for EOI Facility Variants that have not been nominated under clause 4.4.2;

$b$ based on the Expressions of Interest referred to in clause

4.2.7(aA), the additional Reserve Capacity potentially available,

categorised as:

i. capacity associated with Facilities that are committed; and

ii. capacity associated with Facilities that are not yet committed, where this capacity is to be further categorised between new Facilities for which:

1. an offer by the relevant Network Operator to enter into an Arrangement for Access (“Access Proposal”) has been made and all necessary Environmental Approvals granted;

2. applications for both Access Proposals and Environmental Approvals have been made and one or both are being processed;

3. no Access Proposal has been applied for or some or all Environmental Approvals have not been applied for;

$c$ based on the Expressions of Interest, the additional Reserve Capacity potentially available by:

i. Facility Technology Types, including:

1. Intermittent Generating Systems;

2. Non-Intermittent Generating Systems; and

3. Electric Storage Resources;

ii. Demand Side Programmes; and

iii Small Aggregation.

(cA) if the Facility is an Energy Producing System, the additional Reserve Capacity potentially available from each technology;

(cB) whether more than one technology is proposed for the Facility or location;

$d$ based on the Expressions of Interest, the additional Reserve Capacity potentially available categorised based on fuel type and back-up fuel options;

$e$ AEMO’s estimate of the existing capacity eligible to be assigned Certified Reserve Capacity in the SWIS; and

$f$ the preliminary Reserve Capacity Requirement for the Reserve Capacity Cycle to which the Expression of Interest relates that was included in the Request for Expression of Interest.

Explanatory Note

Clauses 4.3.1(c)(iii), 4.3.1(i)(v), 4.3.1(i)(vi), 4.3.1(i)(vii) and ### 4.3.1(i)(viii) are deleted as a consequence of the Reserve Capacity Auction being deleted.

Clause 4.3.1(i)(ix) is amended to improving the formatting of the clause.

Clause 4.3.1(d) was amended to reflect that from the 2019 Reserve Capacity Cycle, Market Participants with Demand Side Programmes will be able to bilaterally trade Capacity Credits assigned to their Demand Side Programmes.

Clause 4.3.1(m) was added to require the information in any notices received by AEMO in accordance with section 4.4A (Notification of Facility Ceasing Operation) in a Request for Expression of Interest.

4.3. Information to be Included in a Request for Expression of Interest

4.3.1. A Request for Expression of Interest for a Reserve Capacity Cycle

must include the following information:

$a$ a request for a response by interested parties not later than the relevant time specified in clause 4.1.5;

$b$ the preliminary Reserve Capacity Requirement for the Reserve Capacity Cycle determined in accordance with section 4.6;

$c$ for each of the three previous Reserve Capacity Cycles (if applicable):

i. the Reserve Capacity Requirement determined in accordance with clause 4.6.1;

ii. the Availability Curve referred to in clause 4.5.10(e) applicable to that Reserve Capacity Cycle;

iii. [Blank]

iv. the number of Capacity Credits acquired by AEMO;

v. the Benchmark Reserve Capacity Price;

vi. the Reserve Capacity Price;

vii. each Facility Monthly Reserve Capacity Price that applied to a Facility; and

viii. the aggregate quantity of MW of Capacity Credits assigned to Facilities at each of the prices referred to in clauses 4.3.1(c)(vi) and

4.3.1(c)(vii);

$d$ the number of Capacity Credits which AEMO expects to be traded bilaterally in accordance with clause 4.14.1(c);

$e$ the amount of capacity expected to be required from new Facilities, where this figure is based on the difference between the value as determined in accordance with clause 4.6.3 and the latest information available to AEMO as to the aggregate available capacity for the SWIS during the period to which the Reserve Capacity Requirement relates;

$f$ the Benchmark Reserve Capacity Price applicable to the relevant Reserve Capacity Cycle;

$g$ a brief summary of the eligibility requirements for Reserve Capacity to be certified under section 4.11;

$h$ information on how to obtain an electronic version of the WEM Rules;

$i$ the following information on timetables and processing times for the Reserve Capacity Cycle:

i. the date and time from which the lodgement of applications for certification of Reserve Capacity will be allowed;

ii. the date and time by which applications for certification of Reserve Capacity must be lodged;

iii. the date and time that applicants for Certified Reserve Capacity will be notified of the Certified Reserve Capacity assigned;

iv. the date and time by which a Market Participant which holds Certified Reserve Capacity must notify AEMO in accordance with clause 4.14.1 as to how its Reserve Capacity will be dealt with; and

v. the date and time by which AEMO will publish the Preliminary RCM Constraint Equations;

$j$ the information required to be included in an Expression of Interest and the format in which that information is to be presented;

$k$ the closing date and time for submission of Expressions of Interest;

$l$ who to contact with questions and responses to the Expression of Interest, including that person’s contact details; and

$m$ the information specified in clause 4.4A.2 in respect of any Facility where the expected closure date of the Facility has not yet occurred.

Explanatory Note

Clause 4.4.1(b) is amended to refer to two new Facility types – storage and Small Aggregation (a facility which is aggregated across single or multiple connection points comprising Distributed Energy Resources).

Clause 4.4.1(bA) is amended to specify further information required to assist with AEMO's determination of an the Indicative Facility Class for a Facility.

Clause 4.4.1(d)(vi) is added to require an Expression of Interest to specify whether the Facility will be nominated to be classified as a Network Augmentation Funding Facility.

Exposure Draft 1 proposed changes to clause 4.4.1(d) to require the inclusion of an Access Proposal/Offer application reference number and date of application in an Expression of Interest where available.

Further changes to section 4.4 to require proponents to signify where multiple Expressions of Interest under the Reserve Capacity Expression of Interest process relate to the same intended Facility, referred to as EOI Facility Variants.

The proponent must also nominate one EOI Facility Variant for AEMO to formulate Preliminary RCM Constraint Equations and publish the required information under clause 4.2.7.

The changes allow AEMO to manage its workload in relation to Preliminary RCM Constraint Equations without limiting the number of variations a proponent may wish to submit as an Expression of Interest, noting that the submission of an Expression of Interest is a pre-condition for the application of certification of Reserve Capacity under clause 4.8.2.

4.4. Information to be Included in an Expression of Interest

4.4.1. An Expression of Interest for a Reserve Capacity Cycle must

include the following information:

$a$ the identity of the person proposing to provide Reserve Capacity and contact details;

$b$ for each Facility covered by the Expression of Interest, its name and location and whether it contains:

i. an Intermittent Generating System;

ii. a Non-Intermittent Generating System;

iii. an Electric Storage Resource;

iv. a Demand Side Programme; and

v. a Small Aggregation;

(bA) if the Facility contains an Energy Producing System:

i. the expected nameplate capacity for each technology; and

ii. the maximum Reserve Capacity anticipated to be available from each technology;

(bB) whether more than one technology is proposed for the Facility or location;

(bC) whether the Expression of Interest is for an EOI Facility Variant and, if so, whether the Expression of Interest is nominated under clause

4.4.2;

$c$ the maximum Reserve Capacity anticipated to be available from each Facility;

$d$ for each Facility:

i. the expected earliest date that the Facility will be able to be fully operational;

ii. the status of any applications for Access Proposals in respect of that Facility;

iii. the status of any applications for Environmental Approvals required in respect of that Facility;

iv. details of the type and quantity of fuel expected to be available to that Facility;

v. the hours during a typical week when the Facility will not be available to be dispatched due to staffing restrictions or other factors;

vi. whether the Facility is expected to be nominated to be classified as a Network Augmentation Funding Facility;

vii. whether the Facility has entered into or is expected to enter into an NCESS Contract;

viii. if an application under clause 4.4.1(d)(ii) has been submitted, the application reference number provided by the Network Operator; and

ix. if an application under clause 4.4.1(d)(ii) has been submitted, the date the application was submitted to the Network Operator; and

$e$ any other information specified by AEMO in the Request for Expression of Interest under clause 4.3.1(j).

4.4.2. A person who submits two or more Expressions of Interest for EOI

Facility Variants must nominate one Expression of Interest to be used by AEMO for the purposes of clauses 4.2.7(b) and 4.4B.4.

4.4.3. If:

$a$ a person submits two or more Expressions of Interest and does not specify that any of the Expressions of Interest is for an EOI Facility Variant under clause 4.4.1(bC); and

$b$ AEMO reasonably considers that two or more of the Expressions of Interest are for EOI Facility Variants,

AEMO may (after using reasonable endeavours to consult with the person) select one Expression of Interest to use for the purposes of clauses

4.2.7(b) and 4.4B.4. The Expression of Interest selected by AEMO is

deemed to be the Expression of Interest nominated by the person under clause 4.4.2.

Explanatory Note

Clause 4.4A.1 is amended to require a notice that a Facility is to cease operation permanently to apply to all Facilities except Non-Scheduled Facilities.

Clause 4.4A.1 is intended to be a Category C civil penalty provision.

The Electricity Industry (Wholesale Electricity Market) Regulations 2004 will be amended to include the notice requirement as a Category C civil penalty provision and for the civil penalty to be paid into the Consolidated Account. Consequently, there are no WEM Rules which deal with the distribution of the civil penalty (c/f regulation 37(b) Electricity Industry (Wholesale Electricity Market) Regulations 2004).

As clause 4.4A.1 is to be a Category C civil penalty provision, clause 4.4A.5 makes provision for some limited exceptions.

The phrase 'unexpected catastrophic event' is not defined because its meaning will need to be considered in the context of the 'event' at the relevant time and will be a matter to be considered during any investigation for non-compliance with the notification obligations.

For the same reasons, the phrase "no longer commercially viable" is also not defined.

Clause 4.4A.1 is amended to clarify the Facilities the notice requirement applies to.

4.4A. Notification of Facility Ceasing Operation

4.4A.1. Where a Facility, that is not a Demand Side Programme with less

than 10 MW of Capacity Credits assigned to the Demand Side Programme at the time the notice is given or required to be given under this clause

4.4A.1 or a Non-Scheduled Facility, is to cease operation permanently,

the Market Participant to whom that Facility is registered must:

$a$ notify AEMO of the expected closure date of the Facility in accordance with this section 4.4A; and

$b$ subject to clause 4.4A.5, specify an expected closure date of not less than three years from the date the notice is given to AEMO.

Explanatory Note

Clause 4.4A.2(f) requires AEMO to publish the NAQ determined for a Facility where the Market Participant for that Facility has given AEMO a notice under clause 4.4A.1 of its intent that the Facility is to cease operation permanently.

Where a Market Participant subsequently withdraws a notice under clause 4.4A.6, under clause 4.15.12, the NAQ for the Facility will not be reinstated, and the Facility will be treated as a “new” facility in the priority order in Appendix 3.

4.4A.2. AEMO must within five Business Days after receiving a notice

under clause 4.4A.1, publish the following information on the WEM Website:

$a$ the name of the Market Participant that provided the notice;

$b$ the name of the Facility specified in the notice;

(bA) the Transmission Node Identifier for the Facility;

(bB) the geographical location for the Facility;

$c$ the Capacity Credits, in MW, assigned to the Facility at the time of the notice and for any subsequent Reserve Capacity Cycle;

$d$ the Standing Data nameplate capacity of the Facility, expressed in MW; and

$e$ the expected closure date of the Facility; and

$f$ the Network Access Quantity assigned to the Facility at the time of the notice and for any subsequent Reserve Capacity Cycle.

4.4A.3. A Market Participant must, as soon as practicable, notify AEMO

of any changes to the expected closure date of a Facility by amending the notice given under clause 4.4A.1.

4.4A.4. AEMO must within five Business Days after receiving notification

under clause 4.4A.3, publish the revised expected closure date of the Facility on the WEM Website.

4.4A.5. A notice under clause 4.4A.1, as may be amended in accordance

with clause 4.4A.3, may specify an expected closure date of less than three years where:

$a$ the Market Participant becomes insolvent within the meaning of clause 9.19.2;

$b$ the Facility specified in the notice has suffered an unexpected catastrophic event; or

$c$ the Market Participant forms the view, in good faith, that the Facility specified in the notice is now no longer commercially viable due to reasons beyond its control that were not reasonably foreseeable,

and as a result the Facility is to cease operation permanently.

4.4A.6. A Market Participant may, by notice in writing to AEMO, withdraw

a notice given under clause 4.4A.1 if the withdrawal is made in good faith.

4.4A.7. AEMO must within five Business Days after receiving a notice

under clause 4.4A.6, publish notification of the withdrawal of a notice under clause 4.4A.1 on the WEM Website.

Explanatory Note

Section 4.4B requires Network Operators to provide information with respect to the thermal capabilities of its Network (at 41 degrees) which AEMO will use to develop Constraint Equations for use in the Network Access Quantity Model. The Network Access Model is to be developed by AEMO to determine a Network Access Quantity (where applicable) for a Facility. A Network Access Quantity is critical to determining the Capacity Credits to be assigned to a Facility for a Reserve Capacity Cycle. See section 4.15 for further information.

RCM Limit Advice (including supporting information) and RCM Constraint Equations will be published to enable Market Participants to form a view on the potential Network Access Quantity to be determined for their Facility before the window for applications for certification of Reserve Capacity closes.

4.4B. RCM Limit Advice and RCM Constraint Equations

4.4B.1. Each Network Operator must provide RCM Limit Advice to AEMO in

respect to its Network in accordance with this section 4.4B and section 2.27A.

Explanatory Note

Clause 4.4B.2 requires AEMO to provide details to the relevant Network Operator of any Facilities for which an Expression of Interest to provide Reserve Capacity in the Reserve Capacity Cycle has been received by AEMO, and Facilities which are intended to cease operation permanently by 1 October of Year 3 of that Reserve Capacity Cycle.

4.4B.2. By 5:00 PM on the last Business Day falling on or before 8 March

in Year 1 of a Reserve Capacity Cycle, AEMO must provide each Network Operator, in respect of its Network for the Reserve Capacity Cycle:

$a$ details of each Facility specified in an Expression of Interest submitted under clause 4.2.6 for the Reserve Capacity Cycle, including the information in clause 4.4.1;

$b$ details of each Facility for which AEMO has received a notice under clause 4.4A.1 where the intention is for the Facility to cease operation permanently by 1 October of Year 3 of the Reserve Capacity Cycle;

$c$ details of each Facility for which AEMO has received an Early Certified Reserve Capacity application and whether the Facility has nominated to be classified as a Network Augmentation Funding Facility; and

$d$ details of any NCESS Contracts procured by AEMO which are expected to be in service by 1 October of Year 3 of the Reserve Capacity Cycle, and is expected to impact information provided by a Network Operator under clause 4.4B.5.

4.4B.3. By 5:00 PM on the last Business Day falling on or before 15

April in Year 1 of a Reserve Capacity Cycle, each Network Operator must, in respect of its Network, reasonably estimate the configuration at peak demand, and associated Thermal Network Limits of its Network:

$a$ by:

i. assuming an ambient temperature of 41 degrees Celsius;

ii. taking into account:

1. all new Network augmentations that will be in-service, including separate Thermal Network Limits for Facilities nominated to be classified as Network Augmentation Funding Facilities;

2. all transmission Network assets scheduled to be retired; and

3. all NCESS Contracts expected to be in-service,

as at 1 October of Year 3 of the Reserve Capacity Cycle;

iii. including the connection of new Facilities notified by AEMO under clauses 4.4B.2(a) and 4.4B.2(c); and

iv. including the impact of any Facilities notified by AEMO under clause 4.4B.2(b); and

$b$ in accordance with the WEM Procedure referred to in clause 2.27A.11(b)(i).

4.4B.4. Subject to clause 4.4B.4A, AEMO must formulate Preliminary RCM

Constraint Equations and RCM Constraint Equations in accordance with this section 4.4B. In formulating Preliminary RCM Constraint Equations and RCM Constraint Equations, AEMO must:

$a$ use RCM Limit Advice and Limit Advice available in relation to Non-Thermal Network Limits to develop Preliminary RCM Constraint Equations and RCM Constraint Equations; and

$b$ where a Network Operator has not been able to provide Non-Thermal Network Limits for Facilities that are not yet in-service or Facilities subject to an NCESS Contract in accordance with clause 2.27A.6 at the time specified in clause 4.4B.5, use Non-Thermal Network Limits which, in its reasonable opinion, most closely represent the expected Non-Thermal Network Limit for the Facility.

4.4B.4A. AEMO is not required to formulate Preliminary RCM Constraint

Equations for a Facility that is an EOI Facility Variant unless the Expression of Interest is:

$a$ nominated under clause 4.4.2; or

$b$ deemed to be nominated in accordance with clause 4.4.3.

4.4B.5. By 5:00 PM on the last Business Day falling on or before 15

April in Year 1 of a Reserve Capacity Cycle, each Network Operator must provide the following information in respect of its Network to AEMO:

$a$ the estimated proportion of the peak demand of its Network as at 1 October of Year 3 of the Reserve Capacity Cycle determined under clause 4.4B.3 at each Electrical Location on its Network;

$b$ its estimate of the Thermal Network Limits of its Network taking into account all new Network augmentations that will be in-service by the relevant Capacity Year specified in applications for Early Certified Reserve Capacity under section 4.28C, including separate Thermal Network Limits for Facilities nominated to be classified as Network Augmentation Funding Facilities;

$c$ the Electrical Location and identity of any new load, or increase of an existing load, equal to or greater than 10 MW that the relevant Network Operator expects to be connected to its Network and in-service by 1 October of Year 3 of the Reserve Capacity Cycle;

$d$ in the form of RCM Limit Advice, its estimate of the configuration and associated Thermal Network Limits of its Network as at 1 October of Year 3 of the current Reserve Capacity Cycle determined under clause

4.4B.3; and

$e$ an explanation for any changes to the RCM Limit Advice provided to AEMO for the Reserve Capacity Cycle from the RCM Limit Advice provided to AEMO for a previous Reserve Capacity Cycle.

Explanatory Note

Clause 4.4B.6 requires AEMO to publish RCM Limit Advice (which includes RCM Limit Advice Inputs) and RCM Constraint Equations.

The information is required to be published in the Constraints Library, which forms part of the Congestion Information Resources on the WEM Website. The definition of “Constraints Library” in the Chapter 11 glossary is amended accordingly.

4.4B.6. By 5:00 PM on the last Business Day falling on or before 20 May

in Year 1 of the Reserve Capacity Cycle, AEMO must publish the following information in the Constraints Library for the Reserve Capacity Cycle:

$a$ the information provided by each Network Operator under clause

4.4B.5; and

$b$ the Preliminary RCM Constraint Equations.

The Long Term SWIS Capacity Requirements

Explanatory Note

Section 4.5 is amended by the October 2021 RCM Pricing Amendments that commence on 1 October 2021 as a result of tranche based dispatch payments for Demand Side Programmes ceasing from the 2019 Reserve Capacity Cycle (i.e. from the 2021 Capacity Year). However, as this companion version of the WEM Rules does not show deletions, please refer to the October 2021 RCM Pricing Amendments to see the changes to section ### 4.5.

4.5. Long Term Projected Assessment of System Adequacy

4.5.1. The Long Term PASA must be performed annually by AEMO and must

address each of the years in the Long Term PASA Study Horizon.

4.5.2. The Long Term PASA must take into account:

$a$ demand growth scenarios, including peak and annual energy requirements;

$b$ expected Demand Side Management capabilities;

$c$ generation capacity expected to be available, including details of any Early Certified Reserve Capacity, seasonal capacities, Essential System Service capabilities, long duration outages, and production profiles for Intermittent Generating Systems;

$d$ expected transmission network capabilities allowing for expansion plans, losses and constraints;

$e$ the capacity described in clause 4.5.2A; and

$f$ expected Electric Storage Resource capabilities.

4.5.2A. AEMO must determine an estimate of the Reserve Capacity required

to cover the forecast cumulative needs of Intermittent Loads such that:

$a$ this Reserve Capacity estimate is in addition to the Reserve Capacity required to satisfy the Planning Criterion in the situation where there were no Intermittent Loads; and

$b$ this Reserve Capacity estimate must be set by AEMO to equal the sum over all expected Intermittent Loads of their forecast maximum possible Intermittent Load levels multiplied by:

i. the ratio of:

1. the Reserve Capacity Target for the relevant Capacity Year as described in clause 4.5.10(b)(i); and

2. the expected peak demand for the relevant Capacity Year as described in clause 4.5.10(b)(ii);

ii. minus one.

4.5.3. AEMO must notify Rule Participants of the information that it

requires from them in the areas described in clause 4.5.2, in respect of each year of the Long Term PASA Study Horizon, no later than 1 April of Year 1 of the relevant Reserve Capacity Cycle.

4.5.3A. The information requested by AEMO under clause 4.5.3 must

include a request for Market Participants to provide to AEMO, for Intermittent Loads and Loads that are expected to be operating as Intermittent Loads during the second Capacity Year commencing during the Long Term PASA Study Horizon, the amount of capacity required to serve the Load in the event of a failure of on-site generation where this amount of capacity cannot exceed the greater of:

$a$ the maximum allowed level of Intermittent Load specified in Standing Data for that Intermittent Load at the time of providing the data; and

$b$ the Contractual Maximum Demand associated with that Intermittent Load to apply during the Capacity Year to which the nomination relates. The Market Participant must provide evidence to AEMO of this Contractual Maximum Demand level unless AEMO has previously been provided with that evidence.

4.5.4. Rule Participants must provide the data requested by AEMO in

accordance with clause 4.5.3 within 15 Business Days from the date of that request.

4.5.5. AEMO may request from persons who are not Rule Participants

information in the areas described in clause 4.5.2 in respect of each year of the Long Term PASA Study Horizon.

4.5.6. AEMO must review the information provided to it in accordance

with clause 4.5.4 and as a result of a request under clause 4.5.5, and where necessary, seek clarifications.

4.5.7. AEMO must treat all information provided to it in accordance with

clauses 4.5.4, 4.5.5 and 4.5.6 as confidential except where the provider has granted permission for its release or as otherwise provided under these WEM Rules. However, AEMO may release any such information as part of an unidentifiable component of an aggregate number in a Statement of Opportunities Report.

4.5.8. Where information provided to AEMO in accordance with clauses

4.5.4, 4.5.5 and 4.5.6 is not adequate or is insufficient for the

purpose for which it is required, AEMO may make its own estimate and use that estimate in place of information provided in accordance with clauses 4.5.4, 4.5.5 and 4.5.6.

Explanatory Note

Clause 4.5.9(a)(ii) is amended to replace the maximum capacity of the largest generating unit with the largest contingency expected at the time of forecast peak demand in the determination of the reserve margin. The change is a recommendation of the 2021/2022 Review of the Reserve Capacity Mechanism.

Clause 4.5.9(b) is amended to require AEMO to take into account the maximum transfer capability of the Network to meet demand.

4.5.9. The Planning Criterion to be used by AEMO in undertaking a Long

Term PASA study is that there should be sufficient available capacity in each Capacity Year during the Long Term PASA Study Horizon to:

$a$ meet the forecast peak demand (including transmission losses and allowing for Intermittent Loads) supplied through the SWIS plus a reserve margin equal to the greater of:

i. 7.6% of the forecast peak demand (including transmission losses and allowing for Intermittent Loads); and

ii. the size, in MW, of the largest contingency relating to loss of supply (related to any Facility, including a Network) expected at the time of forecast peak demand (including transmission losses and allowing for Intermittent Loads),

while maintaining the SWIS frequency in accordance with the Normal Operating Frequency Band and the Normal Operating Frequency Excursion Band. The forecast peak demand should be calculated to a probability level that the forecast would not be expected to be exceeded in more than one year out of ten; and

$b$ limit expected energy shortfalls to 0.002% of annual energy consumption (including transmission losses and taking into account transmission network capabilities including constraints).

4.5.10. AEMO must use the information assembled to:

$a$ assess the extent to which the anticipated installed capacity of the Energy Producing Systems and Demand Side Management capacity is capable of satisfying the Planning Criterion, identifying any capacity shortfalls in each Relevant Year in the Long Term PASA Study Horizon, for each of the following scenarios:

i. median peak demand assuming low demand growth;

ii. one in ten year peak demand assuming low demand growth;

iii. median peak demand assuming expected demand growth;

iv. one in ten year peak demand assuming expected demand growth;

v. median peak demand assuming high demand growth;

vi. one in ten year peak demand assuming high demand growth,

where the low, expected, and high demand growth cases reflect demand changes stemming from different levels of economic growth, with these being temperature adjusted to produce the one in ten year peak demand cases.

$b$ forecast the Reserve Capacity Target and corresponding expected peak demand for each Capacity Year during the Long Term PASA Study Horizon, where:

i. the Reserve Capacity Target for a Capacity Year is the capacity required to meet the Planning Criterion in that year under the scenario described in clause 4.5.10(a)(iv); and

ii. the expected peak demand in that year is the peak demand under the scenario described in clause 4.5.10(a)(iv);

$c$ identify and assess any potential capacity shortfalls isolated to a sub-region of the SWIS resulting from expected restrictions on transmission capability or other factors;

$d$ identify any potential transmission, generation, storage or demand side capacity augmentation options to alleviate capacity shortfalls identified in clauses 4.5.10(a) and 4.5.10(c); and

$e$ develop a two dimensional duration curve of the forecast minimum capacity requirements over the Capacity Year (“Availability Curve”) for each of the second and third Capacity Years of the Long Term PASA Study Horizon. The forecast minimum capacity requirement for each Trading Interval in the Capacity Year must be determined as the sum of:

i. the forecast demand (including transmission losses and allowing for Intermittent Loads) for that Trading Interval under the scenario described in clause 4.5.10(a)(iv); and

ii. the difference between the Reserve Capacity Target for the Capacity Year and the maximum of the quantities determined under clause

4.5.10(e)(i) for the Trading Intervals in the Capacity Year.

4.5.11. AEMO must publish the Statement of Opportunities Report for a

Reserve Capacity Cycle by the date specified in clause 4.1.8.

4.5.12. For the second and third Capacity Years of the Long Term PASA

Study Horizon, AEMO must determine the following information:

$a$ [Blank]

$b$ the minimum capacity required to be provided by Availability Class 1 capacity if Power System Security and Power System Reliability is to be maintained. This minimum capacity is to be set at a level such that if:

i all Availability Class 2 capacity were activated during the Capacity Year so as to minimise the peak demand during that Capacity Year; and

ii the Planning Criterion and the criteria for evaluating Outage Plans set out in clause 3.18E.8 were to be applied to the load scenario defined by clause 4.5.12(b)(i), then

it would be possible to satisfy the Planning Criterion and the Outage Evaluation Criteria, as applied in clause 4.5.12(b)(ii), using, to the extent that the capacity is anticipated to provide Certified Reserve Capacity, the anticipated installed Availability Class 1 capacity and, to the extent that further Availability Class 1 capacity would be required, an appropriate mix of Availability Class 1 capacity to make up that shortfall; and

$c$ the capacity associated with Availability Class 2, where this is equal to the Reserve Capacity Target for the Capacity Year less the minimum capacity required to be provided by Availability Class 1 capacity under clause 4.5.12(b).

Explanatory Note

Clauses 4.5.13(eA) and 4.5.13(eB) are added to require AEMO to include in the ESOO information regarding certain aspects of network congestion to assist smaller Market Participants to understand the effect of such network congestion.

4.5.13. The Statement of Opportunities Report must include:

$a$ the input information assembled by AEMO in performing the Long Term PASA study including, for each Capacity Year of the Long Term PASA Study Horizon:

i. the demand growth scenarios used;

ii. the capacities of each energy producing Registered Facility;

iii. the generation capacities of each committed energy producing project;

iv. the generation capacities of each probable energy producing project;

v. the Demand Side Management capability and availability;

vA. the amount of Reserve Capacity forecast to be required to serve the aggregate Intermittent Load;

vi. the assumptions about transmission network capacity, losses and network and security constraints that impact on study results; and

vii. a summary of the methodology used in determining the values and assumptions specified in (i) to (vi), including methodological changes relative to previous Statement of Opportunities Reports;

$b$ the Reserve Capacity Target for each Capacity Year of the Long Term PASA Study Horizon;

$c$ the amount by which the installed Energy Producing System capacity plus the Demand Side Management available exceeds or falls short of the Reserve Capacity Target for each Capacity Year and each demand growth scenario considered in the study;

$d$ the extent to which localised supply restrictions will exist while satisfying the Reserve Capacity Target for each Capacity Year and each demand growth scenario considered in the study;

$e$ a statement of potential Energy Producing System, demand side and transmission options that would alleviate capacity shortfalls relative to the Reserve Capacity Target and to capacity requirements in Electrical Locations of the SWIS;

(eA) information used by AEMO to apportion peak demand under clause

4.5.10(a)(iv) across Electrical Locations reflecting information

provided under clause 4.4B.5;

(eB) for each Capacity Year of the Long Term PASA Horizon:

i. any planned changes (other than augmentations covered by clause

4.5.13(eB)(ii)) that are expected to impact Network limits or

constraints;

ii. any planned augmentations to the SWIS, including augmentations to be paid for by an applicant seeking access, or increase to an Arrangement for Access, to the transmission system that is publicly available information and of which AEMO is aware;

iii. any Network limitations identified in the Network Access Quantity Model outputs in the immediately preceding Reserve Capacity Cycle; and

iv. details of each Facility for which AEMO has received a notice under clause 4.4A.1 where the intention is for the Facility to cease operation permanently;

$f$ the Availability Curve for the second and third Capacity Years of the Long Term PASA Study Horizon; and

$g$ the quantities determined under clause 4.5.12 for the second and third Capacity Years of the Long Term PASA Study Horizon.

4.5.14. AEMO must document the procedure it follows in conducting the

Long Term PASA in a WEM Procedure.

4.5.15. From time to time, and at least once in every five year period

starting from 1 July 2021 the Coordinator, with the assistance of AEMO, must conduct a review of the Planning Criterion and the process in the WEM Procedure specified in clause 4.5.14 by which AEMO forecasts SWIS peak demand. This review must include:

$a$ a review of the technical analysis; and

$b$ a cost-benefit study on the effects on stakeholders of a variety of levels of generation adequacy.

4.5.16. In conducting a review under clause 4.5.15, the Coordinator must

invite submissions on the performance of the Planning Criterion and the process by which AEMO forecasts SWIS peak demand from Rule Participants, and must specify a reasonable time by which submissions must be lodged. The Coordinator must take into account in the review any submissions received within the time specified, and may take into account any late submission.

4.5.17. The Coordinator must make available a draft of the report

described in clause 4.5.18 to Rule Participants for comment and invite submissions on the draft report. The Coordinator must specify a reasonable time by which submissions must be lodged, and must take into account any submissions received within the time specified, and may take into account any late submission.

4.5.18. After concluding the review described in clause 4.5.15, the

Coordinator must publish a final report containing:

$a$ issues identified by the Coordinator;

$b$ assumptions made by the Coordinator in undertaking the review;

$c$ submissions received by the Coordinator from Rule Participants in accordance with clause 4.5.16;

$d$ the Coordinator’s responses to the issues raised in those submissions;

$e$ the results of the technical and cost-benefit studies;

$f$ the submissions on the draft report received by the Coordinator from Rule Participants in accordance with clause 4.5.17;

$g$ the Coordinator’s responses to the issues raised in those submissions; and

$h$ any recommended changes to the Planning Criterion.

4.5.19. Where the Coordinator finds that a change to the process by

which AEMO forecasts SWIS peak demand would be beneficial in light of the Wholesale Market Objectives, it must:

$a$ make a Rule Change Proposal to implement the change; and/or

$b$ make a Procedure Change Proposal to implement the change.

4.5.20. If the Coordinator contracts with a third party to conduct any

analysis required under this section 4.5, then:

$a$ the Coordinator must ensure that the third party is familiar with the methodology employed in conducting the analysis required under this section 4.5 in previous years; and

$b$ the Coordinator must approve any variations in the process to be used by that third party and variations may only be accepted if not inconsistent with the requirements specified in the WEM Rules or a WEM Procedure.

4.5A. Whole of System Plan

4.5A.1. The Coordinator must prepare and publish on the Coordinator’s

Website a Whole of System Plan in accordance with this section 4.5A.

4.5A.2. The Coordinator must prepare and publish a Whole of System Plan

by 30 September 2025 and then at least once every five years thereafter.

4.5A.3. If, after a Whole of System Plan is published, new information

becomes available that, in the Coordinator’s opinion, may materially affect one or more of the outcomes specified in the current Whole of System Plan, the Coordinator may update that Whole of System Plan.

4.5A.4. A Whole of System Plan remains in effect until:

$a$ a subsequent Whole of System Plan is published pursuant to clause

4.5A.2; or

$b$ in respect to a part of the Whole of System Plan, an update to that part of the Whole of System Plan is published in accordance with clause 4.5A.3.

4.5A.5. The purposes of a Whole of System Plan are to:

$a$ plan for the efficient development of the SWIS to meet the power system needs of the SWIS including with respect to Power System Security and Power System Reliability for a planning horizon of at least 20 years;

$b$ assist in the transition to a lower-emissions power system by guiding the efficient integration of renewable generation and identifying opportunities for new technologies, such as energy storage;

$c$ identify requirements for network investment and inform the regulatory test for network projects;

$d$ inform industry’s decisions regarding efficient power system investment opportunities in the SWIS; and

$e$ inform policy makers on the future needs of the power system.

4.5A.6. A Whole of System Plan must:

$a$ identify options for the development of the SWIS to maintain Power System Security and Power System Reliability at the lowest sustainable cost across demand growth scenarios, including peak and annual energy requirements;

$b$ test alternative scenarios through the use of modelling and sensitivities, including the assessment of the impact on the power system and its various components across the different scenarios;

$c$ identify investment options that would minimise costs to consumers; and

$d$ test alternative network investment options and identify optimal network investment options.

4.5A.7. In preparing a Whole of System Plan, the Coordinator must

develop an approach to:

$a$ determining the scenarios to be modelled;

$b$ the modelling methodology to apply; and

$c$ the method for selecting optimal network investment options.

4.5A.8. The Coordinator must publish on the Coordinator's Website:

$a$ the Coordinator’s approach to each of the matters referred to in clause 4.5A.7; and

$b$ guidance on the information and assistance to be provided by AEMO, Western Power and other Rule Participants in accordance with clause

4.5A.11,

prior to developing the Whole of System Plan that is required to be developed by the Coordinator under clause 4.5A.2 by 30 September 2025.

4.5A.9. The Coordinator may from time to time amend the Coordinator’s

approach to any of the matters referred to in clause 4.5A.7 by publishing the updated approach on the WEM Website.

4.5A.10. The Coordinator must collaborate with AEMO and Western Power in

preparing the Whole of System Plan.

4.5A.11. At the request of the Coordinator, AEMO, Western Power and

other Rule Participants must provide information and assistance, which is, in the Coordinator’s opinion, necessary or desirable to enable the Coordinator to effectively prepare a Whole of System Plan.

4.5A.12. In preparing a Whole of System Plan, the Coordinator may, in

addition to the matters referred to in this section 4.5A, consider any other matters and information the Coordinator considers relevant.

4.5A.13. Before publishing a Whole of System Plan under clause 4.5A.1,

the Coordinator must:

$a$ publish a draft Whole of System Plan; and

$b$ invite Rule Participants and other interested persons, including proponents of non-network options, to make submissions on the draft Whole of System Plan by no later than a specified date (with the date to be specified by the Coordinator to be no earlier than 20 Business Days after the date on which the draft Whole of System Plan is published).

4.5A.14. A draft Whole of System Plan must:

$a$ identify a range of scenarios;

$b$ for each identified scenario, identify development options and potential projects;

$c$ describe how each identified scenario performs under any reasonable sensitivities;

$d$ assess the impact of each identified scenario on the power system and its various components;

$e$ include the results of the assessment for each identified scenario, together with an explanatory statement regarding the results;

$f$ include relevant information about network constraints, development opportunities across both the transmission and the distribution systems;

$g$ identify any Priority Project that Western Power is able to progress in accordance with the relevant provisions of the Electricity Network Access Code; and

$h$ provide an initial assessment, developed in consultation with each Network Operator, of whether non-network options are reasonably likely to meet a relevant identified network need.

4.5A.15. The Coordinator must provide a copy of a Whole of System Plan

to the Minister before publishing it in accordance with clause 4.5A.1.

4.5A.16. The Whole of System Plan to be published by the Coordinator

under clause 4.5A.1 must include:

$a$ all relevant matters referred to in clauses 4.5A.6 and 4.5A.14;

$b$ a summary of each submission received on the draft Whole of System Plan and the Coordinator’s response to it; and

$c$ any other matters the Coordinator considers relevant to the Whole of System Plan.

Explanatory Note

New section 4.5B creates obligations for Western Power to:

prepare and publish a Transmission System Plan (TSP);
consult with AEMO and the Coordinator on the assumptions, scenarios and inputs to ensure that, where relevant, different planning activities use the same analysis (e.g. modelling for the Whole of System Plan could be utilised by Western Power for its TSP); and
seek consumer feedback in the development of a TSP.

4.5B. Transmission System Plan

4.5B.1. A Network Operator must develop a Transmission System Plan, and

publish it on the Network Operator’s website, in accordance with this section 4.5B.

Explanatory Note

Clause 4.5B.2 is to ensure that Western Power develops the Transmission System Plan together with its Network Opportunity Map, which must be published by 1 October each year in accordance with the Access Code. The intent is to avoid duplication between the planning processes and to ensure that the same assumptions and inputs are used to the extent reasonably practicable.

4.5B.2. A Network Operator must publish a Transmission System Plan by no

later than 1 October each year, in conjunction with its Network Opportunity Map.

4.5B.3. A Transmission System Plan must:

$a$ establish a plan for the efficient development of a transmission system for a planning horizon of at least 10 years;

$b$ meet the Power System Security and Power System Reliability requirements; and

$c$ be in the long-term interests of consumers.

4.5B.4. A Transmission System Plan must include:

$a$ a summary of any significant costs to the Wholesale Electricity Market that have arisen, or may potentially arise, due to the condition of the transmission network, including:

i. binding Network Constraints, and the estimated market costs of those binding Network Constraints; and

ii. the frequency and magnitude of Energy Uplift Payments, including for Facilities subject to Network Constraints;

$b$ a set of investment options for developing the transmission system over the relevant planning horizon, which must consider network and non-network solutions to address the matters identified under clause

4.5B.4(a);

$c$ analysis of market related data and an assessment of the costs and benefits, including to the Wholesale Electricity Market, of the investment options identified under clause 4.5B.4(b);

$d$ a recommended development path for the transmission system that would maximise net benefits and seek to minimise the long-term costs of electricity supplied to consumers; and

$e$ a high-level assessment of how the recommended development path referred to in clause 4.5B.4(d) will meet the long-term interests of consumers.

4.5B.5. In developing a Transmission System Plan a Network Operator must

take into account:

$a$ the WEM Technical Standards under clause 2.8.14;

$b$ power system security and reliability standards and requirements under the WEM Rules and the Technical Rules;

$c$ any Priority Project identified in the Whole of System Plan or major augmentation that Western Power is able to progress in accordance with the Access Code;

$d$ the Network Quality and Reliability of Supply Code;

$e$ any government policy specified in the Whole of System Plan that the Coordinator considers may impact on the development of the Transmission System Plan, as may be advised by the Coordinator pursuant to the consultation process referred to in clause 4.5B.6 or specified in the Whole of System Plan published by the Coordinator under section

4.5A; and

$f$ any other matters that the Network Operator considers relevant to the Transmission System Plan.

4.5B.6. A Network Operator must consult with AEMO and the Coordinator on

the assumptions, inputs and scenarios the Network Operator must use in developing and updating a Transmission System Plan, including:

$a$ forecasted demand growth or reduction scenarios, including from the Long Term PASA and Whole of System Plan;

$b$ scheduled connection of new loads or generators;

$c$ expected Network modifications, augmentations, or retirement of existing Facilities or Network assets that impact costs in the Wholesale Electricity Market;

$d$ the Credible Contingency Events and other commonly occurring credible contingencies that may significantly impact the SWIS;

$e$ a range of facility dispatch scenarios or credible dispatch patterns;

$f$ data, modelling and results from the testing of scenarios in the Whole of System Plan, to the extent they are relevant as inputs to the Transmission System Plan;

$g$ relevant information from the Short Term PASA, Medium Term PASA and Long Term PASA studies conducted by AEMO under these WEM Rules; and

$h$ other market information that the Network Operator, AEMO or the Coordinator considers relevant to meeting the requirements for developing the Transmission System Plan in this section 4.5B.

4.5B.7. If, in the Network Operator’s opinion, new information becomes

available that should be used in place of the inputs from the Whole of System Plan specified in clause 4.5B.6(f), the Network Operator must consult with AEMO and the Coordinator on the accuracy and relevance of the new information for use in developing and updating the Transmission System Plan.

4.5B.8. A Network Operator may review the Transmission System Plan, or a

part of it, in consultation with AEMO and the Coordinator, where there is a material change in any of the assumptions, inputs or scenarios under clause 4.5B.6 or to a WEM Technical Standard.

4.5B.9. Before publishing a Transmission System Plan under clause

4.5B.1, a Network Operator must:

$a$ publish a draft Transmission System Plan;

$b$ invite users of the Network, other Rule Participants, electricity consumers and other interested persons to make submissions on the draft Transmission System Plan by no later than a specified date (with the date to be specified by the Network Operator to be no earlier than 20 Business Days after the date on which the draft Transmission System Plan is published).

4.5B.10. A Network Operator must:

$a$ take into account any submissions received on the draft Transmission System Plan; and

$b$ publish on the Network Operator's website a summary of each submission received on the draft Transmission System Plan and the Network Operator's response to it, redacting any commercially sensitive or other confidential information.

4.6. Reserve Capacity Requirements

4.6.1. The Reserve Capacity Requirement for a Reserve Capacity Cycle is

the Reserve Capacity Target for the Capacity Year commencing on 1 October of Year 3 of a Reserve Capacity Cycle as reported in the Statement of Opportunities Report for that Reserve Capacity Cycle.

4.6.2. The expected peak demand corresponding to the Reserve Capacity

Requirement is the forecasted value determined in accordance with clause

4.5.10(b)(ii) for the Capacity Year commencing on 1 October of Year 3 of

a Reserve Capacity Cycle.

4.6.3. The preliminary Reserve Capacity Requirement for a Reserve

Capacity Cycle to be included in the relevant Request for Expression of Interest is the Reserve Capacity Target for the Capacity Year commencing on 1 October of Year 3 of the Reserve Capacity Cycle as reported in the Statement of Opportunities Report for the preceding Reserve Capacity Cycle.

Certification of Reserve Capacity

4.7. The Reserve Capacity Information Pack

4.7.1. [Blank]

4.7.2. By the time specified in clause 4.1.10, AEMO must publish the

Reserve Capacity Information Pack for a Reserve Capacity Cycle on the WEM Website.

4.7.3. The Reserve Capacity Information Pack for a Reserve Capacity

Cycle must include the following information:

$a$ the Reserve Capacity Requirement for the Reserve Capacity Cycle, as determined in accordance with clause 4.6.1;

$b$ an explicit description of the Availability Curve to be used in restricting the amount of Reserve Capacity only available for a limited number of hours per year that can be traded bilaterally in accordance with clause 4.14.9; and

$c$ instructions as to how to obtain from the WEM Website a copy of:

i. the Request for Expression of Interest; and

ii. the report described in clause 4.2.7,

for the Reserve Capacity Cycle.

4.8. Who Can Apply for Certification of Reserve Capacity

4.8.1. Subject to clause 4.8.2, a Market Participant may apply for

certification of the amount of Reserve Capacity which can be provided by a Facility if:

$a$ the Facility is a Registered Facility other than a Network; or

$b$ the Facility is not a Registered Facility but the Market Participant intends to have the Facility registered as a Registered Facility other than a Network by the commencement date of the Reserve Capacity Obligations for the relevant Reserve Capacity Cycle as specified in clause 4.1.26.

Explanatory Note

Clause 4.8.2 is amended to remove the redundant reference to the first Reserve Capacity Cycle and to replace it with a new clause stating that the submission of an Expression of Interest for a new Facility or Facility upgrade is to be a pre-condition to making an application for certification of Reserve Capacity for the new Facility or Facility upgrade.

The Expression of Interest process is to be mandatory for new Facilities and Facility upgrades so that the Network Operator and AEMO can develop RCM Limit Advice and RCM Constraint Equations in accordance with new section 4.4B.

4.8.2. Subject to clause 4.8.3, AEMO must not accept an application for

certification of Reserve Capacity under clause 4.8.1 for a Reserve Capacity Cycle, for a facility, or an upgrade of a Facility, that has not been assigned Capacity Credits in a previous Reserve Capacity Cycle, unless an Expression of Interest for the facility, or upgrade of the Facility, for that Reserve Capacity Cycle has been provided to AEMO under clause 4.2.6.

Explanatory Note

Clause 4.8.3(b) is amended to clarify that clause 4.8.2 – requirement for an Expression of Interest to be submitted to AEMO for new facilities or upgrades to new facilities – does not apply to applications for Conditional Certified Reserve Capacity.

4.8.3. Clause 4.8.2 does not apply to:

$a$ an application for Early Certified Reserve Capacity submitted under clause 4.28C.2 for a facility, or an upgrade of a Facility; or

$b$ an application for Conditional Certified Reserve Capacity submitted under clause 4.9.1(b) for a facility; or

$c$ an application for Certified Reserve Capacity submitted under clause 4.9.1(a) for a Facility subject to an NCESS Contract.

Explanatory Note

Section 4.8A requires AEMO to assign an indicative Facility Class and indicative Facility Technology Type to a new Facility or Facility upgrade. This will enable a prospective applicant for Certified Reserve Capacity or Early Certified Capacity to identify the information it will need to provide to AEMO under section 4.10 (in support of its application), and will assist in its discussions regarding metering with the relevant Network Operator.

Indicative Facility Class and Facility Technology Type

4.8A. Indicative Facility Class and Indicative Facility Technology Type

4.8A.1. Where AEMO receives an Expression of Interest in relation to a

new facility or facility upgrade in accordance with clause 4.2.6, by the date and time specified in clause 4.1.7, AEMO must:

$a$ assign an indicative Facility Class and one or more indicative Facility Technology Type, where relevant, to the new facility or facility upgrade in accordance with the WEM Procedure referred to in clause 4.8A.7; and

$b$ notify the person who submitted the Expression of Interest of the indicative Facility Class and indicative Facility Technology Types assigned to the new facility or facility upgrade.

4.8A.2. AEMO may, if it reasonably considers it is required to enable it

to carry out its obligations under clause 4.8A.1, request clarification or further information from the person who submitted the relevant Expression of Interest and that person must comply with the request by the time specified in the request.

4.8A.3. A person that intends to apply for:

$a$ Early Certified Reserve Capacity under section 4.28C for a new facility or facility upgrade; or

$b$ Conditional Certified Reserve Capacity under clause 4.9.1(b) for a new facility; or

$c$ Certified Reserve Capacity under clause 4.9.1(a) for a new Facility subject to an NCESS Contract,

must, prior to submitting the application, apply to AEMO for an indicative Facility Class and one or more indicative Facility Technology Type to be assigned to the facility or facility upgrade.

4.8A.4. An application under clause 4.8A.3 must include the information

required under clause 4.4.1.

4.8A.5. Where AEMO receives an application under clause 4.8A.3, AEMO

must:

$a$ assign an indicative Facility Class and one or more indicative Facility Technology Type to the new facility or facility upgrade in accordance with the WEM Procedure referred to in clause 4.8A.7; and

$b$ notify the applicant of the indicative Facility Class and indicative Facility Technology Types assigned to the new facility or facility upgrade; or

$c$ request the applicant provide clarification or further information, in which case, the application submitted by the applicant under clause 4.8A.3 will be deemed to be withdrawn and then resubmitted under clause 4.8A.3 once AEMO receives the clarification or further information.

4.8A.6. AEMO must notify the applicant of the indicative Facility Class

and indicative Facility Technology Types assigned to the new facility or facility upgrade under clause 4.8A.5(b) within 30 days of the later of:

$a$ receipt of the application under clause 4.8A.3; and

$b$ receipt of any clarification or further information requested from the applicant under clause 4.8A.5(c) in relation to the application.

4.8A.7. AEMO must document the following in a WEM Procedure:

$a$ the processes to be followed by AEMO in determining and assigning an indicative Facility Class and an indicative Facility Technology Type to a new facility or facility upgrade under this section 4.8A or an unregistered facility under clause 1.45.9;

$b$ the processes to be followed by AEMO in determining and assigning an RCM Facility Class (as defined in clause 1.45.1) and Facility Technology Type to a Registered Facility under section 1.45;

$c$ the information required to be provided in support of an application under clause 4.8A.3;

$d$ the processes to be followed by an applicant in relation to making an application under clauses 1.45.4, 1.45.8 or 4.8A.3; and

$e$ any other matters AEMO considers relevant.

4.9. Process for Applying for Certification of Reserve Capacity

4.9.1. Applications for certification of Reserve Capacity:

$a$ for the current Reserve Capacity Cycle may be lodged with AEMO from the date and time specified in clause 4.1.7 and until the time specified in clause 4.1.11; and

$b$ for a future Reserve Capacity Cycle may be lodged with AEMO at any time prior to the date and time specified in clause 4.1.7 for the Reserve Capacity Cycle to which the application relates. To avoid doubt, an application for Early Certified Reserve Capacity must be made under and in accordance with section 4.28C.

4.9.2. Only the Market Participant which has registered a Facility, or

which intends to register a Facility, may apply for certification of Reserve Capacity in respect of that Facility.

Explanatory Note

Clause 4.9.3(b) is amended to refer to Non-Scheduled Facilities and Intermittent Generating Systems.

Clause 4.9.3(bA) has been added to expressly require Facility Sub-Metering data to be submitted to AEMO in support of a Facility's Certified Reserve Capacity (Relevant Level).

4.9.3. A Market Participant applying for certification of Reserve

Capacity must provide to AEMO:

$a$ the data specified in clause 4.10.1, in the format specified in the WEM Procedure referred to in clause 4.9.10;

$b$ in the case of an application for certification of Reserve Capacity for a Non-Scheduled Facility (excluding where clause

4.11.1(bD)(ii) applies) or an Intermittent Generating System that is yet

to enter service, the report described in clause 4.10.3;

(bA) in the case of an application for certification of Reserve Capacity for a Facility containing an Intermittent Generating System which has installed Facility Sub-Metering in accordance with clause 2.29.12, the data from the Facility Sub-Metering for the period identified in step 1(a) of the Relevant Level Methodology during which the Facility Sub-Metering was installed; and

$c$ in the case of an application for conditional certification for a future Reserve Capacity Cycle, or a subsequent application for Early Certified Reserve Capacity for a Facility for the same Reserve Capacity Cycle, an Application Fee to cover the cost of processing the application.

4.9.4. Applications for certification of Reserve Capacity must be made

in the form prescribed by AEMO.

Explanatory Note

Clause 4.9.5(c) is amended as a result of DSM Reserve Capacity Security being dealt with in new section 4.13A and to include Non-Scheduled Facilities.

Clause 4.9.5(d) is amended for consistency with the drafting style of the WEM Rules.

4.9.5. If AEMO assigns Certified Reserve Capacity to a Facility for a

future Reserve Capacity Cycle under section 4.11 (“Conditional Certified Reserve Capacity”):

$a$ the Conditional Certified Reserve Capacity is conditional upon the information included in the application for Certified Reserve Capacity remaining correct as at the date and time specified in clause 4.1.11 for that future Reserve Capacity Cycle;

$b$ the Market Participant holding the Conditional Certified Reserve Capacity must, in accordance with clauses 4.9.1 and 4.9.3, re-lodge an application for Certified Reserve Capacity with AEMO between the date and time specified in clause 4.1.7 and the time specified in clause

4.1.11 for that future Reserve Capacity Cycle;

$c$ if AEMO is satisfied that the application re-lodged in accordance with clause 4.9.5(b) is consistent with the information upon which the Conditional Certified Reserve Capacity was assigned and is correct, then AEMO must confirm:

i. the Certified Reserve Capacity;

ii. [Blank]; and

iii. the Reserve Capacity Security or DSM Reserve Capacity Security levels,

that were previously conditionally assigned, set or determined by AEMO, subject to the Certified Reserve Capacity for a Non-Scheduled Facility (excluding where clause 4.11.1(bD)(ii) applies) or an Intermittent Generating System being assigned in accordance with clause 4.11.2(b); and

$d$ if the application re-lodged in accordance with clause 4.9.5(b) is found by AEMO to be inaccurate or is not consistent with the information upon which the Conditional Certified Reserve Capacity was assigned, then AEMO must process the application without regard for the Conditional Certified Reserve Capacity.

4.9.6. AEMO must notify an applicant for certification of Reserve

Capacity of receipt of the application within one Business Day of receipt.

4.9.7. If a Market Participant fails to receive notification of receipt

from AEMO in accordance with clause 4.9.6, then it must contact AEMO and arrange for re-submission of the information prior to the time and date specified in clause 4.1.11.

4.9.7A. Where AEMO has received an application for certification of

Reserve Capacity under clause 4.9.1 for a future Reserve Capacity Cycle, the application will be processed by AEMO at the time AEMO next processes applications for Certified Reserve Capacity for a Reserve Capacity Cycle in accordance with section 4.11.

4.9.8. AEMO must notify applicants for certification of Reserve Capacity

for:

$a$ the current Reserve Capacity Cycle, of the quantity of the Certified Reserve Capacity assigned to each Facility covered by the application, by the date and time specified in clause 4.1.12;

$b$ a future Reserve Capacity Cycle, of the quantity of Conditional Certified Reserve Capacity assigned to each Facility covered by that application by the date and time specified in clause 4.1.12 in the Reserve Capacity Cycle when AEMO next processes applications for Certified Reserve Capacity in accordance with section 4.11.

4.9.9. AEMO must decide whether or not to assign Certified Reserve

Capacity to a Facility in respect of a Reserve Capacity Cycle, and if so, the quantity to be assigned. If AEMO decides to assign Certified Reserve Capacity to a Facility in respect of a Reserve Capacity Cycle, AEMO must advise the applicant:

$a$ of the amount of Certified Reserve Capacity assigned to the Facility in respect of the Reserve Capacity Cycle, as determined in accordance with section 4.11 or clause 4.9.5(c) (as applicable);

$b$ [Blank]

$c$ of any Reserve Capacity Security or DSM Reserve Capacity Security required as a condition of a Market Participant holding the Certified Reserve Capacity, as determined in accordance with clauses 4.13.2,

4.13A.1, 4.13A.4 or 4.9.5(c) (as applicable);

$d$ in the case of Conditional Certified Reserve Capacity, that the certification is subject to the conditions in clauses 4.9.5(a) and

4.9.5(b);

$e$ upon the request of the applicant, of the calculations upon which AEMO’s determinations are based; and

$f$ whether AEMO accepted or rejected a proposed alternative value to be used in the calculation of the Required Level for a Facility assessed under the methodology described in clause 4.11.2(b) in its application for certification of Reserve Capacity, as determined in accordance with clause 4.11.2A, if applicable.

4.9.9A. AEMO must publish, by the date and time specified in clause

4.1.15A, the level of Certified Reserve Capacity assigned to each

Facility.

Explanatory Note

AEMO must document the processes it will follow when assessing the capacity of an Electric Storage Resource to account for degradation of the Electric Storage Resource.

However, clause 4.9.10(b) reflects the amendments contained in the Miscellaneous Amendments No. 2, as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last. Please refer to the Tranches 2 and 3 Amendments to see the changes to clause 4.9.10(b) that will apply until the amendments pursuant to the Miscellaneous Amendments No. 2 commence.

Clause 4.9.10(c) is also amended to remove the requirement for the WEM Procedure to specify how AEMO sets Reserve Capacity Obligation Quantities under clause 4.12.4 because RCOQ is no longer set at the point of assigning Certified Reserve Capacity (i.e. as a result of the new Network Access Quantity framework) and will be set in accordance with clause 4.12.4.

4.9.10. AEMO must document the following in a WEM Procedure:

$a$ the procedures that Market Participants must follow when applying for Certified Reserve Capacity;

$b$ the methodology AEMO uses for determining Planned Outage rates and Forced Outage rates, which must treat Charge Level shortfalls for Electric Storage Resources, as calculated under clause 4.26.1E, as Forced Outages; and

$c$ the procedures AEMO must follow when processing applications for Certified Reserve Capacity, including:

i. how Certified Reserve Capacity is assigned; and

ii. how AEMO will account for any degradation of an Electric Storage Resource, based on:

1. the performance standards and specifications for the Electric Storage Resource provided by the relevant manufacturer; and

2. the performance of the Electric Storage Resource in the Capacity Year at the time the application for certification of Reserve Capacity is required to be processed, where available.

4.10. Information Required for the Certification of Reserve Capacity

Explanatory Note

Clauses 4.10.1(bA)(iii) and 4.10.1(bA)(iv) are amended and deleted, respectively, to reflect the deletion of the current regime for Constrained Access Facilities.

Clause 4.10.1(f) is amended to:

delete the reference to three separate blocks of Reserve Capacity with respect to Interruptible Loads and DSPs; and
add a new subclause (viii)) which requires a Market Participant to provide the relevant Transmission Node Identifier (TNI) in its application for certification of Reserve Capacity.

However, clause 4.10.1(bA)(iii) is also amended by the Miscellaneous Amendments No. 1 (Schedules A and E). As clause 4.10.1(bA)(iii) is amended to reflect the amendments contained in the Miscellaneous Amendments No. 1 (Schedule E), as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last (at a date specified in a notice to be published by the Minister), please refer to the Miscellaneous Amendments No. 1 (Schedule A) to see the changes to clause 4.10.1(bA)(iii) that will commence on 1 July 2021 and apply until the Miscellaneous Amendments No. 1 (Schedule E) to clause 4.10.1(bA)(iii) commences.

Clause 4.10.1 is modified to clarify that Facilities are likely to contain loads as well as energy producing systems, and to remove the undefined term 'embedded load' and use defined terms.

Tranche 6 Exposure Draft 1 included amendments to clause 4.10.1 to:

clarify which requirements under clause 4.10.1(e) relate to a Non-Intermittent Generating System rather than its parent Facility;
remove unnecessary repetition by combining clauses 4.10.1(fA), ### 4.10.1(fB) and 4.10.1(fC) into a single clause 4.10.1(fA);
extend clause 4.10.1(fD)(ii) to require the provision of maximum Charge Level capabilities and temperature dependence information for Non-Scheduled Facilities that comprise only Electric Storage Resources; and
clarify that the test in clause 4.10.1(k) should only use configuration information provided under clause 4.10.1(dA) that applies to the components being assigned Certified Reserve Capacity using the Relevant Level Methodology. For example, for a Semi-Scheduled Facility comprising an Electric Storage Resource and an Intermittent Generating System, only the configuration information provided under clause ### 4.10.1(dA) for the Intermittent Generating System should be considered.

Tranche 6 Exposure Draft 2 included an amendment to clause 4.10.1(f) to remove the requirement for a DSP Ramp Rate Limit, because DSP Ramp Rate Limits are no longer required under the proposed changes to Demand Side Programme dispatch arrangements. This change commenced on 1 March 2023 (after the closure of the certification application window for the 2022 Reserve Capacity Cycle).

Additionally, clauses 4.10.1(e), 4.10.1(fA) and 4.10.1(fD) are now amended to use the standard term “41 degrees Celsuis”.

4.10.1. Each Market Participant must ensure that information submitted

to AEMO with an application for certification of Reserve Capacity pertains to the Reserve Capacity Cycle to which the certification relates, and is supported by documented evidence and includes, where applicable, except to the extent that it is already accurately provided in Standing Data, the following information:

$a$ the identity of the Facility;

$b$ the Reserve Capacity Cycle to which the application relates;

(bA) with the exception of applications for Conditional Certified Reserve Capacity, the following:

i. evidence of an Arrangement for Access or evidence that the Market Participant has accepted an Access Proposal from the relevant Network Operator made in respect of the Facility;

ii. evidence that the Facility will be entitled to have access from a specified date occurring prior to the date specified in clause

4.10.1(c)(iii)(7); and

iii. except where the Facility is a Demand Side Programme, the Declared Sent Out Capacity for the Facility at the relevant connection point;

$c$ if the Facility, or part of the Facility, is yet to enter service:

i. [Blank]

ii. with the exception of applications for Conditional Certified Reserve Capacity, evidence that any necessary Environmental Approvals have been granted or evidence supporting the Market Participant’s expectation that any necessary Environmental Approvals will be granted in time to have the Facility meet its Reserve Capacity Obligations by the date specified in clause 4.10.1(c)(iii)(7); and

iii. the Key Project Dates occurring after the date the request is submitted, including, if applicable, but not limited to:

1. when all approvals will be finalised or, in the case of Demand Side Programmes, when all required contracts will be in place;

2. when financing will be finalised;

3. when site preparation will begin;

4. when construction will commence;

5. when generating equipment will be installed or, in the case of Demand Side Programmes, when all required control equipment will be in place;

6. when the Facility, or part of the Facility, will be ready to undertake Commissioning Tests; and

7. when the Facility, or part of the Facility, will have completed all Commissioning Tests and be capable of meeting Reserve Capacity Obligations in full;

$d$ if the Facility is a Registered Facility that will be decommissioned prior to the date specified in clause 4.1.30(a) for the Reserve Capacity Cycle to which the application relates, the planned decommissioning date;

(dA) except where the Facility is a Demand Side Programme, a description and a configuration of the main components of the Facility including the nameplate capacity of each component, expressed in MW;

Explanatory Note:

Clause 4.10.1(dB) is added to require that Market Participants to provide the minimum stable loading level for their Facilities to be used in the creation of facility dispatch scenarios required for the NAQ Model. This will ensure that AEMO creates credible dispatch scenarios, which avoid dispatching a Facility below its technical capability.

(dB) for a Semi-Scheduled Facility or Scheduled Facility, the minimum stable loading level of the Facility expressed in MW;

$e$ for a Non-Intermittent Generating System:

i. the capacity of the Non-Intermittent Generating System and the temperature dependence of that capacity;

ii. the maximum sent out capacity, net of Loads, that can be guaranteed to be available for supply to the relevant Network from the Non-Intermittent Generating System when it is operated normally at an ambient temperature of 41 degrees Celsius;

iii. [Blank]

iv. at the option of the applicant, the method to be used to measure the ambient temperature at the site of the Non-Intermittent Generating System for the purpose of defining the Reserve Capacity Obligation Quantity, where the method specified may be either:

1. a publicly available daily maximum temperature at a location representative of the conditions at the site of the Facility as reported daily by a meteorological service; or

2. a daily maximum temperature measured at the site of the Facility by the SCADA system operated by AEMO or the relevant Network Operator (as applicable).

(Where no method is specified, a temperature of 41 degrees Celsius will be assumed);

v. details of primary and any alternative fuels,[1] including:

1. where the Non-Intermittent Generating System has primary and alternative fuels:

i. the process for changing from one fuel to another; and

ii. the fuel or fuels which the Non-Intermittent Generating System is to use in respect of the application for Certified Reserve Capacity; and

2. details acceptable to AEMO together with supporting evidence of both firm and any non-firm fuel supplies and the factors that determine restrictions on fuel availability that could prevent the Non-Intermittent Generating System operating at its full capacity for Peak Trading Intervals on Business Days;

vi. the expected forced and unforced outage rate based on manufacturer data; and

vii. for Non-Intermittent Generating Systems that operated for at least 12 months, the forced and unforced outage rate of the Non-Intermittent Generating System;

Explanatory Note

Clause 4.10.1(f) is amended to remove the requirement for a DSP Ramp Rate Limit, because DSP Ramp Rate Limits are no longer required under the proposed changes to Demand Side Programme dispatch arrangements.

$f$ for Demand Side Programmes:

i. the amount of Reserve Capacity the Market Participant expects to make available from the Facility;

ii. the maximum number of hours that the Demand Side Programme will be available to provide Reserve Capacity during a Capacity Year, which must be at least 200 hours;

iii. the maximum number of hours per day that the Facility will be available to provide Reserve Capacity if issued a Dispatch Instruction, where this must be at least twelve hours;

iv. [Blank]

v. the minimum notice period required for dispatch under clause 7.6.15 of the Facility;

vi. the periods when the Facility can be dispatched, which must include the period between 8:00 AM and 8:00 PM on all Business Days; and

vii. [Blank]

viii. the single Transmission Node Identifier for the Facility;

(fA) for an Electric Storage Resource, except where clause 4.10.1(fD) applies:

i. the nameplate capacity and maximum and minimum Charge Level capabilities of the Electric Storage Resource and the temperature dependence of that capacity;

ii. the maximum sent out capacity, net of Loads, that can be guaranteed to be available for supply to the relevant Network from the Electric Storage Resource when it is operated normally at an ambient temperature of 41 degrees Celsius;

iii. the sent-out capacity, net of Loads that can be guaranteed to be available for supply across the Electric Storage Resource Obligation Duration, to the relevant Network from the Electric Storage Resource when it is operated normally at an ambient temperature of 41 degrees Celsius for each year of the expected life of the Electric Storage Resource, which must be supported by manufacturer data;

iv. manufacturer nameplate capacity and maximum Charge Level capability and minimum Charge Level capability data of the Electric Storage Resource for each year of its expected remaining life; and

v. the expected forced and unforced outage rate of the Electric Storage Resource taking into account the Electric Storage Resource Obligations Duration based on manufacturer data;

(fB) [Blank]

(fC) [Blank]

(fD) in addition to any other requirements in this clause 4.10.1 for a Non-Scheduled Facility, for a Non-Scheduled Facility comprising only an Electric Storage Resource, including a Small Aggregation comprising aggregated Electric Storage Resources:

i. the location of the single Transmission Node Identifier behind which the aggregated Electric Storage Resources will be connected;

ii. the nameplate capacity and minimum and maximum Charge Level capabilities of each Electric Storage Resource and the temperature dependence of that capacity;

iii. the sent-out capacity, net of Parasitic Loads that can be guaranteed to be available for supply across the Electric Storage Resource Obligation Duration, to the relevant Network from each Electric Storage Resource when it is operated normally at an ambient temperature of 41 degrees Celsius for each year of the expected life of the Electric Storage Resource, supported by manufacturer data; and

iv. evidence that demonstrates the Electric Storage Resources are expected to discharge during the Electric Storage Resource Obligation Intervals;

$g$ for all Facilities:

i. any restrictions on the availability of the Facility due to staffing constraints; and

ii. any other restrictions on the availability of the Facility;

$h$ whether the application relates to confirmation of Conditional Certified Reserve Capacity;

Explanatory Note

Clause 4.10.1(i) is amended to clarify that Market Participants can only nominate for AEMO to use the Relevant Level Methodology for determining the quantity of Certified Reserve Capacity for Non-Scheduled Facilities and Semi-Scheduled Facilities, excluding any storage component of the Facility.

$i$ [Blank];

$j$ evidence of whether the Facility will be subject to an NCESS Contract;

$k$ where a Facility, or component of a Facility, is being assigned Certified Reserve Capacity or Conditional Certified Reserve Capacity using the methodology described in clause 4.11.2(b) and the Facility or relevant component of the Facility is already in full operation under the configuration for which certification is being sought (as specified for the Facility or component under clause 4.10.1(dA)), the date on which the Facility or component of the Facility became fully operational under this configuration, unless this date has already been provided to AEMO in a previous application for certification of Reserve Capacity;

Explanatory Note

Clause 4.10.1(l) is amended to remove the reference to the ‘Balancing Facility Requirements’, and replaced it with a reference to the Market Participant being required to provide evidence of how its Facility will be able to receive, confirm and respond to Dispatch Instructions.

$l$ evidence of the extent to which the Facility will be able to receive, confirm and implement Dispatch Instructions from AEMO; and

Explanatory Note

Where an applicant wishes for its Facility (or a component of it) to be classified as a Network Augmentation Funding Facility for the purposes of the priority order in respect to the determination of a Network Access Quantity to the Facility under section 4.15, the applicant must provide a notice to AEMO nominating that the Facility be classified as a Network Augmentation Funding Facility and the supporting information specified in clause 4.10A.6.

Clause 4.10.1(m) is amended to provide consistency with clause ### 4.10A.1 which does not provide for 'part' of a Facility that is not an upgrade to be treated as a Network Augmentation Funding Facility.

$m$ subject to clauses 4.10A.2 and 4.10A.3, a Market Participant that wishes to nominate that its Facility or an upgrade of its Facility, be classified as a Network Augmentation Funding Facility, must provide to AEMO:

i. a notice in writing from the Market Participant nominating that the Facility or an upgrade of the Facility, as applicable, be classified as a Network Augmentation Funding Facility; and

ii. the information specified in clause 4.10A.6.

4.10.2. The types of Facilities eligible to use the methodology

described in clause 4.11.2(b), for the purpose of assigning Certified Reserve Capacity or Conditional Certified Reserve Capacity to the Facility are:

$a$ components of Semi-Scheduled Facilities and Scheduled Facilities that are Intermittent Generating Systems;

$b$ Non-Scheduled Facilities, except Non-Scheduled Facilities comprising only Electric Storage Resources that have not been in operation for the full period of performance assessment identified in step 1(a) of the Relevant Level Methodology; and

$c$ Non-Scheduled Facilities comprising only Electric Storage Resources that have been in operation for the full period of performance assessment identified in step 1(a) of the Relevant Level Methodology.

4.10.3. An application for certification of Reserve Capacity for a

Facility, or component of a Facility, that is to be assessed using the methodology described in clause 4.11.2(b) for a Facility, or relevant component of a Facility, that:

$a$ is yet to enter service;

$b$ is to re-enter service after significant maintenance;

$c$ is to re-enter service after having been upgraded; or

$d$ has not operated with the configuration specified for the Facility or component (as applicable) under clause 4.10.1(dA) for the full period of performance assessment identified in step 1(a) of the Relevant Level Methodology,

must include a report prepared by an expert accredited by AEMO in accordance with clause 4.11.6. AEMO will use the report to assign Certified Reserve Capacity for the Facility, or the relevant component of the Facility, that is to be assessed using the methodology described in clause 4.11.2(b) and to determine the Required Level for that Facility.

4.10.3A. A report provided under clause 4.10.3 must include:

$a$ for each Trading Interval during the period identified in step 1(a) of the Relevant Level Methodology, a reasonable estimate of the expected energy that would have been sent out by the Facility or the component of the Facility assessed using the methodology described in clause 4.11.2(b) had it been in operation;

$b$ a value, expressed in MW as a sent out value, which equals the 5 percent probability of exceedance of expected generation output for the Facility, or component of the Facility, for all the Trading Intervals that occurred within the last three years up to, and including, the last Hot Season, where this value is to be used in the calculation of the Required Level;

$c$ a proposed alternative value to that specified in clause

4.10.3A(b), expressed in MW as a sent out value, to apply for the

purposes of the Required Level, if in the opinion of the expert the value provided under clause 4.10.3A(b) would not be a reasonable representation of the Facility’s, or component of the Facility's, 5 percent probability of exceedance of expected generation output during its first year of operation; and

$d$ the reasons for any proposed alternative value provided under clause 4.10.3A(c).

4.10.4 If a Market Participant becomes aware of any changes to the details it provided to AEMO in accordance with this section 4.10 for a Facility yet to commence operation or a Facility that is undergoing significant maintenance, then the Market Participant must advise AEMO of the revised details for the Facility as soon as practicable.

Explanatory Note

Market Participants who fund the cost of augmenting the shared network will be assigned a Network Access Quantity in priority to other new entrants.

New replacement section 4.10A sets out the process for a Facility to be classified as a Network Augmentation Funding Facility and the priority such Facilities will be afforded for the purpose of AEMO determining Network Access Quantities for Facilities in accordance with section 4.15.

The process includes:

the Market Participant must nominate to be classified as a Network Augmentation Funding Facility in the Expression of Interest for the Reserve Capacity Cycle for which it is seeking certification of Reserve Capacity for the Facility;
the Market Participant must provide evidence of its commitment to fund the augmentation and that the augmentation will be completed and in-service before the start of the Capacity Year to which the application for certified Reserve Capacity relates;
the funding must increase the capacity of the shared network and not solely comprise the Market Participant’s contribution for connection assets;
AEMO will validate the information provided by the Market Participant with the relevant Network Operator and determine whether the Facility will be classified as a Network Augmentation Funding Facility;
where the Facility is classified as a Network Augmentation Funding Facility, it will take priority over certain other new entrants for the purposes of AEMO assignment Network Access Quantities to Facilities; and
AEMO will develop or update Constraint Equations based on Limit Advice provided by the relevant Network Operator in respect of the augmentation for use in the Network Access Quantity Model.

A Network Augmentation Funding Facility will only be assigned an NAQ taking into account the additional network capacity as a result of the augmentation works paid by the Market Participant in respect the Facility if the NAQ does not negatively impact on the NAQ determined for Facilities higher up in the priority order as set out in Appendix 3.

4.10A. Network Augmentation Funding Facility

4.10A.1. A reference to a Facility in this section 4.10A includes an

upgrade of a Facility for which the Market Participant has nominated to be classified as a Network Augmentation Funding Facility under clause

4.10.1(m).

Explanatory Note

Clause 4.10A.2 sets out the criteria for a Facility be eligible to be classified as a Network Augmentation Funding Facility.

Clause 4.10A.2(d) is added to clarify that a Facility can only be classified as a Network Augmentation Funding Facility if they nominate it as such in the relevant Expression of Interest.

The Network Operator only has an obligation to provide Limit Advice for Network Augmentation Funding Facility that nominate in their Expression of Interest. Therefore, a person must nominate in the Expression of Interest that the Facility is expected to be classified as a Network Augmentation Funding Facility to ensure AEMO has the necessary Limit Advice to be used in the NAQ Model.

4.10A.2. For the purposes of clause 4.10.1(m), a Facility may only be

nominated to be classified as a Network Augmentation Funding Facility in respect of a Reserve Capacity Cycle if:

$a$ the Facility is an Energy Producing System;

$b$ the Market Participant for the Facility has committed to funding Network Augmentation Works;

$c$ the Network Augmentation Works are expected to be in-service (which includes having completed all required commissioning tests) by 1 October of Year 3 of the Reserve Capacity Cycle to which the application for certification of Reserve Capacity for the Facility relates; and

$d$ the Expression of Interest for the Facility specified that the Facility was expected to be nominated to be classified as a Network Augmentation Funding Facility in accordance with clause 4.4.1(d)(vi).

Explanatory Note

Except for applications for Early Certified Reserve Capacity, clause ### 4.10A.3 prohibits a Market Participant from seeking to have a Facility classified as a Network Augmentation Funding Facility in more than one Reserve Capacity Cycle in respect to the same Network Augmentation Works.

Where a Market Participant applies for Early Certified Reserve Capacity for a Facility that it nominates to be classified as a Network Augmentation Funding Facility, the Facility will be treated as a Network Augmentation Funding Facility in the Reserve Capacity Cycle for the Capacity Year in which the Market Participant is seeking Capacity Credits for the Facility.

4.10A.3. Subject to clause 4.10A.4, a Market Participant may only

nominate a Facility to be classified as a Network Augmentation Funding Facility in the Reserve Capacity Cycle for which the Network Augmentation Works are expected to be in-service at the start of the Capacity Year for that Reserve Capacity Cycle.

4.10A.4. A Facility that is classified as a Network Augmentation Funding

Facility in accordance with this section 4.10A, will be classified as a Network Augmentation Funding Facility for a single Reserve Capacity Cycle with respect to the relevant Network Augmentation Works, except where the Facility was assigned Early Certified Reserve Capacity in accordance with section 4.28C, in which case the Facility will be treated in accordance with Appendix 3 in any earlier Reserve Capacity Cycle.

4.10A.5. A Facility or upgrade to a Facility will be classified as a

Network Augmentation Funding Facility, in respect of the Reserve Capacity Cycle to which the application for Certified Reserve Capacity for the Facility submitted under clause 4.9.1 relates, where:

$a$ the Market Participant has nominated that the Facility be classified as a Network Augmentation Funding Facility in its application for certification of Reserve Capacity in respect of the Facility under clause 4.10.1(m);

$b$ the Network Operator has verified the information specified in a request by AEMO under clause 4.10A.7 in accordance with clause 4.10A.8(a); and

$c$ AEMO has assigned Certified Reserve Capacity to the Facility under clause 4.9.9.

Explanatory Note

Clause 4.10A.6 sets out the information a Market Participant must provide to AEMO in support of nomination that its Facility be classified as a Network Augmentation Facility.

The information must be provided to AEMO by 24 June of Year 1 of the Reserve Capacity Cycle, being the latest date specified in clause 4.1.11 that AEMO will accept applications for Certified Reserve Capacity under clause 4.9.1.

4.10A.6. Where a Market Participant has nominated that its Facility be

classified as a Network Augmentation Funding Facility under clause

4.10.1(m), without limiting any other information the Market Participant

may be required to provide to AEMO under clause 4.10.1, the Market Participant must provide the following information to AEMO by the date and time specified in clause 4.1.11:

$a$ evidence that the Market Participant has committed to funding the Network Augmentation Works associated with the relevant Facility;

$b$ evidence confirming that the Network Augmentation Works are expected to be in-service by 1 October of Year 3 of the Reserve Capacity Cycle to which the application for Certified Reserve Capacity relates; and

$c$ any other information specified in the WEM Procedure referred to in clause 4.10A.11.

Explanatory Note

Clauses 4.10A.7, 4.10A.8, 4.10A.9 and 4.10A.10 set out the process for AEMO to validate the information provided by a Market Participant under clause 4.10A.5 by verifying it with the relevant Network Operator and notifying the Market Participant whether or not the Facility is classified as a Network Augmentation Funding Facility.

A stakeholder submission suggested that there appears to be a procedural step missing in this verification process in that it would be prudent to allow AEMO to request further information should it require such information, before having to reject an application. This will ensure additional administrative burden does not result where an applicant would need to re-lodge an application if information is missing. The ETIU and AEMO will examine this issue to determine whether additional process is required in the WEM Rules.

4.10A.7. Within 5 Business Days of receiving the information provided by

a Market Participant in accordance with clause 4.10A.6, AEMO must request the relevant Network Operator to verify the information.

4.10A.8. Within ten Business Days of receiving a request from AEMO under

clause 4.10A.7, the Network Operator must notify AEMO:

$a$ that it verifies the information specified in the request; or

$b$ that it does not agree with the information specified in the request and the reasons for its decision.

4.10A.9. Where the conditions specified in clause 4.10A.5 are met, AEMO

must:

$a$ classify the Facility to which the information relates as a Network Augmentation Funding Facility; and

$b$ notify the Market Participant that the Facility to which the information relates is classified as a Network Augmentation Funding Facility at the same time AEMO notifies the Market Participant of the Certified Reserve Capacity for the Facility under clause 4.1.12.

4.10A.10. Where the Network Operator does not agree with the information

specified in a request in accordance with clause 4.10A.8(b), AEMO must, within one Business Day of receiving the notification from the Network Operator:

$a$ notify the Market Participant that the Facility to which the information relates will not be classified as a Network Augmentation Funding Facility; and

$b$ provide the Market Participant with the reasons provided by the Network Operator.

Explanatory Note

Clause 4.10A.11 requires AEMO to document in a WEM Procedure any further information to be provided by a Market Participant for the purposes of nominating that its Facility be classified as a Network Augmentation Funding Facility.

4.10A.11. AEMO must document in a WEM Procedure the information required

to be provided by a Market Participant under clause 4.10A.6 in support of its nomination that a Facility be classified as a Network Augmentation Funding Facility.

Explanatory Note

The requirement from clause 10.5.1(f)(xv) for AEMO to publish the information provided to it regarding a Facility’s status as a Network Augmentation Funding Facility has been moved to new clause 4.10A.12 as below.

4.10A.12. AEMO must publish the information provided to it under clause

4.10A.6 with respect to a Market Participant nominating that a Facility

be classified as a Network Augmentation Funding Facility, excluding any Confidential Information.

Explanatory Note

Clauses 4.11.1(a) and 4.11.1(b) are amended as the relevant requirement should be at the component level and generic to Non-Intermittent Generating Systems.

Clause 4.11.1(bA) is amended as a consequence of the deletion of the Constrained Access Entitlement regime in Appendix 11 and to re-format the remaining content of each clause.

Clause 4.11.1(g) is amended by the Miscellaneous Amendments No. 1 (Schedules A and E). As clause 4.11.1(g) is amended to reflect the amendments contained in the Miscellaneous Amendments No. 1 (Schedule E), as those amending rules (made by the Minister at the date this companion version was prepared) will be commenced last (at a date specified in a notice to be published by the Minister), please refer to the Miscellaneous Amendments No. 1 (Schedule A) to see the changes to clause ### 4.11.1(g) that will commence on 1 July 2021 and apply until the Miscellaneous Amendments No. 1 (Schedule E) to 4.11.1(g) commences.

Clause 4.11.1(h) is also amended by the Amending Rules contained in the Rule Change Panel's Final Report for Rule Change Proposal RC_2014_03 (Administrative Improvements to the Outage Process). Further amendments may be made to reflect the intent that clause 4.11.1(h) refers to the WEM Procedure in clause 3.21.17 until clause 4.9.10 commences on 1 November 2021.

Clause 4.11.1(j) is amended to make it clear that the Certified Reserve Capacity for a DSP must only be in respect of Associated Loads at the same TNI.

Clause 4.11.1 is also modified to remove the undefined term 'embedded load', and reference defined terms.

4.11. Setting Certified Reserve Capacity

4.11.1. Subject to clause 4.11.12, AEMO must apply the following

principles in assigning a quantity of Certified Reserve Capacity to a Facility or relevant component of a Facility for the Reserve Capacity Cycle for which an application for Certified Reserve Capacity has been submitted in accordance with section 4.10:

$a$ the Certified Reserve Capacity for a Non-Intermittent Generating System for a Reserve Capacity Cycle must not exceed AEMO’s reasonable expectation of the amount of capacity likely to be available, after netting off capacity required to serve Loads, for Peak Trading Intervals on Business Days from the start of the Trading Day starting on 1 October of Year 3 of the Reserve Capacity Cycle to the end of the Trading Day starting on 31 July of Year 4 of the Reserve Capacity Cycle, assuming an ambient temperature of 41 degrees Celsius;

$b$ the Certified Reserve Capacity for a Non-Intermittent Generating System must not exceed the capacity specified in clause 4.10.1(e)(ii);

(bA) where the Facility contains an Energy Producing System, the Certified Reserve Capacity must not exceed the Declared Sent Out Capacity for the Facility notified to AEMO under clause 4.10.1(bA)(iii);

(bB) where two or more Facilities share a Declared Sent Out Capacity, the total quantity of Certified Reserve Capacity assigned to those Facilities must not exceed the Declared Sent Out Capacity;

Explanatory Note

Clauses 4.11.1(bC), (bD) and (bE) clarify the basis on which the Certified Reserve Capacity will be determined for Facilities comprising only of, or containing, an Electric Storage Resource

(bC) for a Scheduled Facility containing an Electric Storage Resource or Semi-Scheduled Facility containing an Electric Storage Resource, the total quantity of Certified Reserve Capacity determined for the Electric Storage Resource must be determined by AEMO in accordance with clause

4.11.3;

(bD) for a Non-Scheduled Facility comprising only an Electric Storage Resource, including Small Aggregation of aggregated Electric Storage Resources, the total quantity of Certified Reserve Capacity must be:

i. determined in accordance with the Relevant Level Methodology determined in accordance with clause 4.11.2; or

ii. if the Electric Storage Resource has not been in operation for the full period of performance assessment identified in step 1(a) of the Relevant Level Methodology, determined in accordance with clause 4.11.3;

(bE) for a Non-Scheduled Facility, excluding Non-Scheduled Facilities under clause 4.11.1(bD)(ii), the total quantity of Certified Reserve Capacity assigned to the Facility must be determined in accordance with the Relevant Level Methodology, determined in accordance with clause

4.11.2;

$c$ AEMO must not assign Certified Reserve Capacity to a Facility for a Reserve Capacity Cycle if:

i. [Blank]

ii. the Facility is not operational or is not scheduled to commence operation for the first time so as to meet its Reserve Capacity Obligations by 1 October of Year 3 of the Reserve Capacity Cycle;

iii. the Facility will cease operation permanently, and hence cease to meet Reserve Capacity Obligations, from a time earlier than 1 August of Year 4 of the Reserve Capacity Cycle;

iv. the Facility already has Capacity Credits assigned to it under clause 4.28C for the Reserve Capacity Cycle; or

v. [Blank]

vi. the Facility is a Demand Side Programme and it has submitted under clause 4.10.1(f)(v) a minimum notice period for dispatch under clause 7.6.15 of more than two hours.

$d$ [Blank]

$e$ [Blank]

$f$ AEMO must not assign Certified Reserve Capacity to a Facility that is not expected to be a Registered Facility by the time its Reserve Capacity Obligations for the Reserve Capacity Cycle would take effect;

$g$ [Blank]

$h$ subject to clauses 4.11.1B and 4.11.1C, AEMO may decide not to assign any Certified Reserve Capacity to a Facility, or to assign a lesser quantity of Certified Reserve Capacity to a Facility than it would otherwise assign in accordance with this clause 4.11.1, if:

i. the Facility has been in Commercial Operation for at least 36 months and has had a Forced Outage rate or a combined Planned Outage rate and Forced Outage rate greater than the applicable percentage specified in the table in clause 4.11.1D, over the preceding 36 months; or

ii. the Facility has been in Commercial Operation for less than 36 months, or is yet to commence Commercial Operation, and AEMO has cause to believe that over the first 36 months of Commercial Operation the Facility is likely to have a Forced Outage rate or a combined Planned Outage rate and Forced Outage rate greater than the applicable percentage specified in the table in clause 4.11.1D,

where the Planned Outage rate and the Forced Outage rate for a Facility for a period are calculated in accordance with the WEM Procedure specified in clause 4.9.10;

$i$ the Certified Reserve Capacity assigned to a Facility is to be expressed to a precision of 0.001 MW;

Explanatory Note

Clause 4.11.1(j) is amended to reflect the proposed changes to dispatch arrangements for Demand Side Programmes. Under the proposed arrangements, a Market Participant will be required to have curtailed the Withdrawal of its Demand Side Programme to the requested level before the start time specified in the relevant Dispatch Instruction, so an assessment of its ability to reduce its Withdrawal in a single Trading Interval is no longer needed.

Clause 4.11.1(a) is amended for drafting consistency with the amendments made to clause 4.11.1(j).

$j$ the Certified Reserve Capacity for a Demand Side Programme for a Reserve Capacity Cycle must only consist of Associated Loads at the same Transmission Node, and must not exceed AEMO’s reasonable expectation of the amount of capacity likely to be available from the Facility during the periods specified in clause 4.10.1(f)(vi), after netting off capacity required to serve Minimum Consumption for each of the Facility’s Associated Loads, from the start of the Trading Day starting on 1 October of Year 3 of the Reserve Capacity Cycle to the end of the Trading Day starting on 31 July of Year 4 of the Reserve Capacity Cycle; and

$k$ the Certified Reserve Capacity assigned to a Facility is to be, where relevant, the sum of the Certified Reserve Capacity assigned to each relevant component of a Facility.

4.11.1A. AEMO must publish the reasons for a decision made under

clause 4.11.1(h) on the WEM Website to the extent those reasons do not contain any confidential information.

4.11.1B. In making a decision under clause 4.11.1(h) or 4.11.1(j), and

without limiting the ways in which AEMO may inform itself in either case, AEMO may:

$a$ seek such additional information from the Market Participant that AEMO considers is relevant to the exercise of its discretion;

$b$ use information provided in reports related to the Facility submitted by:

i. the Market Participant specified under clause 4.27.3; and

ii. any other person under clause 4.27.6; and

$c$ consult with any person AEMO considers suitably qualified to provide an opinion or information on issues relevant to the exercise of AEMO’s discretion.

4.11.1C. In making a decision under clause 4.11.1(h), AEMO:

$a$ must be satisfied that its decision under clause 4.11.1(h) would not, on balance, be contrary to the Wholesale Market Objectives;

$b$ may:

i. consider the extent to which the Reserve Capacity that can be provided by the Facility is necessary to meet the Reserve Capacity Target;

ii. consider whether the Reserve Capacity provided by the Facility is of material importance to the SWIS, having regard to:

1. the size of the Facility;

2. the operational characteristics of the Facility;

3. the extent to which the Facility contributes to the Power System Security or Power System Reliability through fuel diversity or location; and

4. the demonstrated reliability of the Facility;

iii. assess the effectiveness of strategies undertaken by the applicant in the previous three years to reduce outages, and consider the likelihood that strategies proposed by the applicant to maximise the availability of the Facility in the relevant Reserve Capacity Cycle will be effective;

iv. consider whether a decision to not assign Certified Reserve Capacity to the Facility is likely to result in a material decrease in competition in at least one market;

v. consider any positive or negative impacts on the long term price of electricity supplied to consumers that might arise if Certified Reserve Capacity was not assigned to the Facility; and

vi. consider any other matter AEMO determines to be relevant.

4.11.1D. The relevant outage criteria to apply under clause 4.11.1(h) in

a particular Capacity Year is set out in the following table:

OUTAGE RATE LIMIT TABLE

For AEMO decisions related to the Capacity Cycle	Forced Outage rate greater than	Combined Planned Outage rate and Forced Outage rate greater than
Prior to 2015	15%	30%
2015	14%	28%
2016	13%	26%
2017	12%	24%
2018	11%	22%
2019 onwards	10%	20%

4.11.2. Where an applicant submits an application for Certified Reserve

Capacity, in accordance with clause 4.10, and AEMO is required to use the methodology described in clause 4.11.2(b) to apply to an Intermittent Generating System or a Non-Scheduled Facility (excluding where clause 4.11.1(bD)(ii) applies), AEMO:

$a$ [Blank];

(aA) [Blank]; and

$b$ subject to clause 4.11.12, must assign a quantity of Certified Reserve Capacity to the relevant Facility or relevant component of a Facility for the Reserve Capacity Cycle equal to the Relevant Level as determined in accordance with the Relevant Level Methodology, but subject to clauses 4.11.1(bA), 4.11.1(bB), 4.11.1(c), 4.11.1(f) and

4.11.1(h).

4.11.2A. Where an applicant nominates under clause 4.10.3A(c) to have

AEMO use an alternative value to that specified in clause 4.10.3A(b) AEMO:

$a$ may reject the proposed alternative value if it does not consider the reasons provided in accordance with clause 4.10.3A(d) provide sufficient evidence that an alternative value is required; and

$b$ must use the alternative value in the calculation of the Required Level if it does not reject the proposed alternative value under clause

4.11.2A(a).

Explanatory Note

Clause 4.11.3 sets out how AEMO determines the quantity of Certified Reserve Capacity to be assigned to certain Facilities comprising only of, or containing, an Electric Storage Resource.

4.11.3. The Certified Reserve Capacity for an Electric Storage Resource

for the Reserve Capacity Cycle under clause 4.11.1, for a component of a Scheduled Facility, Semi-Scheduled Facility or Non-Scheduled Facility, except where clause 4.11.1(bD)(i) applies, the quantity of Certified Reserve Capacity to be assigned is AEMO’s reasonable expectation of the Linearly Derating Capacity that each Electric Storage Resource can sustain over the Electric Storage Resource Obligation Duration after netting off capacity required to serve Loads associated with the Electric Storage Resource, from 1 October of Year 3 of the Reserve Capacity Cycle, assuming an ambient temperature of 41 degrees Celsius, based on the information provided in the application for Certified Reserve Capacity and the observed performance of the Electric Storage Resource in accordance with clause 4.25.1.

Explanatory Note

Clause 4.11.3A requires AEMO to determine, publish, and document the methodology and processes it will use to determine Electric Storage Resource Obligation Intervals.

A Market Participant for an Electric Storage Resource or a Facility containing an Electric Storage Resource will have Reserve Capacity Obligations in respect of the Electric Storage Resource in each Electric Storage Resource Obligation Interval.

A new transitional provision requires AEMO to document the WEM Procedure prior to the date in clause 4.1.4, which is when AEMO is required to publish the Request for Expression of Interest for the 2021 Reserve Capacity Cycle.

4.11.3A. AEMO must:

$a$ determine in Year 1 of a Reserve Capacity Cycle the Trading Intervals in each Trading Day that are classified as Electric Storage Resource Obligation Intervals from 1 October of Year 3 of the Reserve Capacity Cycle, and:

i. where changes are proposed to the Electric Storage Resource Obligation Intervals last published under this clause 4.11.3A(a), consult with Market Participants on the proposed changes, and publish the Electric Storage Resource Obligation Intervals on the WEM Website by 31 July of Year 1 of the Reserve Capacity Cycle; and

ii. where no changes are proposed to the Electric Storage Resource Obligation Intervals last published under this clause 4.11.3A(a), publish the Electric Storage Resource Obligation Intervals on the WEM Website (which may be published in the Statement of Opportunities Report) by the date specified in clause 4.1.8;

$b$ only amend the Trading Intervals classified as Electric Storage Resource Obligation Intervals and published in accordance with clause

4.11.3A(a) as permitted under these WEM Rules; and

$c$ document the following in a WEM Procedure:

i. the processes to be followed by AEMO for determining changes to the Trading Intervals that will be classified as Electric Storage Resource Obligation Intervals under clause 4.11.3A(a), including the processes to be followed by AEMO to comply with its obligation to consult with Market Participants;

ii. the processes to be followed by AEMO for publishing the Trading Intervals classified as Electric Storage Resource Obligation Intervals in accordance with clause 4.11.3A(a) on the WEM Website; and

iii. the circumstances, if any, that allow AEMO to determine, in accordance with clause 6.3.1 and without consultation with Market Participants, that the Trading Intervals classified as Electric Storage Resource Obligation Intervals for a specific Trading Day are not the Electric Storage Resource Obligation Intervals published by AEMO under clause 4.11.3A(a).

Explanatory Note

Clauses 4.11.3BA(a) and (b) are amended to reflect that the Required Level is determined on a component and not a Facility level.

Clause 4.11.3BA(c) is deleted and clause 4.11.3BB created to reflect that a Demand Side Programme cannot be a component of a Facility.

Clause 4.11.3BA(e) is deleted to reflect that a Non-Scheduled Facility comprising only an Electric Storage Resource is already covered under 4.11.3BA(d) – now renumbered to 4.11.3BA(c).

Clause 4.11.3BB is created to provide for the determination of the Required Level of a Demand Side Programme on a Facility level.

4.11.3B. The Required Level for a Scheduled Facility or Semi-Scheduled

Facility is the sum of each Separately Certified Component determined under clause 4.11.3BA, unless that sum exceeds the Facility's Declared Sent Out Capacity then the Required Level will be the Declared Sent Out Capacity of the Facility.

Explanatory Note

Clause 4.11.3BA(b)(i) is amended to include a relevant component of a Facility to enable an independent expert report to provide the 5% PoE for a component (e.g. Intermittent Generating System) or a Facility (e.g. Non-Scheduled Facility with an Electric Storage Resource).

Clauses 4.11.3BA(a) and (b) are amended to reflect that the Required Level is determined on a component and not a Facility level.

Clause 4.11.3BA(c) is deleted and clause 4.11.3BB created to reflect that a Demand Side Programme cannot be a component of a Facility.

Clause 4.11.3BA(e) is deleted to reflect that a Non-Scheduled Facility comprising only an Electric Storage Resource is already covered under 4.11.3BA(d) – now renumbered to 4.11.3BA(c).

New clause 4.11.3BA, which will be inserted in the WEM Rules by the Wholesale Electricity Market Amendment (Tranche 5 Amendments) Rules 2021 (Schedule I, paragraph 26.4), is further amended (i.e. clause ### 4.11.3BA(c) specifically) to reflect the proposed aggregation of clauses ### 4.10.1(fA), 4.10.1(fB) and 4.10.1(fC) into a single clause ### 4.10.1(fA).

4.11.3BA. The Required Level for a Separately Certified Component of a

Scheduled Facility or Semi-Scheduled Facility is:

$a$ for a Non-Intermittent Generating System assigned Certified Reserve Capacity under clause 4.11.1(a), calculated by AEMO using the Capacity Credits associated with the Non-Intermittent Generating System and temperature dependence information submitted to AEMO under clause

4.10.1(e)(i) or provided in Standing Data (where available) and

converted to a sent out basis to 41 degrees Celsius;

$b$ for an Intermittent Generating System assigned Certified Reserve Capacity under clause 4.11.2(b), either:

i. the value, expressed in MW as a sent out value, that equals the five percent probability of exceedance of expected generation output for the component of the Facility that is an Intermittent Generating System, submitted to AEMO in the report described in clause 4.10.3A(b);or

ii. the proposed alternative value for the component of the Facility that is an Intermittent Generating System, expressed in MW as a sent out value, provided in the report described in clause 4.10.3A(c), where AEMO has accepted the proposed alternative value under clause 4.11.2A,

and adjusted for Capacity Credits associated with the Intermittent Generating System;

$c$ for an Electric Storage Resource assigned Certified Reserve Capacity under clause 4.11.3 calculated by AEMO using the Capacity Credits associated with the Electric Storage Resource and temperature dependence information submitted to AEMO under clause 4.10.1(fA) or provided in Standing Data (where available) and converted to a sent out basis to 41 degrees Celsius.

4.11.3BB. The Required Level for a Demand Side Programme is calculated

by AEMO using the Relevant Demand for the Facility minus the Capacity Credits assigned to the Facility.

4.11.3BC. Except where clause 4.11.3BD applies to the Facility, the

Required Level for a Non-Scheduled Facility assigned Certified Reserve Capacity under clause 4.11.2(b) is either:

$a$ the value, expressed in MW as a sent out value, that equals the five percent probability of exceedance of expected generation output for the Facility, specified in the report described in clause 4.10.3A(b);or

$b$ the proposed alternative value for the Facility, expressed in MW as a sent out value, specified in the report described in clause

4.10.3A(c), where AEMO must use the proposed alternative value in

accordance with clause 4.11.2A,

and adjusted for Capacity Credits assigned to the Facility.

4.11.3BD. The Required Level for a Non-Scheduled Facility, assigned

Certified Reserve Capacity under 4.11.1(bD), is calculated by AEMO using the Capacity Credits assigned to the Facility and temperature dependence information submitted to AEMO under clauses 4.10.1(fD) or provided in Standing Data (where available) and converted to a sent out basis to 41 degrees Celsius.

Explanatory Note:

Clause 4.11.3C is amended to reflect that the next review of the Relevent Level Methodology by the ERA is to be postponed until after the completion of the Coordinator’s RCM Review.

4.11.3C. For each five year period, beginning with the period commencing

on 1 January 2025, the Economic Regulation Authority must, by 1 April of the first year of that period, conduct a review of the Relevant Level Methodology. In conducting the review, the Economic Regulation Authority must:

$a$ examine the effectiveness of the Relevant Level Methodology in meeting the Wholesale Market Objectives; and

$b$ determine the values of the parameters K and U in step 17 of the Relevant Level Methodology to be applied for each of the three Reserve Capacity Cycles commencing in the period,

and the Economic Regulation Authority may examine any other matters that the Economic Regulation Authority considers to be relevant.

4.11.3D. In conducting a review under clause 4.11.3C, the Economic

Regulation Authority must publish a draft report and invite submissions from Rule Participants and any other stakeholders the Economic Regulation Authority considers should be consulted.

4.11.3E. At the conclusion of a review under clause 4.11.3C, the

Economic Regulation Authority must publish a final report containing:

$a$ details of the Economic Regulation Authority’s review of the Relevant Level Methodology;

$b$ a summary of the submissions received during the consultation period;

$c$ the Economic Regulation Authority’s response to any issues raised in those submissions;

$d$ the values of the parameters K and U determined under clause

4.11.3C; and

$e$ any recommended amendments to the Relevant Level Methodology which the Economic Regulation Authority intends to progress as a Rule Change Proposal.

4.11.4. Subject to clause 4.11.12, when assigning Certified Reserve

Capacity, AEMO must assign an Availability Class to apply to that Certified Reserve Capacity as follows:

$a$ Availability Class 1 where either:

i. the Facility contains an Intermittent Generating System or Non‑Intermittent Generating System; or

ii. AEMO reasonably expects the Facility to be available to be dispatched for all Trading Intervals in a Capacity Year, allowing for Outages and any restrictions on the availability specified by the applicant under clause 4.10.1(g); or

$b$ Availability Class 2 otherwise.

4.11.5. In assigning Certified Reserve Capacity to a Facility, AEMO may:

$a$ require Network Operators to confirm that the data and information related to clause 4.10.1(bA) provided to AEMO by or on behalf of an applicant for Certified Reserve Capacity is complete, accurate and up to date; and

$b$ request that a Network Operator provide AEMO within a reasonable timeframe with any other information held by the Network Operator that the Network Operator reasonably considers is relevant to the application,

and Network Operators must use their best endeavours to cooperate with such requests and provide the information requested within the timeframe specified by AEMO in the request.

4.11.6. AEMO must accredit not less than two independent experts at any

time to prepare reports on the estimated Reserve Capacity of an Intermittent Generating System or a Non-Scheduled Facility (excluding where clause 4.11.1(bD)(ii) applies) that are yet to commence operation, at the expense of the applicant. AEMO:

$a$ must publish the contact details of these accredited independent experts on the WEM Website;

$b$ must ensure that any expert it accredits is familiar with the meaning of the value to be estimated; and

$c$ can remove accreditation of an expert at any time, but must allow the expert to complete any work in progress as an accredited expert at the time accreditation is removed.

4.11.7. [Blank]

4.11.8. [Blank]

4.11.9. [Blank]

4.11.10. Upon the receipt of advice provided in accordance with clause

4.10.4 for a Facility that has already been assigned Capacity Credits

for the relevant Capacity Year, AEMO must review the information provided and decide whether it is necessary for AEMO to reassess the assignment of Certified Reserve Capacity to the Facility.

4.11.10A. Where AEMO decides under clause 4.11.10 that it is necessary

for AEMO to reassess the assignment of Certified Reserve Capacity to a Facility because the level assigned may have been too high, AEMO must:

$a$ if information provided to AEMO under clause 4.10.4 would have resulted in AEMO assigning a lower, non-zero level of Certified Reserve Capacity to the Facility:

i. reduce the Capacity Credits assigned to that Facility accordingly; and

ii. advise the Market Participant within 90 days of receiving the submission under clause 4.10.4; or

$b$ otherwise, do nothing.

4.11.11. Where AEMO reassesses the amount of Certified Reserve Capacity

assigned to a Facility under clauses 4.11.10 and 4.11.10A based on information provided to AEMO under clause 4.10.4 the Market Participant will pay a Reassessment Fee to cover the cost of processing the reassessment.

Explanatory Note

Clause 4.11.12 is amended to remove the reference to the ‘Balancing Facility Requirements’, and replace it with a reference to the Market Participant being required to provide evidence of how its Facility will be able to receive, confirm and respond to Dispatch Instructions in accordance with the WEM Procedures: Communications and Control Systems, and Dispatch.

Clause 4.11.12 is further amended to reflect that dispatch capability should apply to a relevant Facility Class rather than Facility size.

4.11.12. AEMO must not assign Certified Reserve Capacity to a Scheduled

Facility, Semi-Scheduled Facility or Demand Side Programme unless AEMO is satisfied the Facility is likely to be able to receive, confirm, and implement Dispatch Instructions from AEMO in accordance with the WEM Procedures referred to in clauses 2.35.4 and 7.6.18.

Explanatory Note

The amendments to clause 4.12.1(a) simplify the drafting and ensure that it is consistent with the Net STEM Shortfall calculations specified in clauses 4.26.2AA to 4.26.2AH.

The amended clause requires a Market Participant to provide for each Trading Interval a quantity of capacity through the Bilateral Submission and STEM Submission processes that is greater than or equal to the ‘required’ quantity for that Market Participant and Trading Interval.

The quantity of capacity deemed to have been provided is determined using the CAPASTEM(p,t) calculation in clause 4.26.2AE, which incorporates:

the Market Participant’s Net Contract Position;
STEM Offers that were not scheduled in the STEM Auction; and
STEM Bids that were scheduled in the STEM Auction.

The required quantity is determined using the STEMREQ(p,t) calculation in clause 4.26.2AB. STEMREQ(p,t) is based on the STEM Reserve Capacity Obligation Quantities of the Market Participant’s Scheduled Facilities and Semi-Scheduled Facilities, with an adjustment to account for capacity that was available in real time but was expected by AEMO to be subject to a Forced Outage when AEMO estimated Capacity Adjusted Forced Outage Quantities for the Trading Day on the relevant Scheduling Day.

Note that clause 4.12.1 as set out in the Tranche 5 Amendments (Schedule I, paragraph 27.1) supersedes the amendments to clauses ### 4.12.1(a)-(c) as set out in the Tranches 2 and 3 Amendments (Schedule C, paragraph 87.1). However, the Tranche 5 Amendments contains an error in that the instruction deletes clause 4.12.1 but only replaces it with subclauses (a) and (b) and not also with the opening paragraph.

To achieve the intended outcome, the Tranches 2 and 3 Amendments and Tranche 5 Amendments to clause 4.12.1 will not be commenced. Instead the Tranche 6 Amendments will replace the existing clause 4.12.1.

4.12. Setting Reserve Capacity Obligations

4.12.1. The Reserve Capacity Obligations for each Market Participant

holding Capacity Credits are as follows:

$a$ a Market Participant must ensure that for each Trading Interval, the MW quantity of capacity provided through the Bilateral Submission and STEM Submission processes, as determined for the Market Participant under clause 4.26.2AE, is greater than or equal to the MW quantity determined for the Market Participant under clause 4.26.2AB; and

$b$ a Market Participant must make the capacity associated with the Capacity Credits which are assigned to its Registered Facility for each Dispatch Interval available for dispatch by AEMO in accordance with Chapter 7, up to the Reserve Capacity Obligation Quantity for the Registered Facility for the relevant Dispatch Interval.

Explanatory Note

Clause 4.12.2 has been amended to:

update the list of sections that contain outage obligations in clause 4.12.2(a); and
remove the reference to ‘inspections’ in clause 4.12.2(b), because inspections are not conducted under section 4.25.

4.12.2. A Market Participant holding Capacity Credits must also comply

with the following obligations:

$a$ the Market Participant must comply with the Outage planning obligations specified in sections 3.18 to 3.21;

$b$ the Market Participant must submit to tests of availability of capacity conducted in accordance with section 4.25; and

$c$ the Market Participant must comply with Reserve Capacity performance monitoring obligations in accordance with section 4.27.

Explanatory Note

Clause 4.12.3 has been deleted because the rules for determining Reserve Capacity Obligation Quantities are covered in other clauses.

Clause 4.12.7 and its associated footnote have been moved to clause ### 4.12.3 to improve the logical order of the section. The condition in the clause has been updated to refer to Capacity Credits instead of Certified Reserve Capacity, because a Facility may be assigned Certified Reserve Capacity but not Capacity Credits, in which case the Facility will not be subject to Reserve Capacity Obligations.

4.12.3. If a Facility assigned Capacity Credits is not a Registered

Facility for any time period during which Reserve Capacity Obligations apply for the Facility, then the Market Participant which holds the Capacity Credits assigned to the Facility will be deemed to have failed to satisfy the Reserve Capacity Obligations for the Facility during that time period.[2]

Explanatory Note

Clause 4.12.4 has been redrafted to improve clarity and remove unnecessary complexity. The concept of an ‘initial’ Reserve Capacity Obligation Quantity has been removed. Instead the clause sets out AEMO’s requirement to determine the Reserve Capacity Obligation Quantity for each Registered Facility for each Dispatch Interval.

For a Scheduled Facility or Semi-Scheduled Facility, the Reserve Capacity Obligation Quantity is defined as the sum of the Reserve Capacity Obligation Quantities determined under clause 4.12.5 for each of its Separately Certified Components.

Clause 4.12.4 is further amended to update the cross-references in clause 4.12.4(c) and remove the redundant reference to Registered Facilities.

4.12.4. AEMO must determine the Reserve Capacity Obligation Quantity for

each Scheduled Facility, Semi-Scheduled Facility, Non‑Scheduled Facility or Demand Side Programme for each Dispatch Interval as follows:

$a$ the Reserve Capacity Obligation Quantity for a Registered Facility is equal to zero for each Dispatch Interval in which no Capacity Credits are assigned to the Registered Facility;

$b$ the Reserve Capacity Obligation Quantity for a Non-Scheduled Facility is equal to zero for each Dispatch Interval;

$c$ the Reserve Capacity Obligation Quantity for a Demand Side Programme:

i. for a Dispatch Interval that falls within a period specified for the Demand Side Programme under clause 4.10.1(f)(vi), is equal to the number of Capacity Credits assigned to the Demand Side Programme for the Dispatch Interval, except where clauses 4.12.4(c)(iii) or 4.12.4(c)(iv) apply;

ii. for a Dispatch Interval that falls outside the periods specified for the Demand Side Programme under clause 4.10.1(f)(vi), is equal to zero;

iii. will equal zero for the remainder of a Capacity Year once the capacity of the Demand Side Programme has been dispatched under clause 7.6.5A for the number of hours per Capacity Year that is specified for the Demand Side Programme under clause 4.10.1(f)(ii); and

iv. will equal zero for the remainder of a Trading Day once the capacity of the Demand Side Programme has been dispatched under clause 7.6.5A for the number of hours per Trading Day that is specified for the Demand Side Programme under clause 4.10.1(f)(iii); and

$d$ the Reserve Capacity Obligation Quantity for a Scheduled Facility or Semi‑Scheduled Facility which is assigned Capacity Credits for a Dispatch Interval is equal to the sum of the Reserve Capacity Obligation Quantities determined under clause 4.12.5 for each Separately Certified Component of the Registered Facility for the relevant Dispatch Interval.

Explanatory Note

New clause 4.12.5 sets out how AEMO is required to determine the Reserve Capacity Obligation Quantities of the Separately Certified Components of a Scheduled Facility or Semi-Scheduled Facility for a Dispatch Interval.

Clause 4.12.5 is further amended to remove redundant reference to “Registered Facilities”.

4.12.5. AEMO must determine the Reserve Capacity Obligation Quantity for

each Separately Certified Component of a Scheduled Facility or Semi-Scheduled Facility, for each Dispatch Interval for which the Separately Certified Component is assigned Capacity Credits, as follows:

$a$ the Reserve Capacity Obligation Quantity for an Intermittent Generating System is equal to zero for each Dispatch Interval;

$b$ subject to the exceptions specified in clauses 4.12.5(d) and

4.12.5(e), the Reserve Capacity Obligation Quantity for a

Non-Intermittent Generating System:

i. for a Dispatch Interval during a Trading Day where the maximum daily temperature at the site of the Non-Intermittent Generating System does not exceed 41 degrees Celsius, is equal to the number of Capacity Credits assigned to the Non‑Intermittent Generating System for the Dispatch Interval; and

ii. for a Dispatch Interval during a Trading Day where the maximum daily temperature at the site of the Non-Intermittent Generating System exceeds 41 degrees Celsius, is equal to:

\[\frac{\text{CC}\text{\\}\text{×}\text{\\}\text{MSOC45}\text{\\}}{\text{\\}\text{MSOC41}}\]

where:

1. CC is the number of Capacity Credits assigned to the Non‑Intermittent Generating System for the Dispatch Interval;

2. MSOC45 is 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 when it is operated normally at an ambient temperature of 45 degrees Celsius, as specified in Standing Data; and

3. MSOC41 is 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 when it is operated normally at an ambient temperature of 41 degrees Celsius, as specified in Standing Data;

$c$ subject to the exceptions specified in clauses 4.12.5(d),

4.12.5(f) and 4.12.5(g), the Reserve Capacity Obligation Quantity for an

Electric Storage Resource:

i. for a Dispatch Interval which does not fall within an Electric Storage Resource Obligation Interval, is equal to zero;

ii. for a Dispatch Interval which falls within an Electric Storage Resource Obligation Interval, during a Trading Day where the maximum daily temperature at the site of the Electric Storage Resource does not exceed 41 degrees Celsius, is equal to the number of Capacity Credits assigned to the Electric Storage Resource for the Dispatch Interval; and

iii. for a Dispatch Interval which falls within an Electric Storage Resource Obligation Interval, during a Trading Day where the maximum daily temperature at the site of the Electric Storage Resource exceeds 41 degrees Celsius, is equal to:

\[\frac{\text{CC}\text{\\}\text{×}\text{\\}\text{MSOC45}\text{\\}}{\text{\\}\text{MSOC41}}\]

where:

1. CC is the number of Capacity Credits assigned to the Electric Storage Resource for the Dispatch Interval;

2. MSOC45 is the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply to the relevant Network from the Electric Storage Resource when it is operated normally at an ambient temperature of 45 degrees Celsius, as specified in Standing Data; and

3. MSOC41 is the maximum sent out capacity, net of embedded and Parasitic Loads, that can be available for supply to the relevant Network from the Electric Storage Resource when it is operated normally at an ambient temperature of 41 degrees Celsius, as specified in Standing Data;

$d$ where a Scheduled Facility or Semi‑Scheduled Facility is subject to Commissioning Test Plan approved by AEMO in a Dispatch Interval, the Reserve Capacity Obligation Quantity for each Separately Certified Component of the Registered Facility is equal to zero for the Dispatch Interval and clauses 4.12.5(e) and 4.12.5(f) do not apply;

$e$ subject to clause 4.12.5(d), where a Separately Certified Component which is a Non-Intermittent Generating System is subject to a Planned Outage in a Dispatch Interval, the Reserve Capacity Obligation Quantity of the Separately Certified Component for the Dispatch Interval is reduced from the value determined under clause 4.12.5(b) by the Capacity Adjusted Planned Outage Quantity determined for the Separately Certified Component under clause 3.21.8;

$f$ subject to clauses 4.12.5(d) and 4.12.5(g), where a Separately Certified Component which is an Electric Storage Resource is subject to a Planned Outage in a Dispatch Interval, the Reserve Capacity Obligation Quantity of the Separately Certified Component for the Dispatch Interval is reduced from the value determined under clause 4.12.5(c) by the Capacity Adjusted Planned Outage Quantity determined for the Separately Certified Component under clause 3.21.8; and

$g$ where:

i. AEMO issues a direction under clause 7.7.5 in respect of a Registered Facility containing a Separately Certified Component which is an Electric Storage Resource; and

ii. the direction requires the Registered Facility to operate at a level higher than its Reserve Capacity Obligation Quantity in the Dispatch Interval to which the direction relates,

the Reserve Capacity Obligation Quantity for the Electric Storage Resource is reduced to zero for all Dispatch Intervals subsequent to the Dispatch Interval in which the direction is issued in the relevant Trading Day and clause 4.12.5(f) does not apply for those Dispatch Intervals.

Explanatory Note

The current clause 4.12.6 has been deleted because:

clause 4.12.6(a) is unnecessary because Reserve Capacity Obligation Quantities are based on the Capacity Credits assigned to the Facility or Separately Certified Component for the relevant Dispatch Interval, which automatically accounts for the adjustments described in the clause;
adjustments for approved Planned Outages are covered in clauses ### 4.12.5(e) and 4.12.5(f); and
adjustments for approved Commissioning Tests are covered in clause 4.12.5(d).

The replacement clause 4.12.6 specifies how the Reserve Capacity Obligation Quantity for a Registered Facility for a Trading Interval is determined from the Reserve Capacity Obligation Quantities for the Registered Facility for the Dispatch Intervals in that Trading Interval.

4.12.6. The Reserve Capacity Obligation Quantity for a Registered

Facility f for a Trading Interval t is equal to:

\[\text{RCOQ(f,t)=}\frac{\sum\_{\text{DI}\text{∈}\text{t}}^{}\text{RCOQ(f,DI)}}{\text{6}}\]

where:

$a$ DI∈t denotes all Dispatch Intervals DI in Trading Interval t; and

$b$ RCOQ(f,DI) is the Reserve Capacity Obligation Quantity determined for Registered Facility f for Dispatch Interval DI under clause 4.12.4.

Explanatory Note

Reserve Capacity Security relating to DSPs is dealt with in new section 4.13A. Other than some minor amendments, no substantive amendments were required to this section 4.13 as the definition of the "Reserve Capacity Security" is amended to exclude Demand Side Programmes.

Section heading moved to before section 4.14.

Footnote to the heading was added for consistency with footnote 2.

4.13. Reserve Capacity Security[3]

4.13.1. Where AEMO assigns Certified Reserve Capacity to a Facility

(which, for the purposes of this section 4.13, excludes a Demand Side Programme) that is yet to enter service (or re-enter service after significant maintenance or having been upgraded), the relevant Market Participant must ensure that AEMO holds the benefit of a Reserve Capacity Security that is:

$a$ in the form specified in clause 4.13.5; and

$b$ an amount determined under clause 4.13.2(a) by the date and time specified in clause 4.1.13.

4.13.1A For the purposes of this section 4.13, where an existing

Facility is undergoing significant maintenance or being upgraded the requirement to provide Reserve Capacity Security applies only to the part of the Facility either undergoing significant maintenance or being upgraded.

4.13.1B. The obligation under clause 4.13.1 to provide Reserve Capacity

Security does not apply where the Market Participant has provided Reserve Capacity Security in relation to the same Facility for a previous Reserve Capacity Cycle, unless:

$a$ the Facility is an existing Facility undergoing significant maintenance or being upgraded; or

$b$ AEMO cancelled the Capacity Credits assigned to the Facility for that previous Reserve Capacity Cycle in accordance with clause 4.20.14.

4.13.1C For the purposes of this section 4.13, a Facility includes part

of a Facility, any upgrade or significant maintenance to an existing Facility, unless otherwise stated.

4.13.2. For the purposes of this section 4.13 the amount of Reserve

Capacity Security is:

$a$ at the time and date referred to in clause 4.1.13, 25 percent of the Benchmark Reserve Capacity Price included in the Request for Expressions of Interest issued for the relevant Reserve Capacity Cycle, expressed in $/MW per year, multiplied by an amount equal to:

i. the Certified Reserve Capacity assigned to the Facility; less

ii. the total of any Certified Reserve Capacity amount specified in accordance with clause 4.14.1(d) or referred to in clause 4.14.7(c)(ii); and

$b$ at the time and date referred to in clause 4.1.21, 25 percent of the Benchmark Reserve Capacity Price included in the Request for Expressions of Interest issued for the relevant Reserve Capacity Cycle, expressed in $/MW per year, multiplied by an amount equal to the total number of Capacity Credits assigned to the Facility under clause 4.20.5A.

4.13.2A A Market Participant may apply to AEMO for a recalculation of

the amount of Reserve Capacity Security required to be held for a Facility using the formula in clause 4.13.2(b) after the time and date referred to in clause 4.1.21.

4.13.2B Within 10 Business Days after receipt of a request from a Market

Participant under clause 4.13.2A AEMO must recalculate the amount of Reserve Capacity Security required to be held by a Facility using the formula in clause 4.13.2(b). If the amount recalculated by AEMO under clause 4.13.2(b) is less than that originally calculated under clause

4.13.2(a) then AEMO must:

$a$ notify the Market Participant of the result of the calculation;

$b$ offer the Market Participant the opportunity to replace the Reserve Capacity Security in accordance with clause 4.13.2C, and

$c$ if the Market Participant provides a replacement Reserve Capacity Security in accordance with clause 4.13.2C, return any excess Reserve Capacity Security.

4.13.2C Where under clause 4.13.2B AEMO notifies a Market Participant

that excess Reserve Capacity Security is currently held, then a Market Participant may replace the existing Reserve Capacity Security with replacement Reserve Capacity Security which must:

$a$ be in the form specified in clause 4.13.5;

$b$ be an amount not less than the amount required under clause

4.13.2(b); and

$c$ become effective before AEMO returns any excess Reserve Capacity Security.

4.13.3. Where a Market Participant’s existing Reserve Capacity Security

is due to expire or cease to have effect for any other reason and after that expiration the Market Participant will continue to have an obligation to ensure AEMO holds the benefit of a Reserve Capacity Security under clause 4.13.1, then that Market Participant must ensure that AEMO holds the benefit of replacement Reserve Capacity Security that is:

$a$ in the form specified in clause 4.13.5;

$b$ an amount not less than the amount required under clause 4.13.2; and

$c$ effective when the existing Reserve Capacity Security expires or otherwise ceases to have effect.

Explanatory Note

Clause 4.13.4 is amended to remove the ambiguity regarding the circumstances that may require the Reserve Capacity Security to be replaced. Clause 4.13.8 is also amended to require those circumstances to be specified in a WEM Procedure.

4.13.4. Where a Market Participant’s Reserve Capacity Security is

affected by any of the circumstances specified in the WEM Procedure referred to in clause 4.13.8 that may require replacement Reserve Capacity Security, then the Market Participant must ensure that AEMO holds the benefit of replacement Reserve Capacity Security that is:

$a$ in the form specified in clause 4.13.5;

$b$ an amount not less than the level required under clause 4.13.2; and

$c$ effective before the end of the next Business Day or within any longer period approved in writing by AEMO after the Market Participant first becomes aware of the relevant change in circumstance (whether by reason of the Market Participant’s own knowledge or a notification by AEMO).

4.13.5. The Reserve Capacity Security for a Market Participant must be:

$a$ an obligation in writing that:

i. is from a Security Provider;

ii. is a guarantee or bank undertaking in a form prescribed by AEMO;

iii. is duly executed by the Security Provider and delivered unconditionally to AEMO;

iv. constitutes valid and binding unsubordinated obligations of the Security Provider to pay to AEMO amounts in accordance with its terms which relate to the relevant Market Participant's obligations under the WEM Rules to pay compensation under clause 4.13.11; and

v. permits drawings or claims by AEMO up to a stated amount; or

$b$ if AEMO in its discretion considers it an acceptable alternative in the circumstances to the obligation under clause 4.13.5(a), a Security Deposit.

4.13.6. Where Reserve Capacity Security is provided as a Security

Deposit in accordance with clause 4.13.5(b), it will accrue interest daily at the AEMO Deposit Rate, and AEMO must pay the Market Participant the interest accumulated at the end of each calendar month less any liabilities and expenses incurred by AEMO, including bank fees and charges.

4.13.7. [Blank]

Explanatory Note

Clause 4.13.8 is amended as a consequence of the amendment to the Glossary (Chapter 11) to add a definition for “Security Deposit”.

Clause 4.13.8 is also amended to require the WEM Procedure to specify the circumstances when Reserve Capacity Security is required to be replaced for the purposes of clause 4.13.4.

4.13.8. AEMO must develop a WEM Procedure dealing with:

$a$ determining Reserve Capacity Security;

$b$ assessing persons against the Acceptable Credit Criteria;

$c$ Reserve Capacity Security arrangements, including:

i. the form of acceptable guarantees and bank undertakings;

ii. where and how it will hold Security Deposits and how the costs and fees of holding Security Deposits will be met;

iiA. the circumstances that may require Reserve Capacity Security to be replaced for the purposes of clause 4.13.4; and

iii. the application of monies drawn from Reserve Capacity Security in respect of amounts payable by the relevant Market Participant to AEMO under clause 4.13.11A; and

$d$ other matters relating to section 4.13.

Explanatory Note

Clause 4.13.9(b) is amended as a consequence of the deletion of the Reserve Capacity Auction and to remove the reference to the setting of Reserve Capacity Obligation Quantities, because Certified Reserve Capacity is not used to set these quantities.

4.13.9. If a Market Participant does not comply with clause 4.13.1 in

full by the date and time specified in clause 4.1.13 for the Reserve Capacity Cycle to which the certification relates, the Certified Reserve Capacity assigned to that Facility will lapse for the purposes of these WEM Rules.

Explanatory Note

Clause 4.13.10 is amended to resolve inconsistencies with clause ### 4.13.2 under which Reserve Capacity Security is provided on a Facility level and should therefore be returned based on Facility performance.

AEMO will be unable to assess if a 'component' has met its Required Level, therefore, clause 4.13.10 is further amended to remove the references to 'component of a Facility'.

4.13.10. If a Market Participant that provides Reserve Capacity Security

in respect of a Facility:

$a$ either:

i. operates the Facility at a level which is at least equivalent to its Required Level, adjusted to 90 percent of the level of Capacity Credits specified in clause 4.20.5A, in at least two Trading Intervals before the end of the relevant Capacity Year; or

ii. provides AEMO with a report under clause 4.13.10C, which specifies that the Facility can operate at a level which is at least equivalent to its Required Level, adjusted to 90 percent of the level of Capacity Credits specified in clause 4.20.5A; and

$b$ is considered by AEMO to be in Commercial Operation,

then AEMO will return the Reserve Capacity Security to the Market Participant as soon as practicable after the end of the relevant Capacity Year and in any event by 30 November of Year 4 of the relevant Reserve Capacity Cycle.

4.13.10A A Market Participant may request AEMO to determine that a

Facility is in Commercial Operation for the purposes of Chapter 4 of these WEM Rules.

4.13.10B. On receipt of a request made under clause 4.13.10A AEMO must

determine, within 20 Business Days, whether the Facility is in Commercial Operation. In making each such determination AEMO:

$a$ must have regard to the following, if applicable:

i. whether the Facility has completed an approved Commissioning Test under clause 3.21A and subsequently produced energy for at least two Trading Intervals;

ii. any formal advice received from the Market Participant that it has completed an approved Commissioning Test under clause 3.21A and is commercially operational; and

iii. in accordance with clause 2.29.12, whether the Facility has installed Facility Sub-Metering; and

$b$ may have regard to any additional information AEMO considers relevant.

Explanatory Note

Clause 4.13.10C is amended to resolve inconsistencies with clause ### 4.13.2 under which Reserve Capacity Security is provided on a Facility level and should therefore be returned based on Facility performance.

AEMO will be unable to assess if a 'component' has met its Required Level, therefore, clause 4.13.10C is further amended to remove the references to 'component of a Facility'.

4.13.10C. For a Facility, or component of a Facility, assigned a

quantity of Certified Reserve Capacity under clause 4.11.2(b), a Market Participant may provide AEMO with a report, in accordance with the relevant WEM Procedure, prepared by an independent expert accredited by AEMO, before the end of the relevant Capacity Year. The report must specify the independent expert’s best estimate of the level to which the Facility can operate, expressed in MW as a sent out value, at the time the report is prepared.

4.13.11. If a Market Participant that provides a Reserve Capacity

Security in respect of a Facility fails to operate that Facility in accordance with clauses 4.13.10(a) and (b) before the end of the relevant Capacity Year then the Market Participant must pay to AEMO, as compensation to the market, an amount equal to the Reserve Capacity Security amount for that Facility as soon as practicable after the end of the relevant Capacity Year and in any event by 30 November of Year 4 of the relevant Reserve Capacity Cycle.

4.13.11A The payment obligation under clause 4.13.11 may be satisfied by

AEMO drawing upon the Reserve Capacity Security for the Facility, and applying the amount claimed (after meeting AEMO’s costs associated with doing so) so as to:

$a$ firstly, offset the cost of funding Supplementary Capacity Contracts for any capacity shortage stemming entirely or in part from the Facility not being available; and

$b$ secondly, once all costs to which clause 4.13.11A(a) refers are covered, make a rebate payment to Market Participants in proportion to their Individual Reserve Capacity Requirements during the Trading Month in accordance with Chapter 9.

4.13.12. If the Reserve Capacity Security drawn upon under clause 4.13

is a Security Deposit, then the Market Participant forfeits the amount of the Security Deposit.

4.13.13 A Market Participant may apply to AEMO for the release of any

Reserve Capacity Security held by AEMO, at any time prior to the end of the relevant Capacity Year, if the Reserve Capacity Security relates to a Facility that:

$a$ has operated at a level equivalent to its Required Level, adjusted to 100 percent of the level of Capacity Credits specified in clause

4.20.5A, in at least two Trading Intervals prior to the end of the

relevant Capacity Year; and

$b$ is considered by AEMO to be in Commercial Operation.

4.13.14 Where AEMO receives an application made under clause 4.13.13 or

clause 4.28C.12 it must, within 10 Business Days:

$a$ determine whether the need to maintain the Reserve Capacity Security has ceased;

$b$ notify the Market Participant of its determination;

$c$ if the Reserve Capacity Security is a Security Deposit that is no longer required to be held, return the Security Deposit (plus interest earned); and

$d$ if the Reserve Capacity Security is not a Security Deposit and is no longer required to be held, notify the provider that AEMO relinquishes any rights to draw on the Reserve Capacity Security.

Explanatory Note

Section 4.13A deals with Reserve Capacity Security for DSPs (DSM Reserve Capacity Security). This stand-alone approach is due to the new requirement that, subject to limited exceptions, DSM Reserve Capacity is required to be held by AEMO for each Reserve Capacity Cycle in which AEMO assigns Certified Reserve Capacity to the Demand Side Programme.

AEMO will have a transitional period to document the process for assessing a request for the return of DSM Reserve Capacity Security in accordance with clause 4.13A.23.

Clauses 4.13A.15 and 4.13A.16 are Protected Provisions (consistent with the Protected Provisions for Reserve Capacity Security).

4.13A. DSM Reserve Capacity Security

4.13A.1. Where AEMO assigns Certified Reserve Capacity to a Demand Side

Programme, the relevant Market Participant must ensure that AEMO holds the benefit of DSM Reserve Capacity Security that is:

$a$ where:

i. clause 4.1.13 applies, for an amount determined under clause

4.13A.2(a) by the date and time referred to in clause 4.1.13; or

ii. clause 4.1.21 applies, for an amount determined under clause

4.13A.2(b) by the date and time referred to in clause 4.1.21; and

$b$ in the form specified in clause 4.13A.6.

4.13A.2. For the purposes of this section 4.13A, the amount of DSM

Reserve Capacity Security is:

$a$ 25 percent of the Benchmark Reserve Capacity Price included in the Request for Expressions of Interest issued for the relevant Reserve Capacity Cycle, expressed in $/MW per year, multiplied by an amount equal to:

i. the Certified Reserve Capacity assigned to the Demand Side Programme; less

ii. the total of any Certified Reserve Capacity amount specified in accordance with clause 4.14.1(d) or referred to in clause 4.14.7(c)(ii); or

$b$ 25 percent of the Benchmark Reserve Capacity Price included in the Request for Expressions of Interest issued for the relevant Reserve Capacity Cycle, expressed in $/MW per year, multiplied by an amount equal to the total number of Capacity Credits assigned to the Demand Side Programme under clause 4.20.5A.

4.13A.3. Where:

$a$ AEMO holds the benefit of a DSM Reserve Capacity Security in accordance with this section 4.13A in respect of a Demand Side Programme for a Reserve Capacity Cycle; and

$b$ AEMO assigns Certified Reserve Capacity to the same Demand Side Programme for a subsequent Reserve Capacity Cycle,

then the DSM Reserve Capacity Security for the previous Reserve Capacity Cycle will be deemed to satisfy the requirement in clause 4.13A.1 for AEMO to have the benefit of DSM Reserve Capacity Security for the subsequent Reserve Capacity Cycle if:

$c$ the amount of the DSM Reserve Capacity Security complies with clause 4.13A.4; and

$d$ the DSM Reserve Capacity Security remains in force at all relevant times for the purposes of this section 4.13A.

4.13A.4. Subject to clause 4.13A.5, where a Market Participant is

required to ensure that AEMO holds the benefit of DSM Reserve Capacity Security for more than one Reserve Capacity Cycle, the total amount of the DSM Reserve Capacity Security for all of those Reserve Capacity Cycles in aggregate is the highest amount determined under clause

4.13A.1.

4.13A.5. The amount determined under clause 4.13A.4 does not include

Reserve Capacity Cycles for which the Demand Side Programme does not have any Reserve Capacity Obligations.

4.13A.6. The DSM Reserve Capacity Security for a Demand Side Programme

must be:

$a$ an obligation in writing that:

i. is from a Security Provider;

ii. is a guarantee or bank undertaking in a form prescribed by AEMO;

iii. is duly executed by the Security Provider and delivered unconditionally to AEMO;

iv. constitutes valid and binding unsubordinated obligations of the Security Provider to pay to AEMO amounts in accordance with its terms which relate to the relevant Market Participant’s obligations under the WEM Rules to pay compensation under this section 4.13A; and

v. permits drawings or claims by AEMO up to a stated amount; or

$b$ if AEMO in its discretion considers it an acceptable alternative in the circumstances to the obligation under clause 4.13A.6(a), a Security Deposit.

4.13A.7. If, at any time, and for whatever reason, the amount of the DSM

Reserve Capacity Security is less than the amount determined in accordance with clauses 4.13A.1 or 4.13A.4, as applicable, the Market Participant must immediately:

$a$ in the case of a DSM Reserve Capacity Security in the form specified in clause 4.13A.6(a):

i. replace the DSM Reserve Capacity Security for the amount determined in accordance with clauses 4.13A.1 or 4.13A.4, as applicable; or

ii. provide a further DSM Reserve Capacity Security for the difference between the amount of the DSM Reserve Capacity Security and the amount determined in accordance with clauses 4.13A.1 or 4.13A.4, as applicable,

and, in both cases, the DSM Reserve Capacity Security must comply with clause 4.13A.6(a); or

$b$ in the case of a Security Deposit, increase the amount of the Security Deposit to the amount determined in accordance with clauses

4.13A.1 or 4.13A.4, as applicable, and do all other things AEMO may

require, including signing any deeds or other documents, to ensure AEMO has the benefit of the increase in the amount of the Security Deposit.

4.13A.8. In respect of a Reserve Capacity Cycle, after the time and date

referred to in clause 4.1.23, a Market Participant may apply to AEMO for a recalculation of the amount of DSM Reserve Capacity Security required to be held for a Demand Side Programme under clauses 4.13A.1 or 4.13A.4, as applicable.

4.13A.9. Within ten Business Days after receipt of a request from a

Market Participant under clause 4.13A.8, AEMO must recalculate the amount of DSM Reserve Capacity Security required to be held for a Demand Side Programme under clauses 4.13A.1 or 4.13A.4, as applicable. If the amount recalculated by AEMO under clauses 4.13A.1 or 4.13A.4, as applicable, is less than that previously calculated under clauses

4.13A.1 or 4.13A.4, as applicable, then AEMO must:

$a$ notify the Market Participant of the result of the calculation;

$b$ offer the Market Participant the opportunity to replace the DSM Reserve Capacity Security in accordance with clause 4.13A.10, and

$c$ if the Market Participant provides a replacement DSM Reserve Capacity Security in accordance with clause 4.13A.10, return any excess DSM Reserve Capacity Security.

4.13A.10. Where under clause 4.13A.9 AEMO notifies a Market Participant

that excess DSM Reserve Capacity Security is currently held, then a Market Participant may replace the existing DSM Reserve Capacity Security with replacement DSM Reserve Capacity Security which must:

$a$ be in the form specified in clause 4.13A.6;

$b$ be an amount not less than the amount required under clauses

4.13A.1 or 4.13A.4, as applicable; and

$c$ become effective before AEMO returns any excess DSM Reserve Capacity Security.

4.13A.11. Where a Market Participant’s existing DSM Reserve Capacity

Security is due to expire or cease to have effect for any reason and after that expiration the Market Participant will continue to have an obligation to ensure AEMO holds the benefit of DSM Reserve Capacity Security under clause 4.13A.1, then the Market Participant must ensure that AEMO holds the benefit of replacement DSM Reserve Capacity Security that is:

$a$ in the form specified in clause 4.13A.6;

$b$ an amount not less than the amount required under clauses 4.13A.1 or 4.13A.4, as applicable; and

$c$ effective when the existing DSM Reserve Capacity Security expires or otherwise ceases to have effect.

4.13A.12. Where a Market Participant’s DSM Reserve Capacity Security is

affected by any of the circumstances specified in the WEM Procedure referred to in clause 4.13A.23 that may require replacement DSM Reserve Capacity Security, then the Market Participant must ensure that AEMO holds the benefit of replacement DSM Reserve Capacity Security that is:

$a$ in the form specified in clause 4.13A.6;

$b$ an amount not less than the level required under clauses 4.13A.1 or 4.13A.4, as applicable; and

$c$ effective before the end of the next Business Day or within any longer period approved in writing by AEMO after the Market Participant first becomes aware of the relevant change in circumstance (whether by reason of the Market Participant’s own knowledge or a notification by AEMO).

4.13A.13. Where DSM Reserve Capacity Security is provided as a Security

Deposit in accordance with clause 4.13A.6(b), it will accrue interest daily at the AEMO Deposit Rate, and AEMO must pay the Market Participant the interest accumulated at the end of each calendar month less any liabilities and expenses incurred by AEMO, including bank fees and charges.

4.13A.14. If a Market Participant does not comply with clause 4.13A.1 in

full by the date and time specified in clause 4.1.13 for the Reserve Capacity Cycle to which the certification relates, the Certified Reserve Capacity assigned to that Demand Side Programme will lapse for the purposes of these WEM Rules.

4.13A.15. If a Market Participant that provides DSM Reserve Capacity

Security in respect of a Demand Side Programme fails to reduce the consumption of the Associated Loads for that Demand Side Programme to a level which is at least equivalent to its Required Level, adjusted to 90 percent of the level of Capacity Credits specified in clause 4.20.5A, in at least two Trading Intervals before the end of the relevant Capacity Year, then the Market Participant must pay to AEMO, as compensation to the market, an amount equal to the DSM Reserve Capacity Security amount for that Demand Side Programme for that Capacity Year as soon as practicable after the end of the relevant Capacity Year and in any event by 30 November of Year 4 of the relevant Reserve Capacity Cycle.

4.13A.16. The payment obligation under clause 4.13A.15 may be satisfied

by AEMO drawing upon the DSM Reserve Capacity Security for the Demand Side Programme, and applying the amount claimed (after meeting AEMO’s costs associated with doing so) so as to:

$a$ firstly, offset the cost of funding Supplementary Capacity Contracts for any capacity shortage stemming entirely or in part from the Demand Side Programme not being available; and

$b$ secondly, once all costs to which clause 4.13A.16(a) refers are covered, make a rebate payment to Market Participants in proportion to their Individual Reserve Capacity Requirements during the relevant Trading Day in accordance with Chapter 9.

4.13A.17. If the DSM Reserve Capacity Security drawn upon under clause

4.13A.16 is a Security Deposit, then the Market Participant forfeits the

amount of the Security Deposit for the applicable Capacity Year.

4.13A.18. A Market Participant may:

$a$ where AEMO has the benefit of DSM Reserve Capacity Security in accordance with this section 4.13A, request that the DSM Reserve Capacity Security be released; or

$b$ where the Market Participant is required to provide DSM Reserve Capacity Security in accordance with this section 4.13A, request that the requirement for DSM Reserve Capacity Security is waived.

4.13A.19. Where AEMO receives a request under clause 4.13A.18 it must,

within ten Business Days:

$a$ having regard to the matters in clause 4.13A.20, determine whether AEMO will release the DSM Reserve Capacity Security or waive the requirement for DSM Reserve Capacity Security;

$b$ notify the Market Participant of its determination;

$c$ if the DSM Reserve Capacity Security is a Security Deposit that is to be released, return the Security Deposit (plus interest earned); and

$d$ if the DSM Reserve Capacity Security is not a Security Deposit and is to be released, notify the Security Provider that AEMO relinquishes any rights to draw on the DSM Reserve Capacity Security.

4.13A.20. In making a determination under clause 4.13A.19, AEMO must

have regard to the following matters:

$a$ the size and type of the Loads associated with the Demand Side Programme;

$b$ the historical performance of the Demand Side Programme, including the results of any Reserve Capacity Tests or Verification Tests; and

$c$ any other matters AEMO considers relevant.

4.13A.21. If, at any time, AEMO is no longer satisfied that an

assessment under clause 4.13A.20 would result in AEMO determining to release or waive the requirement for a Market Participant to provide AEMO with the benefit of DSM Reserve Capacity Security, AEMO must give notice to the Market Participant specifying:

$a$ that the Market Participant must provide AEMO with the benefit of DSM Reserve Capacity Security;

$b$ the reasons for its decision;

$c$ the amount of the DSM Reserve Capacity Security as determined in accordance with clauses 4.13A.1 or 4.13A.4, as applicable; and

$d$ the date by which the Market Participant must provide AEMO with the benefit of DSM Reserve Capacity Security, which must not be before the date which is five Business Days after the date of the notice.

4.13A.22. Where a Market Participant receives a notice under clause

4.13A.21, the Market Participant must provide AEMO with the benefit of

DSM Reserve Capacity Security for an amount and by the date specified in the notice.

4.13A.23. AEMO must document in a WEM Procedure the processes relating

to:

$a$ determining DSM Reserve Capacity Security;

$b$ assessing persons against the Acceptable Credit Criteria;

$c$ DSM Reserve Capacity Security arrangements, including:

i. the form of acceptable guarantees and bank undertakings;

ii. where and how it will hold Security Deposits and how the costs and fees of holding Security Deposits will be met;

iii. the circumstances that may require DSM Reserve Capacity Security to be replaced for the purposes of clause 4.13A.12; and

iv. the application of monies drawn from DSM Reserve Capacity Security in respect of amounts payable by the relevant Market Participant to AEMO under clause 4.13A.16; and

$d$ requests under clause 4.13A.18, including:

i. how AEMO will make a determination on whether to accept or decline a request under clause 4.13A.19;

ii. the matters AEMO may take into account;

iii. the evidence a Market Participant will be required to provide in support of a request; and

iv. if AEMO declines a request, that AEMO will be required to provide reasons to the relevant Market Participant; and

$e$ any other matters relating to this section 4.13A.

4.13A.24. If AEMO determines that a Market Participant no longer has any

Reserve Capacity Obligations with respect to any Capacity Year for which the Market Participant was assigned Capacity Credits, AEMO must return any DSM Reserve Capacity Security to the Market Participant as soon as practicable after the end of the relevant Capacity Year and in any event by 30 November of Year 4 of the relevant Reserve Capacity Cycle.

4.13A.25. For the purposes of these WEM Rules, in determining whether a

Demand Side Programme is in Commercial Operation, AEMO may have regard to any information AEMO considers relevant.

Explanatory Note

Section 4.13B requires the Coordinator to undertake a periodic review to assess the continuing effectiveness of the approach for certification of Reserve Capacity for storage capacity.

4.13B. Coordinator Review of Effectiveness of Certification of Reserve

Capacity for Electric Storage Resources

4.13B.1. The Coordinator must review the effectiveness of the approach

for certification of Reserve Capacity for Electric Storage Resources in accordance with this section 4.13B.

4.13B.2. The Coordinator must complete a review under clause 4.13B.1:

$a$ for the first review, within five years of the start of the 2021 Reserve Capacity Cycle; and

$b$ for each subsequent review, at least once every five years from the completion of the preceding review under this section 4.13B.

4.13B.3. A review conducted under clause 4.13B.1 must examine :

$a$ whether the methodology for rating the capacity of Electric Storage Resources for the purposes of setting Certified Reserve Capacity remains consistent with the Wholesale Market Objectives;

$b$ whether the Electric Storage Resource Obligation Duration for Electric Storage Resources remains consistent with the Wholesale Market Objectives;

$c$ whether the Electric Storage Resource Obligation Intervals for Electric Storage Resources remain consistent with the Wholesale Market Objectives; and

$d$ whether the methodology and processes used by AEMO to determine the Electric Storage Resource Obligation Intervals, in which the Reserve Capacity Obligation Quantity for Electric Storage Resources applies, remain consistent with the Wholesale Market Objectives.

4.13B.4. In conducting a review under clause 4.13B.1, the Coordinator

must invite submissions, and publish all submissions received, from Rule Participants and any other interested stakeholders.

4.13B.5. The Coordinator must publish a report containing:

$a$ the issues identified by the Coordinator;

$b$ the assumptions made by the Coordinator in undertaking the review;

$c$ the results of any technical studies;

$d$ a summary of any submissions on the draft report received by the Coordinator from Rule Participants and other interested stakeholders in accordance with clause 4.13B.4;

$e$ the Coordinator’s responses to the issues raised in those submissions;

$f$ any recommendations of the Coordinator; and

$g$ any other matters the Coordinator considers relevant to the review.

4.13B.6. If the Coordinator recommends changes as a result of the report

prepared under this section 4.13B, the Coordinator must either submit a Rule Change Proposal or, where the change relates to the WEM Procedure documented by AEMO under clause 4.11.3A, recommend that AEMO initiate a Procedure Change Process to implement those changes.

Commitment of Capacity to Bilateral Trade

4.14. Bilateral Trade Declaration

Explanatory Note

Clause 4.14.1 is amended as a consequence of the deletion of the Reserve Capacity Auction and to accommodate the participation of “hybrid” facilities containing more than one technology type in the Reserve Capacity Mechanism.

4.14.1. Subject to clause 4.14.3, each Market Participant holding

Certified Reserve Capacity for the current Reserve Capacity Cycle must, by the date and time specified in clause 4.1.14 provide the following information to AEMO for each Facility and component of a Facility (expressed in MW to a precision of 0.001 MW):

$a$ [Blank]

$b$ [Blank]

$c$ the total amount of Reserve Capacity the Market Participant intends will be traded bilaterally; and

$d$ the total amount of Reserve Capacity that the Market Participant has decided will not now be made available to the market,

where the sum of the values for clauses 4.14.1(c) and (d) must equal the Certified Reserve Capacity of the Facility for the Reserve Capacity Cycle.

4.14.1B. A Market Participant holding Certified Reserve Capacity for the

current Reserve Capacity Cycle may, by the date and time specified in clause 4.1.14, nominate to AEMO by notice in writing that the Facility be classified as a Fixed Price Facility.

Explanatory Note

Clause 4.14.1C(b) is amended to reflect the new terminology and clause 4.14.1C(e) is a consequential amendment resulting from the deletion of section 4.28B (Treatment of New Small Generators).

4.14.1C. For the purposes of clause 4.14.1B, a Facility may only be

nominated to be classified as a Fixed Price Facility if:

$a$ the Facility has not been assigned Capacity Credits in a previous Reserve Capacity Cycle;

$b$ the Facility is an Energy Producing System;

$c$ the Facility is not considered by AEMO to be in Commercial Operation;

$d$ the Facility is not subject to an NCESS Contract (at the date Capacity Credits are first assigned to the Facility);

$e$ the Facility is not a Network Augmentation Funding Facility under section 4.10A; and

$f$ section 4.28C does not apply to the Facility.

Explanatory Note

Clause 4.14.1D requires Market Participants to specify in their bilateral trade declaration the minimum number of Capacity Credits to be assigned to a Facility for it to participate in the RCM. Where the Network Access Quantity for a Facility, as determined in accordance with Appendix 3, is below that threshold, a Network Access Quantity will not be determined for the Facility and, consequently no Capacity Credits will be assigned to the Facility for the relevant Reserve Capacity Cycle.

4.14.1D. A Market Participant holding Certified Reserve Capacity for the

current Reserve Capacity Cycle for a Facility that is not committed must, by the date and time specified in clause 4.1.14, notify AEMO in writing of the Minimum Capacity Credits Quantity for the Facility for that Reserve Capacity Cycle.

4.14.2. A Capacity Credit (and the Reserve Capacity associated with a

Capacity Credit) is “traded bilaterally” for the purposes of these WEM Rules where:

$a$ the Market Participant holding the Capacity Credits in respect of a Facility has entered into an arrangement with another Market Participant under which any of the Capacity Credits for that Facility will be allocated to the other Market Participant for settlement purposes to allow the other Market Participant to meet its Individual Reserve Capacity Requirement in accordance with sections 4.30 and 4.31; or

$b$ the Market Participant holding the Capacity Credits in respect of a Facility allocates any of the Capacity Credits for that Facility for settlement purposes to meet its own Individual Reserve Capacity Requirement in accordance with sections 4.30 and 4.31.

4.14.3. A Market Participant holding Certified Reserve Capacity with

respect to a Facility subject to an NCESS Contract must nominate all Certified Reserve Capacity under clause 4.14.1(c).

4.14.4. [Blank]

4.14.5 [Blank]

4.14.6. If two or more Facilities cannot simultaneously exist (for

example, because more than one Market Participant is proposing to build a Facility that will be located at the same site,) then AEMO cannot accept a non-zero value provided in accordance with either or both of clause 4.14.1(c) in respect of more than one of these Facilities and must reject all but one Facility based on the following criteria:

$a$ Facilities that are operational or are committed will be accepted ahead of other Facilities; then

$b$ if more than one Facility remains, then Facilities that can demonstrate having secured financing will be accepted ahead of other Facilities; then

$c$ if more than one Facility remains, then Facilities with the greatest quantity of Certified Reserve Capacity will be accepted ahead of Facilities with lower Certified Reserve Capacity; then

$d$ if more than one Facility remains, then Facilities identified in Expressions of Interest will be accepted ahead of other Facilities; then

$e$ if more than one Facility remains, then AEMO will accept one based on the order in which they applied for Certified Reserve Capacity, including applications for Conditional Certified Reserve Capacity.

4.14.7. AEMO must review the information provided by Market Participants

in accordance with clause 4.14.1 to ensure that the information provided is consistent with the Certified Reserve Capacity of each Facility and the requirements of this section 4.14, and:

$a$ if the information is not consistent, then AEMO must endeavour to resolve the discrepancy with the Market Participant within one Business Day of receipt;

$b$ if the information is consistent, then AEMO must inform the Market Participant within one Business Day of receipt that the information is accepted; and

$c$ if AEMO cannot establish what a Market Participant’s intentions are with respect to all or part of its Certified Reserve Capacity within the time allowed for resolving discrepancies by clause 4.14.7(a), then the relevant part of that Market Participant’s:

i. [Blank]

ii. Certified Reserve Capacity will be treated as being unavailable to the market,

and AEMO must notify the Market Participant of this outcome within one Business Day of the deadline for resolving discrepancies specified in clause 4.14.7(a).

Explanatory Note

Clause 4.14.8 is amended to make it clear that any Certified Reserve Capacity terminated under that clause for an existing Facility will not be reflected in the Certified Reserve Capacity quantity referred to in new clause 4.1A.2, which specifies how the Initial Network Access Quantity for existing Facilities (excluding GIA Facilities) is to be determined.

4.14.8. If Certified Reserve Capacity is not to be made available to the

market as a result of the acceptance by AEMO of information submitted by a Market Participant in accordance with clause 4.14.1(d), or because clause 4.14.7(c)(ii) applies, then all obligations associated with that part of the Certified Reserve Capacity held by the relevant Market Participant are to terminate from the time AEMO notifies the Market Participant that it accepts the information provided in accordance with clause 4.14.1 or the application of clause 4.14.7(c)(ii) (as applicable) and that part of the Certified Reserve Capacity ceases to be Certified Reserve Capacity for the purposes of these WEM Rules (including for the purposes of determining an Initial Network Access Quantity under clause

4.1A.2).

4.14.9. AEMO must notify each Market Participant that specified a

non-zero amount under clause 4.14.1(c) by the date and time specified in clause 4.1.15 of the quantity of Certified Reserve Capacity held by the Market Participant in respect of each Facility that it can trade bilaterally, where this quantity must exclude Certified Reserve Capacity to which clause 4.14.8 relates.

4.14.10. [Blank]

Explanatory Note

Clause 4.14.11 is amended as a consequence of the deletion of the Reserve Capacity Auction and to amend the reference from ‘Rule Participants’ to ‘Market Participants’ (for consistency with the other clauses in section 4.14).

4.14.11. AEMO must develop a WEM Procedure documenting the process AEMO

and Market Participants must follow for the bilateral trade declaration under this section 4.14.

Network Access Quantity

Explanatory Note

Section 4.15 sets out the new Network Access Quantity (NAQ) framework.

The NAQ:

defines the network capacity, in MW, available to a Facility for the purpose of determining the Capacity Credits that can be assigned to the Facility up to the amount of its Certified Reserve Capacity; and
establishes a preferential right to receive a Capacity Credit, which can only be reduced in specific circumstances.

The primary purpose of the NAQ is to protect a Facility’s quantity of Capacity Credits from an unhedgeable risk of being inefficiently displaced by new entrant facilities connecting in constrained sections of the network, where that additional capacity is not needed for system reliability but is simply displacing an existing performing resource.

The NAQ protects the investment in Facilities that continue to participate in the RCM and meet all their performance obligations. A Facility that, for reasons related to its own poor performance, fails to provide its capacity to the RCM when required by the system surrenders its ability to retain the unreliable portion of its NAQ. A Facility that retires (or is mothballed or removed from service) must relinquish its NAQ.

The NAQ is determined in relation to network capacity and is based on the physical limits of the network. Hence, the NAQ serves as a cap on the amount of Capacity Credits that can be assigned in specific regions of the network. NAQ will be determined for a Facility up to the amount of network capacity that can accommodate the Facility’s Certified Reserve Capacity at peak times or other periods of low reserve. This will ensure that the sum of NAQ determined for Facilities in specific network regions (and in aggregate for the network as a whole) does not exceed the transfer capability of the network.

Once NAQ is determined, new Facilities seeking to connect in a specific region of the network can only receive NAQ up to the residual capacity of the network in that region, after accounting for NAQ that has already been determined.

A Facility’s NAQ can be reduced or increased due to ‘organic’ changes that are beyond the control of the Facility i.e. due to changes in demand, network configuration, or weather conditions for intermittent facilities. The policy position is to afford these facilities a priority for additional NAQ should conditions improve (ahead of other capacity). This is intended to be implemented in the new framework by tracking a ‘Highest Network Access Quantity’ value.

The NAQ has no role in dispatch or settlement of the energy or ESS markets, which will operate under the new Security Constrained Economic Dispatch market model.

In accordance with the Miscellaneous Amendments No. 2, section 4.15 will be amended to '[Blank'] for the period from 1 March 2022 until the amendments contained in the Tranches 2 and 3 Amendments (i.e. those set out below) below commence on 1 September 2022.

4.15. Network Access Quantity

Explanatory Note

Clause 4.15.1 requires AEMO to determine NAQs for relevant Facilities.

A Facility’s NAQ is a function of:

the Facility’s Certified Reserve Capacity; and
the network capacity that is available to accommodate the Facility’s Certified Reserve Capacity.

Therefore, once AEMO has verified the performance capability of the Facility (through the process of assigning Certified Reserve Capacity) AEMO will then conduct an assessment (through a network capacity modelling exercise) to determine how much of the Facility’s certified output can be accommodated by the network.

Clause 4.15.5 will be replaced by the Wholesale Electricity Market Amendment (Tranche 5 Amendments) Rules 2021 (Tranche 5 Amendments) on 1 September 2022.

Tranche 6 Exposure Draft 1 included proposed amendments to ensure that the facility dispatch scenarios developed by AEMO for use with the Network Access Quantity Model consider Facilities with Early Certified Reserve Capacity.

An additional issue with this clause was identified by AEMO after the publication of Tranche 6 Exposure Draft 1. Depending on the relevant Step in Appendix 3, a Facilities may be dispatched up to their Certified Reserve Capacity or their Network Access Quantity assigned in the previous Reserve Capacity Cycle. In the situation where either the total assigned Certified Reserve Capacity or Network Access Quantities is less than the peak demand it will be impossible for AEMO to satisfy clause ### 4.15.5(c).

For this reason, clause 4.15.5 is further amended to remove clause ### 4.15.5(c). How AEMO will create facility dispatch scenarios in a shortfall situation will be covered in the Network Access Quantity WEM Procedure.

Finally, following the consultation period for Tranche 6 Exposure Draft 2, AEMO made a further suggestion to remove the requirement to model NCESS for the creation of facility dispatch scenarios. AEMO suggested to create Constraint Equations to ensure that during a solve, the Facilities redispatch always meet the NCESS requirement. AEMO considers that modelling the NCESS in the facility dispatch scenarios may have an adverse impact that could result in overallocation of Network Access Quantities to an NCESS Facility. In addition, the solution using Constraint Equations is easier to implement and consistent with the current design of the NAQ model.

In making its recommendation, AEMO (in consultation with Western Power) considered whether it would be feasible to translate all possible types of NCESS into Constraint Equations, considering the type of constraint could be very different compared to Network thermal constraints. AEMO and Western Power identified two scenarios where it would not be possible to use a Constraint Equation to enforce an NCESS:

if the NCESS influences the dispatch of a Non Scheduled Facility - note the NSF have a set dispatch value equal to their traded Certified Reserve Capacity at any time, consistent with clause 4.15.9(d) that requires AEMO to treat them as unconstrained; and
if the NCESS translates into a non-linear equation.

Both Western Power and AEMO do not foresee either of these scenarios happening in the near future. In the event of an NCESS requiring either the constraint of a NSF or to use a non-linear equation, AEMO would be able to make modifications required to the NAQ model to account for it. However, anticipating the design for this unlikely edge case would require non-negligible effort and time and AEMO does not think this is appropriate at this stage.

4.15.1. AEMO must determine Network Access Quantities and Indicative

Network Access Quantities for Facilities in accordance with this section

4.15 and Appendix 3.

4.15.2. The Network Access Quantity for a Facility for a Reserve

Capacity Cycle is the Final Network Access Quantity, if any, determined in accordance with the processes in Appendix 3 for that Reserve Capacity Cycle.

4.15.3. The assumptions that must be taken into account by the Network

Access Quantity Model developed under clause 4.15.7, for the relevant Reserve Capacity Cycle are:

$a$ assume that all major transmission Network elements are in service, except those which are normally configured to be out of service under peak demand conditions described in clause 4.4B.3;

$b$ any other relevant information from Network Operators on the assumed status of the Network under peak demand conditions; and

$c$ assume peak demand is equal to the value determined under clause

4.5.10(a)(iv) and used in the calculation of the Reserve Capacity

Requirement for the relevant Capacity Year.

4.15.4. Subject to clause 4.15.5, AEMO must develop, in accordance with

the WEM Procedure referred to in clause 4.15.17, a range of facility dispatch scenarios that describe how Facilities could be dispatched at the time of peak demand (as described in clause 4.15.3(c)).

Explanatory Note:

Clauses 4.15.5 is amended to enable AEMO to:

include Early CRC Facilities in the facility dispatch scenarios; and
specify further factors to be considered in the facility dispatch scenarios which should be specified in the relevant WEM Procedure (e.g.not allowing dispatch under minimum stable generation level, not dispatching above the highest approved network Access Quantity and specifications for the dispatch of intermittent Loads).

4.15.5. The facility dispatch scenarios to be developed by AEMO pursuant

to clause 4.15.4 must:

$a$ include, in AEMO’s sole discretion, variations in the output of Facilities dispatched to meet peak demand;

$b$ include Facilities with Certified Reserve Capacity or Early Certified Reserve Capacity for the relevant Reserve Capacity Cycle;

$c$ ensure a Facility is not dispatched to a level greater than the Certified Reserve Capacity or Early Certified Reserve Capacity for the Facility; and

$d$ include any other factors specified in the WEM Procedure referred to in clause 4.15.17.

4.15.6. AEMO must develop and maintain a Network Access Quantity Model

in accordance with clause 4.15.7 and use the Network Access Quantity Model when undertaking the processes in Appendix 3 for each Reserve Capacity Cycle.

4.15.7. The Network Access Quantity Model must:

$a$ apply the principles specified in clause 4.15.9;

$b$ take into account the matters specified in clause 4.15.8 and the assumptions specified in clause 4.15.3;

$c$ be in accordance with the processes in Appendix 3;

$d$ incorporate the facility dispatch scenarios to be developed by AEMO under clause 4.15.4, RCM Constraint Equations, Constraint Equations developed using Non-Thermal Network Limits for Facilities (including Constraint Equations developed using Non-Thermal Network Limits under clause 4.4B.4), and the peak demand (as described in clause 4.15.3(c);

$e$ comply with the WEM Procedure referred to in clause 4.15.17; and

$f$ be consistent with the Wholesale Market Objectives.

4.15.8. The matters that must be taken into account by the Network

Access Quantity Model developed under clause 4.15.6, for the relevant Reserve Capacity Cycle, are:

$a$ committed network augmentations of the SWIS that are expected to be in service for the Capacity Year to which the Reserve Capacity Cycle relates;

$b$ the expected retirement of Facilities pursuant to a notice provided under clause 4.4A.1;

$c$ committed Network changes; and

$d$ any other matters specified in the WEM Procedure referred to in clause 4.15.17.

4.15.9. The principles that must be applied by the Network Access

Quantity Model under clause 4.15.7 are:

$a$ where a redispatch is required to avoid a constraint in the RCM Constraint Equations violating it is done so in a way that minimises the total change in output across all Facilities, subject to the NAQ rules as defined in Appendix 3;

$b$ where multiple Facilities are competing for Network Access Quantity and the available Network Access Quantity is insufficient for all of those Facilities to receive a value equal to the Certified Reserve Capacity for each of those Facilities, the available Network Access Quantity must be allocated in a manner that results in maximising the total Network Access Quantities determined for Facilities;

$c$ the level of Network access expected to be available to the Facility is equal to at least 95% of the facility dispatch scenarios that could, applying the matters in clause 4.15.5, occur to meet peak demand (as described in clause 4.15.3(c)) on the SWIS for the relevant Capacity Year; and

$d$ any Certified Reserve Capacity assigned to a Facility in accordance with clause 4.11.1(bD) or clause 4.11.1(bE) is to be treated as unconstrained for the purposes of determining Network Access Quantities for Facilities in accordance with this section 4.15.

4.15.10. The Network Access Quantity determined for a Facility is to be

expressed to a precision of 0.001 MW.

4.15.11. AEMO must notify each Market Participant that specified a

non-zero amount under clause 4.14.1(c) of the Network Access Quantity, if any, determined for its Facility under clause 4.15.2 by the date and time specified in clause 4.1.16A.

Explanatory Note

Clause 4.15.12 provides that any NAQ for a Facility that is retired (or is mothballed or removed from service) must also relinquish the NAQ for the Facility.

Where a section 4.4A.1 notice is given to AEMO, any subsequent application for Certified Reserve Capacity and a NAQ for the Facility for a Reserve Capacity Cycle will be assessed on the basis it is an application in respect of a new Facility.

The effective date the NAQ is relinquished is the expected closure date for the Facility specified in the section 4.4A.1 notice.

4.15.12. A Network Access Quantity for a Facility that is to cease

operation permanently is:

$a$ deemed to be relinquished by the Market Participant in respect to the Reserve Capacity Cycle in which the Facility is intended to cease operation permanently; and

$b$ the relinquishment is effective from the earlier of:

i. the expected closure date specified in the notice under section

4.4A.1 in respect to the Facility; and

ii. any earlier date pursuant to an amendment to the notice under clause 4.4A.1 in accordance with clause 4.4A.3,

regardless of whether the notice is subsequently withdrawn under clause

4.4A.6.

4.15.13. AEMO must determine and record a Highest Network Access

Quantity for each Facility in accordance with clause 4.15.14.

4.15.14. The Highest Network Access Quantity for a Facility for a

Reserve Capacity Cycle is the quantity determined by AEMO as being equal to:

$a$ the Highest Network Access Quantity assigned to the Facility for the previous Reserve Capacity Cycle which may be increased or decreased for the current Reserve Capacity Cycle in accordance with clause

4.15.15; and

$b$ where the Facility has not been assigned a Highest Network Access Quantity in a previous Reserve Capacity Cycle, the Network Access Quantity determined by applying the methodology described in Appendix 3 for the Capacity Year in respect of the current Reserve Capacity Cycle.

Explanatory Note

Clause 4.15.15 describes when a Facility’s Highest NAQ may be reduced or increased.

Clause 4.15.15(a) is amended to ensure a Facility that is not assigned Certified Reserve Capacity by the Relevant Level Methodology, the Highest Network Access Quantity will be reduced if they are assigned a quantity of Certified Reserve Capacity less than the Highest Network Access Quantity.

Clauses 4.15.15(c) is added to reflect the policy decision that the Highest Network Access Quantity of a Facility is set to zero if the Facility does not get assigned Certified Reserve Capacity in a Reserve Capacity Cycle.

4.15.15. Where, for a Reserve Capacity Cycle:

$a$ a Facility, that is not assigned Certified Reserve Capacity using the methodology described in clause 4.11.2(b) and is assigned a quantity of Certified Reserve Capacity that is less than the Highest Network Access Quantity for the Facility for that Reserve Capacity Cycle, the Highest Network Access Quantity for the Facility is to be reduced to equal the quantity of Certified Reserve Capacity assigned to the Facility for that Reserve Capacity Cycle;

$b$ the Network Access Quantity under clause 4.15.2 is higher than the Highest Network Access Quantity for the Facility, AEMO must increase the Highest Network Access Quantity for the Facility to an amount equal to the Network Access Quantity under clause 4.15.2; and

$c$ a Facility is not assigned Certified Reserve Capacity for the Reserve Capacity Cycle, the Highest Network Access Quantity for the Facility is to be reduced to zero.

Explanatory Note

Clause 4.15.16 requires AEMO to publish information used in the NAQ Model and the NAQ determined for each Facility following the processes in Appendix 3.

Clause 4.1.16A(d) requires AEMO to publish the information by 5:00pm on the last Business Day falling on or before 30 September in Year 1 of the relevant Reserve Capacity Cycle.

Clause 4.15.16 is further amended to require AEMO to publish Indicative Network Access Quantities at the same time as it publishes Network Access Quantities.

Clause 4.15.16(b) is amended to clarify that the information is provided for the Facilities assessed in the NAQ model.

The requirement from clause 10.5.1(f)(xiii) to publish the Highest Network Access Quantity for each Facility has been relocated to clause ### 4.15.16.

4.15.16. AEMO must publish the following information on the WEM Website

by the date and time specified in clause 4.1.16A(d):

$a$ the Network Access Quantity Model Inputs;

$b$ the Network Access Quantity or Indicative Network Access Quantity determined for each Facility assessed in the Network Access Quantity Model; and

$c$ the Highest Network Access Quantity for each Facility.

4.15.17. AEMO must document in a WEM Procedure:

$a$ the processes, methodologies, inputs, parameters and assumptions to be applied in the Network Access Quantity Model for modelling the prioritisation and determination of Network Access Quantities to Facilities under Appendix 3;

$b$ the processes to be followed by AEMO in determining the facility dispatch scenarios under clause 4.15.5;

$c$ the processes AEMO must follow when determining Network Access Quantities for a Reserve Capacity Cycle, including how Network Access Quantities are determined for Facilities;

$d$ the processes to be followed by AEMO for publishing the information under clause 4.15.16;

$e$ without limiting any other provision of these WEM Rules, information that a Market Participant or Network Operator must provide to AEMO and the format it must be provided in, for the purposes of operating the Network Access Quantity Model and determining Network Access Quantities to Facilities under Appendix 3; and

$f$ any other matters that AEMO reasonably deems relevant to performing its functions under this section 4.15.

The Benchmark Reserve Capacity Price

4.16. The Benchmark Reserve Capacity Price

4.16.1. For all Reserve Capacity Cycles, the Economic Regulation

Authority must publish a Benchmark Reserve Capacity Price as determined in accordance with this section 4.16 prior to the time specified in section 4.1.4.

4.16.2. [Blank]

4.16.3 The Economic Regulation Authority must develop a WEM Procedure

documenting the methodology it must use and the process it must follow in determining the Benchmark Reserve Capacity Price, and:

$a$ the Economic Regulation Authority, AEMO and Rule Participants must follow that documented WEM Procedure when conducting any review and consultations in accordance with that WEM Procedure and clause 4.16.6; and

$b$ the Economic Regulation Authority must follow that documented WEM Procedure to annually review the value of the Benchmark Reserve Capacity Price in accordance with this section 4.16 and in accordance with the timing requirements specified in clause 4.1.19.

4.16.4. [Blank]

4.16.5. The Economic Regulation Authority must revise the value of the

Benchmark Reserve Capacity Price using the methodology described in the WEM Procedure referred to in clause 4.16.3.

4.16.6. The Economic Regulation Authority must prepare a draft report

describing how it has arrived at a proposed revised value for the Benchmark Reserve Capacity Price under clause 4.16.5. The Economic Regulation Authority must publish the report on its website and advertise the report in newspapers widely distributed in Western Australia and request submissions from all sectors of the Western Australia energy industry, including end-users.

4.16.7. After considering of the submissions on the draft report

described in clause 4.16.6 the Economic Regulation Authority must propose a final revised value for the Benchmark Reserve Capacity Price and publish that value and its final report, including submissions received on the draft report on its website.

4.16.8. A proposed revised value for the Benchmark Reserve Capacity

Price becomes the Benchmark Reserve Capacity Price after the Economic Regulation Authority has posted a notice on its website of the new value of the Benchmark Reserve Capacity Price with effect from the date and time specified in the Economic Regulation Authority’s notice.

4.16.8A. Within five days of publication of the Benchmark Reserve

Capacity Price by the Economic Regulation Authority under clause 4.16.8, AEMO must publish the Benchmark Reserve Capacity Price on the WEM Website.

4.16.9 At least once in every five year period, the Economic Regulation

Authority must review the WEM Procedure referred to in clause 4.16.3 and must undertake a public consultation process in respect of the outcome of the review.

4.16.10. If the Economic Regulation Authority recommends changes as a

result of the review in clause 4.16.9, the Economic Regulation Authority must either submit a Rule Change Proposal or initiate a Procedure Change Process, as the case may be, to implement those changes.

4.17. [Blank]

4.18. [Blank]

4.19. [Blank]

Capacity Credits

4.20. Capacity Credits

4.20.1. [Blank]

4.20.2. [Blank]

4.20.3. [Blank]

4.20.4. [Blank]

4.20.5. [Blank]

Explanatory Note

Clauses 4.20.5A(a), 4.20.5A(b) and 4.20.5AA(d) are amended as consequence of the deletion of the Reserve Capacity Auction.

Clause 4.20.5A is further amended to require the recording of the Capacity Credits associated with each component of the Facility and for CC Uplift Quantities for relevant Facilities to also be published and to correct an error in the initial drafting namely, after the commencement of the NAQ regime, at this stage in the Reserve Capacity process AEMO has no certainty of how many Capacity Credits are assigned to each component of the “hybrid” facility.

4.20.5A. AEMO must:

$a$ subject to clause 4.20.5C, assign a quantity of Capacity Credits to each Facility where the quantity is determined in accordance with clause 4.20.5B for the relevant Facility;

(aA) determine whether the Reserve Capacity Requirement has been met or exceeded with the Capacity Credits (excluding any Capacity Credits associated with any CC Uplift Quantities) assigned for Year 3 of a Reserve Capacity Cycle:

i. to Facilities to which section 4.13 applies, for which no Reserve Capacity Security was required to be provided under section 4.13; or

ii. to Demand Side Programmes determined by AEMO to be in Commercial Operation; and

$b$ publish, by the date and time specified in clause 4.1.16A:

i. AEMO’s determination under clause 4.20.5A(aA); and,

ii. for each Facility assigned Capacity Credits under clause

4.20.5A(a):

1. the quantity of Capacity Credits assigned;

2. any CC Uplift Quantity associated with the Capacity Credits assigned; and

3. the Facility Class.

Explanatory Note

Clause 4.20.5AA specifies the information AEMO is required to publish with respect to the prices paid for Reserve Capacity.

For example, for the 2019 Reserve Capacity Cycle, if the total number of Capacity Credits assigned is 110 MW and the (hypothetical) market/spot price is $145,000, the information may be:

2019 Reserve Capacity Cycle
Volume (in MW)	Reserve Capacity Price	Drafting comment
90	$140,000	Transitional Facilities
10	$145,000	Market/spot price (new Facilities and new Demand Side Programmes)

For the 2020 Reserve Capacity Cycle, if the total number of Capacity Credits assigned is 120 MW and the (hypothetical) market/spot price is $105,000, the information may be:

2020 Reserve Capacity Cycle
Volume (in MW)	Reserve Capacity Price	Drafting comment
90	$114,000 + CPI	Transitional Facilities
25	$105,000	Market/spot price (existing Facilities - that are not Transitional Facilities or Fixed Price Facilities – and new Facilities and Demand Side Programmes)
5	$145,000 + CPI	Fixed Price Facilities (fixed in the 2019 Reserve Capacity Cycle)

4.20.5AA. For each Reserve Capacity Cycle, where AEMO has assigned

Capacity Credits to Facilities at any of the following prices, AEMO must publish a summary of the aggregate quantity of MW of Capacity Credits assigned to Facilities at each price for the Reserve Capacity Cycle:

$a$ the Reserve Capacity Price;

$b$ if the Reserve Capacity Cycle is also a Transitional Reserve Capacity Cycle, the Facility Monthly Reserve Capacity Price for a Transitional Facility determined in accordance with clause 4.29.1B multiplied by 12; and

$c$ if the Reserve Capacity Cycle is also a Fixed Price Reserve Capacity Cycle, the Facility Monthly Reserve Capacity Price for each Fixed Price Facility that is a Fixed Price Facility for that Fixed Price Reserve Capacity Cycle determined in accordance with clause 4.29.1D multiplied by 12.

$d$ [Blank]

Explanatory Note

Clause 4.20.5B is amended as a consequence of the deletion of the Reserve Capacity Auction, and to clarify the quantity of Capacity Credits assigned to a Facility.

However, clause 4.20.5B is also amended by the Miscellaneous Amendments No. 1. As clause 4.20.5B is amended to reflect 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. 1 to see the changes to clause 4.20.5B that will commence on 1 March 2022 and apply until the Tranches 2 and 3 Amendments to clause 4.20.5B commence.

4.20.5B. The quantity of Capacity Credits assigned to a Facility f is

equal to the sum of:

$a$ the Network Access Quantity determined by AEMO in accordance with section 4.15 for Facility f; and

$b$ the CC Uplift Quantity applicable to Facility f as determined and amended by AEMO in accordance with section 4.1A.

Explanatory Note

Clause 4.20.5C is deleted as a consequence of the deletion of the Reserve Capacity Auction.

Replacement clause 4.20.5C has been added to clarify that where a NAQ has not been determined for a Facility in accordance with section 4.15 for a Reserve Capacity Cycle, the Facility will not be eligible to be assigned any Capacity Credits for that Reserve Capacity Cycle.

However, clause 4.20.5C is also amended by the Miscellaneous Amendments No. 1. As clause 4.20.5C is amended to reflect 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. 1 to see the changes to clause 4.20.5C that will commence on 1 March 2022 and apply until the Tranches 2 and 3 Amendments to clause 4.20.5C commence.

4.20.5C. Where, for a Facility for a Reserve Capacity Cycle:

$a$ the Network Access Quantity determined for the Facility in accordance with section 4.15 is not greater than zero; or

$b$ a Network Access Quantity has not been determined for the Facility in accordance with section 4.15,

the Facility will not be eligible to be assigned a quantity of Capacity Credits under clause 4.20.5A(a) for that Reserve Capacity Cycle, including, to avoid doubt, a quantity equal to zero.

4.20.5D. [Blank]

4.20.6. [Blank]

4.20.7. Payments for Capacity Credits under these WEM Rules can only

occur for the period between the time and date that the associated Reserve Capacity Obligations commence and the time and date that the associated Reserve Capacity Obligations cease.

4.20.8 If, by the date and time specified in clause 4.1.21B, AEMO

becomes aware that no capacity associated with the Capacity Credits assigned to a new Facility that is yet to enter service will be made available to the market for an entire Capacity Year, it must issue a Notice of Intention to Cancel Capacity Credits to the Market Participant for that Facility for that Capacity Year.

4.20.9 A Notice of Intention to Cancel Capacity Credits issued to a

Market Participant by AEMO, in accordance with clause 4.20.8, must include:

$a$ the details of the Facility to which the Notice of Intention to Cancel Capacity Credits applies;

$b$ details of the evidence considered by AEMO in determining that no capacity associated with the Capacity Credits assigned to the Facility will be made available to the market for the entire Capacity Year; and

$c$ the Capacity Year for which the cancellation of Capacity Credits assigned to the Facility will apply.

4.20.10. Within 10 Business Days of being issued a Notice of Intention

to Cancel Capacity Credits in accordance with clause 4.20.8, the Market Participant may make a submission to AEMO detailing any reasons it considers should be taken into account by AEMO in making a final determination to cancel the Capacity Credits assigned to the Facility for the Capacity Year.

4.20.11. Where AEMO has issued a Notice of Intention to Cancel Capacity

Credits in accordance with clause 4.20.8, AEMO must, within 20 Business Days of issuing the Notice of Intention to Cancel Capacity Credits, decide whether it will cancel the Capacity Credits assigned to the Facility for the Capacity Year.

4.20.12. Where AEMO makes a decision to cancel the Capacity Credits

assigned to a Facility for a Capacity Year in accordance with clause

4.20.11, it must notify the Market Participant of its decision within 5

Business Days, including:

$a$ the details of the Facility;

$b$ a response to all issues raised by the Market Participant in any submission made in accordance with clause 4.20.10;

$c$ details of the evidence considered by AEMO in determining that no capacity associated with the Capacity Credits assigned to the Facility will be made available to the market for the entire Capacity Year; and

$d$ the Capacity Year for which the cancellation of Capacity Credits assigned to the Facility will apply.

4.20.13. Within 10 Business Days of making a decision, in accordance

with clause 4.20.11, to cancel the Capacity Credits assigned to a Facility AEMO must publish on the WEM Website the information specified in clauses 4.20.12(a), 4.20.12(c) and 4.20.12(d).

4.20.14. Where AEMO has made a decision to cancel the Capacity Credits

assigned to a Facility in accordance with clause 4.20.11, AEMO must cancel the Capacity Credits assigned to the Facility for the Capacity Year specified in clause 4.20.12(d).

4.20.15. Where AEMO has made a decision not to cancel the Capacity

Credits assigned to a Facility for a Capacity Year in accordance with clause 4.20.11, it must notify the Market Participant of its decision within 5 Business Days.

Explanatory Note

Clause 4.20.16 requires a Market Participant to nominate the number of Capacity Credits to be associated with each component of its Facility (not exceeding the level of Certified Reserve Capacity for each such component) where the Capacity Credits assigned to the Facility is less than the Facility’s total Certified Reserve Capacity for each component.

4.20.16. Where AEMO has assigned Capacity Credits to a Facility for a

Capacity Year that is less than the total Certified Reserve Capacity for each component of the Facility for that Capacity Year, the Market Participant must, by the date and time specified in clause 4.1.21A, notify AEMO of the number of Capacity Credits that are to be associated with each component of the Facility for the Capacity Year, where the number must not exceed the Certified Reserve Capacity assigned to each component of the Facility for that Capacity Year.

Explanatory Note

Clause 4.20.17 sets out how AEMO is to set the number of Capacity Credits associated with the Electric Storage Resource component of a Facility for a Capacity Year.

Subsequent amendments allow association of Capacity Credits with all relevant components, including Electric Storage Resources.

4.20.17. Where AEMO has assigned Capacity Credits to a Facility for a

Capacity Year, AEMO must set the number of Capacity Credits to be associated with each component of the Facility for the Capacity Year as:

$a$ the number of Capacity Credits the Market Participant nominated to trade bilaterally under clause 4.14.1; or

$b$ where clause 4.20.16 applies, the number of Capacity Credits notified to AEMO under that clause to be associated with each component of the Facility.

4.20.18. AEMO must publish on the WEM Website, for each Market

Participant holding Capacity Credits, the Capacity Credits provided by each Facility for each Reserve Capacity Cycle.

4.21. [Blank]

4.22. [Blank]

4.23. Capacity Credits and Force Majeure

4.23.1. There are no force majeure conditions associated with Capacity

Credits.

4.23A. Capacity Credits and Facility Registration

4.23A.1. [Blank]

4.23A.2. [Blank]

Explanatory Note

Clauses 4.23A.3 and 4.23A.4 are amended to include a requirement for NAQs to be dealt with when Facilities are aggregated or disaggregated.

Clause 4.23A.3 has been further amended to reflect the removal of the concept of an ‘initial’ Reserve Capacity Obligation Quantity being assigned to a Facility.

4.23A.3. If at any time a Market Participant holds Capacity Credits with

respect to a facility (the “primary facility”) that must be registered as more than one Registered Facility, either as a result of Facility aggregation not being approved by AEMO or being revoked, then AEMO may re-allocate the Certified Reserve Capacity, Capacity Credits and Network Access Quantity of the primary facility between the primary facility and the Registered Facilities subject to the conditions that:

$a$ the Registered Facilities were documented in the original application for Certified Reserve Capacity:

i. as contributing to the capacity covered by those Capacity Credits; and

ii. were represented in the same way in the Constraint Equations or Constraint Sets that were used to determine the total Network Access Quantity for the Registered Facilities;

$b$ AEMO must not allocate more Certified Reserve Capacity, Network Access Quantity or Capacity Credits to a Registered Facility than that Registered Facility can provide based on information provided in the original application for Certified Reserve Capacity for the primary facility;

$c$ after the re-allocation the total Certified Reserve Capacity, the total Network Access Quantity and the total number of Capacity Credits, respectively, of the primary facility and the Registered Facilities must equal the Certified Reserve Capacity, the Network Access Quantity and the number of Capacity Credits immediately prior to the re-allocation; and

$d$ AEMO must consult with the applicable Market Participant and give consideration to its preferences in the re-allocations to the extent allowed by clauses 4.23A.3(a), 4.23A.3(b) and 4.23A.3(c).

4.23A.4. If at any time a Market Participant holds Capacity Credits with

respect to Registered Facilities, for which AEMO has approved aggregation as a single Aggregated Facility in accordance with clause 2.30.7, then AEMO may re-allocate the Certified Reserve Capacity, Network Access Quantity, Capacity Credits and Reserve Capacity Obligation Quantities of the Registered Facilities to the Aggregated Facility subject to the conditions that:

$a$ the information submitted with the application for aggregation must demonstrate that the Aggregated Facility can at all times meet the sum of the full Reserve Capacity Obligation Quantities of the Registered Facilities;

(aA) each Registered Facility is represented in the same way in the Constraint Equations or Constraint Sets that were used to determine the Network Access Quantity for each Registered Facility;

$b$ AEMO must allocate to the Aggregated Facility the Certified Reserve Capacity, Network Access Quantity, Capacity Credits and Reserve Capacity Obligation Quantity it can provide based on information provided in the original application for Certified Reserve Capacity for the Registered Facilities;

$c$ after the re-allocation the Certified Reserve Capacity, Network Access Quantity, the number of Capacity Credits and the Reserve Capacity Obligation Quantities of the Aggregated Facility must equal the sum of the Certified Reserve Capacities, Network Access Quantity, the total number of Capacity Credits, and the sum of the Reserve Capacity Obligation Quantities immediately prior to the aggregation; and

$d$ the Network Access Quantity, Certified Reserve Capacity, Capacity Credits and the Reserve Capacity Obligation Quantities of the Aggregated Facility must at all times be capable of being disaggregated in accordance with clause 4.23A.3.

Addressing Shortages of Reserve Capacity

4.24. Supplementary Capacity

4.24.1. If, at any time after the day which is six months before the

start of a Capacity Year AEMO considers that inadequate Reserve Capacity will be available in the SWIS to maintain Power System Security and Power System Reliability, using the most recent published forecasts and the methodology outlined in clauses 4.5.9(a) and 4.5.9(b) and any other information AEMO considers relevant, then it must:

$a$ determine the expected start and end dates for the period of the shortfall;

$b$ determine the expected amount of the shortfall; and

$c$ seek to acquire supplementary capacity in accordance with clause

4.24.2. 4.24.1A. Without limiting clause 4.24.1, if, at any time after the day

which is six months before the start of a Capacity Year AEMO considers that there is a risk that adequate Reserve Capacity may not be available in the SWIS to maintain Power System Security and Power System Reliability, then it may advertise a call for expressions of interest for supplementary capacity by publishing a notice on the WEM Website and issuing a Market Advisory.

4.24.1B. A notice calling for expressions of interest for supplementary

capacity in accordance with clause 4.24.1A must include:

$a$ the date and time by when any person wishing to respond to the call for expressions of interest must have completed and lodged with AEMO the form specified in clause 4.24.1B(i);

$b$ contact details for AEMO and Western Power;

$c$ AEMO’s preliminary estimate of the amount of capacity which AEMO considers may be required if AEMO decides to seek to acquire supplementary capacity pursuant to clause 4.24.1;

$d$ AEMO’s preliminary estimate of the number of hours over which the capacity is expected to be used;

$e$ AEMO’s preliminary estimate of the time of the day where the capacity is expected to be required;

$f$ AEMO’s preliminary estimate of the term of any Supplementary Capacity Contract if AEMO decides to seek to acquire supplementary capacity pursuant to clause 4.24.1;

$g$ AEMO’s preliminary estimate of the maximum contract value per hour of availability for any Supplementary Capacity Contract that AEMO will accept if AEMO decides to seek to acquire supplementary capacity pursuant to clause 4.24.1;

$h$ the location on the WEM Website of the standard Supplementary Capacity Contract;

$i$ the location on the WEM Website of the form to be used in responding to the call for expressions of interest; and

$j$ the location on the WEM Website of the WEM Procedure referred to in clause 4.24.18.

4.24.1C. Following the close of a call for expressions of interest for

supplementary capacity in accordance with clause 4.24.1A, AEMO:

$a$ must assess all responses received by the closing date, and may assess any late responses;

$b$ must consult with Western Power on any network access matters related to the proposed Eligible Services specified in the responses in accordance with the WEM Procedure referred to in clause.4.24.18; and

$c$ must, for each response assessed by it, provide feedback to each respondent on whether AEMO or Western Power, as applicable, consider the Eligible Services they propose to provide would be capable of meeting the requirements outlined in the call for expressions of interest and contained in the standard Supplementary Capacity Contract.

4.24.2. If AEMO decides to seek to acquire supplementary capacity and:

$a$ the expected start date of the shortfall is at least 12 weeks from the date AEMO becomes aware of the shortfall, then it must call for tenders from potential suppliers of supplementary capacity in an invitation to tender;

$b$ clause 4.24.2(a) does not apply, then it must either:

i. call for tenders from potential suppliers of supplementary capacity in an invitation to tender; or

ii. negotiate directly with potential suppliers of supplementary capacity.

4.24.3. The only eligible sources of supplementary capacity are the

following services (“Eligible Services”):

$a$ load reduction, that is measures to reduce a consumer’s consumption of electricity supplied through the SWIS from that which the consumer would have otherwise consumed, but excluding reductions provided by a Market Participant with a Demand Side Programme that does not satisfy its Reserve Capacity Obligations during the current Capacity Year or a previous Capacity Year;

$b$ the production of electricity by Energy Producing Systems that are not Registered Facilities; and

$c$ the production of electricity by Energy Producing Systems that are Registered Facilities, or load reductions provided by loads, but only to the extent that the electricity is generated, or the load reduction is provided, by capacity for which the relevant Market Participant, either:

i. does not hold Capacity Credits in the current Capacity Year; and

ii. has not held Capacity Credits in the current Capacity Year or a previous Capacity Year; and

iii. holds Capacity Credits in a subsequent Capacity Year,

or

iv. provides evidence satisfactory to AEMO, prior to a Supplementary Capacity Contract taking effect, that:

1. costs have been incurred to enable the provision of the capacity through the installation of physical equipment; and

2. the capacity is in addition to the sent out capacity of the Energy Producing Systems, or the maximum amount of load that can be curtailed, that existed prior to the installation of the physical equipment.

4.24.4. A person is not required to be a Rule Participant in order to

submit a tender in response to a call for tenders under clause 4.24.2 or enter into a Supplementary Capacity Contract with AEMO. However, if a Rule Participant does enter into a Supplementary Capacity Contract with AEMO, then it must comply with that contract.

4.24.5. AEMO must not call for tenders for supplementary capacity

earlier than six calendar months prior to the calendar month in which the shortfall period is expected to start.

4.24.6. If AEMO decides to call for tenders for supplementary capacity,

then, no earlier than 30 Business Days and no later than 10 Business Days prior to the proposed closing date for submission of tenders, AEMO must advertise the call for tenders in accordance with clause 4.24.6A. The advertisement must include:

$a$ the date and time by when any person wishing to tender to supply Eligible Services must have completed and lodged with AEMO the form specified in clause 4.24.7;

$b$ contact details for AEMO and Western Power;

$c$ the amount of capacity required;

$d$ the number of hours over which the capacity is expected to be used;

$e$ the time of the day where the capacity is expected to be required;

$f$ the expected term of any Supplementary Capacity Contracts entered into as a result of the call for tenders;

$g$ the maximum contract value per hour of availability for any Supplementary Capacity Contract that AEMO will accept;

$h$ the location on the WEM Website of the standard Supplementary Capacity Contract; and

$i$ the location on the WEM Website of the tender form to be used in applying to provide Eligible Services.

4.24.6A. In advertising the call for tenders in accordance with clause

4.24.6, 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.

4.24.7. AEMO must prescribe the tender form to be used by those applying

to provide Eligible Services. This form must require the specification of:

$a$ the name and contact details of the applicant;

$b$ the nature of the Eligible Service to be provided;

$c$ the amount of the Eligible Service available;

$d$ the maximum number of hours over the term of the Supplementary Capacity Contract that the Eligible Service will be available;

$e$ the maximum number of hours on each day during the term of the Supplementary Capacity Contract that the Eligible Service will be available;

$f$ the time of each day during the term of the Supplementary Capacity Contract that the Eligible Service will be available;

$g$ any information required to complete the relevant standard form Supplementary Capacity Contract for the Eligible Service and the applicant, together with full details of any amendments to the standard form Supplementary Capacity Contract required by the applicant;

$h$ the mechanism for activating the Eligible Service;

$i$ the mechanisms available for measuring the Eligible Service provided;

$j$ the values of

i. the availability price for the Eligible Service expressed in dollars; and

ii. the activation price for the Eligible Service, expressed in dollars per hour of activation, where this price must reflect direct or opportunity costs incurred,

where the activation price plus:

iii. the availability price; divided by

iv. the lesser of:

1. the number of hours specified in the advertisement for the call for tenders under clause 4.24.6(d); and

2. the number of hours specified for the Eligible Service in accordance with clause 4.24.7(d),

must not exceed the maximum contract value per hour of availability specified in the advertisement for the call for tenders under clause

4.24.6(g); and

$k$ the location of the Eligible Service and any associated Transmission Node Identifier.

4.24.8. In determining the result of a call for tenders and entering

into Supplementary Capacity Contracts:

$a$ AEMO must only accept an offer for the provision of Eligible Services;

$b$ AEMO must not accept an offer for the provision of an Eligible Service if AEMO is not satisfied that the Eligible Service will be available during times of system peak demand coinciding with the shortfall period;

$c$ subject to the preceding paragraphs and clause 4.24.9, AEMO is to seek to enter into the lowest cost mix of Supplementary Capacity Contracts that:

i. will meet the requirement for supplementary capacity; or

ii. will, if it is not possible to meet requirement for supplementary capacity, minimise the remaining Reserve Capacity shortfall,

where the cost of each Supplementary Capacity Contract is to be defined to be the sum of:

iii. the availability price; plus

iv. the product of the activation price and the lesser of:

1. the number of hours specified in the advertisement for the call for tenders under clause 4.24.6(d); and

2. the number of hours specified for the Eligible Service in the relevant tender form in accordance with clause 4.24.7(d); and

$d$ AEMO must be reasonably satisfied that the provider of the Eligible Service has access to a network, where applicable.

4.24.9. AEMO is not under any obligation to accept any tender, or enter

into a Supplementary Capacity Contract in respect of any tender, made in response to a call for tenders under clause 4.24.2.

4.24.10. If AEMO negotiates directly with a potential supplier of

Eligible Services in accordance with clause 4.24.2(b)(ii), then it must provide the following information to the potential supplier:

$a$ the amount of capacity required;

$b$ the relevant standard form Supplementary Capacity Contract; and

$c$ details of the information to be provided by the potential supplier, including:

i. the amount of the Eligible Service available;

ii. the mechanism for activating the Eligible Service;

iii. the mechanisms available for measuring the Eligible Service provided;

iv. the availability price for the Eligible Service expressed in dollars;

v. the activation price for the Eligible Service, expressed in dollars per hour of activation, where this price must reflect direct or opportunity costs incurred; and

vi. the location of the Eligible Service and any associated Transmission Node Identifier.

4.24.11. Subject to clauses 4.24.3, 4.24.11A and 4.24.14, AEMO may at

its discretion enter into any negotiated Supplementary Capacity Contract, but must use reasonable endeavours to minimise the cost of Eligible Services acquired in this manner.

4.24.11A. Where AEMO has issued a call for tenders under clauses

4.24.2(a) or 4.24.2(b)(i), AEMO must not enter into negotiations for a

negotiated Supplementary Capacity Contract under clause 4.24.11 before the completion of the tender, including, to avoid doubt, assessment of all in-time responses received by AEMO in response to the tender.

4.24.12. AEMO must, in consultation with stakeholders, develop and

maintain a standard form Supplementary Capacity Contract, which accords with the requirements in clause 4.24.13.

4.24.13. A standard form Supplementary Capacity Contract will require

the supplier of an Eligible Service to reduce net consumption, or to increase energy production, on instruction from AEMO and must specify:

$a$ that there are no force majeure conditions;

$b$ the settlement process to be followed, including timing of payments;

$c$ contract variation conditions;

$d$ any conditions required to ensure that if a different person takes over the facility used to provide the Eligible Service, that the person taking over will be bound by the contract obligations (for example, by requiring the execution of a deed of assumption or novation);

$e$ the financial consequences of failing to supply the Eligible Service in accordance with the contract, based on the arrangements which apply under section 4.26 where a Market Participant holding Capacity Credits for a Facility fails to comply with its Reserve Capacity Obligations;

$f$ [Blank]

$g$ the technical standards and verification arrangements which facilities used to provide Eligible Services must comply with; and

$h$ blank schedules specifying:

i. the term of the Supplementary Capacity Contract, where this term is not to exceed, but may be shorter than, the Hot Season;

ii. the sources of the net consumption reduction or energy production increase;

iii. the amount of net consumption reduction or energy production increase required;

iv. the notification time to be given for activation;

v. the method of notification of activation;

vi. the minimum duration of any activation;

vii. the maximum duration of any single activation;

viii. any limits on the number of times AEMO can request activation;

ix. the basis to be used for measuring the response;

x. the availability price;

xi. the activation price;

xii. technical matters relating to the facility (including testing); and

xiii. the fact that activation instructions will be given by AEMO.

4.24.14. AEMO must enter into a Supplementary Capacity Contract in the

form of the standard form Supplementary Capacity Contract, except where AEMO considers that one or more variations are reasonably required, having regard to the specific characteristics of the facility providing the supplementary capacity and to any other matter that AEMO considers appropriate, then AEMO may enter into a Supplementary Capacity Contract containing such variations.

4.24.14A. The notification time for activation specified in a

Supplementary Capacity Contract must be aligned, to the extent practicable and considering the characteristics of the facility providing the Eligible Service, with the notification time applicable to a similar type of facility providing a similar service under the WEM Rules.

4.24.15. AEMO must recover the full cost it incurs in respect of

Supplementary Capacity Contracts in accordance with section 4.28 and Chapter 9.

4.24.16. [Blank]

4.24.17. [Blank]

4.24.18. AEMO must document in a WEM Procedure:

$a$ the process it follows in:

i. acquiring Eligible Services;

ii. entering into Supplementary Capacity Contracts;

iii. determining the maximum contract value per hour of availability for any Supplementary Capacity Contract;

iv determining how a payment in relation to a Supplementary Capacity Contract is to be made to the party identified in clause 4.29.3(e)(ii) if that party is not a Market Participant; and

v. determining under clause 4.24.8(d) that a provider of an Eligible Service has access to the network;

$b$ requirements regarding the information and assistance AEMO may require from Western Power to support an expression of interest process or a procurement process for supplementary capacity under this section

4.24;

$c$ requirements, developed in consultation with Western Power, regarding the information that must be provided by those applying to provide Eligible Services, who request assistance or an assessment from Western Power in accordance with clause 4.24.18B;

$d$ timelines, developed in consultation with Western Power where applicable, for the provision of requested information and for assistance or an assessment of requests submitted; and

$e$ contact details for Western Power which must be used by AEMO or those applying to provide Eligible Services when assistance or assessment by Western Power is requested in accordance with clause

4.24.18B.

4.24.18A. Western Power must provide information and respond to requests

for assistance or assessment related to the provision of supplementary capacity under this section 4.24 in accordance with the WEM Procedure referred to in clause 4.24.18.

4.24.18B. A request to Western Power for assistance or an assessment by

those applying to provide Eligible Services or a request to Western Power by AEMO must:

$a$ be in writing and addressed to the contact nominated by Western Power in the WEM Procedure referred to in clause 4.24.18;

$b$ allow sufficient time to enable Western Power to provide the assistance or make the assessment requested in accordance with the timelines specified under clause 4.24.18(d); and

$c$ contain the information and analysis as may be required under the WEM Procedure referred to in clause 4.24.18.

4.24.19. Following each call for tenders for supplementary capacity or

otherwise acquiring Eligible Services, the Coordinator must review the supplementary capacity provisions of this section 4.24 with regard to the Wholesale Market Objectives and must undertake a public consultation process in respect of the outcome of the review.

Testing, Monitoring and Compliance

4.25. Reserve Capacity Testing

Explanatory Note

Clause 4.25.1 sets the Reserve Capacity testing obligations for either a Facility or Separately Certified Component depending on whether the Facility is required to install Facility Sub-Metering.

Clause 4.25.1(a), which now applies to all Scheduled Facilities or Semi-Scheduled Facilities, details the level of output a Non-Intermittent Generating System or Electric Storage Resource must demonstrate to meet their Reserve Capacity testing obligations. A Non-Intermittent Generating System and Electric Storage Resource must demonstrate this level of output at least once in both the Summer and Winter testing periods.

Clause 4.25.1(c) details the level of output a Demand Side Programme must demonstrate to meet their Reserve Capacity testing obligations in the Summer testing period only.

Clause 4.25.1A clarifies that an Intermittent Generating System or Non-Scheduled Facility does not hold Reserve Capacity testing obligations and therefore section 4.25 does not apply.

Clauses 4.25.3A and 4.25.9 are also amended by the Amending Rules contained in the Rule Change Panel's Final Report for Rule Change Proposal RC_2014_03 (Administrative Improvements to the Outage Process). However, as 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 Final Report for Rule Change Proposal RC_2014_03 (Administrative Improvements to the Outage Process) to see the changes that will commence on 29 June 2021 and apply until the relevant clauses in the Tranches 2 and 3 Amendments commence.

4.25.1. AEMO must take steps to verify, in accordance with clause

4.25.2, that each Facility or Separately Certified Component of a

Facility assigned Capacity Credits can:

$a$ in the case of a Non-Intermittent Generating System or an Electric Storage Resource, during the period the Reserve Capacity Obligations apply, operate at a level equivalent to its Required Level, adjusted to the level of Capacity Credits currently held by the Facility or Separately Certified Component, as applicable, at least once during each of the following periods:

i. 1 October to 31 March; and

ii. 1 April to 30 September,

which for a Non-Intermittent Generating System, must be achieved on each type of fuel detailed under clause 4.10.1(e)(v)(1)(ii); and

$b$ [Blank]

$c$ in the case of a Demand Side Programme, during the period the Reserve Capacity Obligations apply, other than a Trading Interval the subject of a Verification Test, decrease its consumption to operate at a level equivalent to its Required Level, adjusted to the level of Capacity Credits currently held, at least once during the period between 1 October to 31 March.

4.25.1A. Notwithstanding anything else in this section 4.25, clause

4.25.1 does not apply to an Intermittent Generating System or

Non-Scheduled Facility. To avoid doubt, an Intermittent Generating System or Non-Scheduled Facility is not subject to Reserve Capacity Tests under this section 4.25.

Explanatory Note

Clause 4.25.2(a) has been amended to verify the testing requirements for a Facility which is not required to install Facility Sub-Metering. AEMO must confirm both observation and scheduled testing results for the Facility using Meter Data Submissions.

Clause 4.25.2(e) has been amended to verify the testing requirements for a Facility which is required to install Facility Sub-Metering. AEMO must confirm both observation and scheduled testing results for the relevant Separately Certified component using a combination of Meter Data Submissions and Facility Sub-Metering data.

Clause 4.25.2(a)(i)(1) and 4.25.2(e)(i)(1) confirm that observation testing must be demonstrated for not less than two Trading Intervals for a Non-Intermittent Generating System. This change aligns with the existing scheduled testing requirements under clause 4.25.2(a)(ii)(1) and 4.25.2(e)(ii)(2) which is also two Trading Intervals.

Clause 4.25.2(a)(i)(2), 4.25.2(a)(ii)(2), 4.25.2(e)(i)(2) and ### 4.25.2(e)(ii)(2) confirm that observation testing and scheduled testing must be demonstrated for eight Trading Intervals for an Electric Storage Resource, known as the Electric Storage Resource Obligation Duration.

Clause 4.25.2(b) has been amended to reduce repetition with clause ### 4.25.1(c).

4.25.2. AEMO may verify the matters specified in clause 4.25.1 by:

$a$ in the case of a Facility that is not required to install Facility Sub-Metering in accordance with clause 2.29.12:

i. observing the Facility operate as part of normal market operations as determined from Meter Data Submissions for not less than:

1. for a Non-Intermittent Generating System, two consecutive Trading Intervals; or

2. for an Electric Storage Resource, the Electric Storage Resource Obligation Duration; or

ii. subject to clause 4.25.2B, testing, in accordance with clause

4.25.9, for not less than:

1. for a Non-Intermittent Generating System, two consecutive Trading Intervals; or

2. for an Electric Storage Resource, the Electric Storage Resource Obligation Duration,

and the Facility successfully passing that test as determined from Meter Data Submissions;

Explanatory Note

Clause 4.25.2(b)(i) was amended to remove the ability for a Market Customer to self-schedule a Reserve Capacity Test from the 2019 Reserve Capacity Cycle, as the test will be a random test scheduled by AEMO in accordance with clause 4.25.9.

The test period in clause 4.25.2(b)(ii) is two consecutive Trading Intervals.

$b$ in the case of a Demand Side Programme:

i. [Blank]

ii. testing, in accordance with clause 4.25.9, for not less than two consecutive Trading Intervals and the Facility successfully passing that test as determined from metered consumption;

$c$ [Blank]

$d$ [Blank]

$e$ in the case of a Facility required to install Facility Sub-Metering in accordance with clause 2.29.12:

i. observing the Facility operate, in respect of each Separately Certified Component, as part of normal operations as determined from Meter Data Submissions and meter data recorded by the Facility Sub-Metering, for not less than:

1. for a Non-Intermittent Generating System, two consecutive Trading Intervals; or

2. for an Electric Storage Resource, the Electric Storage Resource Obligation Duration; or

ii. subject to clause 4.25.2B, testing, in accordance with clause

4.25.9, in respect of each Separately Certified Component, as determined

from Meter Data Submissions and meter data recorded by the Facility Sub-Metering, for not less than:

1. for a Non-Intermittent Generating System, two consecutive Trading Intervals; or

2. for an Electric Storage Resource, the Electric Storage Resource Obligation Duration,

and that Separately Certified Component successfully passing the test.

Explanatory Note

Clause 4.25.2A has been amended to clarify the deadline by which Facility Sub-Metering data may be provided to AEMO to confirm whether the Separately Certified Component has passed the Reserve Capacity testing obligations by observation.

The deadline has been amended to ensure if a Market Participant tests on the 31 January, the last day of the observation period, they have five Business Days to provide AEMO with the Facility Sub-Metering data, this aligns with clause 4.25.2C.

4.25.2A. A Market Participant for a Facility required to install

Facility Sub-Metering in accordance with clause 2.29.12 may provide AEMO with meter data, recorded by Facility Sub-Metering, by:

$a$ 5 February, in respect of the immediately preceding period commencing 1 October; and

$b$ 5 August, in respect of the immediately preceding period commencing 1 April,

for the purposes of observing the Separately Certified Component in accordance with clause 4.25.2(e)(i).

Explanatory Note

Clause 4.25.2A has been amended to introduce a deadline for when AEMO will commence scheduling Reserve Capacity tests for Facilities which have failed to demonstrate their Required Level in the observation period. A Market Participant has four months for both the Summer and Winter testing periods to demonstrate through normal market operations that the Facility or Separately Certified Component can meet the Required Level. This deadline provides AEMO with two months to schedule Reserve Capacity tests if necessary.

AEMO will subject a Facility to a test where a Market Participant has failed to provide Facility Sub-Metering data, where applicable, or where a Facility or Separately Certified Component has failed to meet its Required Level in the observation period.

4.25.2B. AEMO must subject a Facility or Separately Certified Component

to a Reserve Capacity Test under clauses 4.25.2(a)(ii) or 4.25.2(e)(ii) where:

$a$ the Market Participant for the Facility, has not provided meter data, recorded by the Facility Sub-Metering to AEMO, where applicable, in accordance with and by the time specified in clause 4.25.2A;

$b$ AEMO has determined, in accordance with clauses 4.25.2(a)(i) or

4.25.2(e)(i), that the Facility or Separately Certified Component of the

Facility, as applicable, did not operate at the level specified in clause 4.25.1(a) by:

i. 31 January, in respect of the immediately preceding period 1 October to 31 January; and

ii. 31 July, in respect of the immediately preceding period 1 April to 31 July; or

$c$ AEMO is conducting a re-test in accordance with clauses 4.25.4 and

4.25.6.

Explanatory Note

Clause 4.25.2C has been amended to specify that all Facilities which are required to install Facility Sub-Metering must provide meter data to AEMO within five Business Days of a scheduled Reserve Capacity Test.

Clause 4.25.2D has been amended to specify that where Facility Sub-Metering was not provided in accordance with clause 4.25.2C, the Capacity Credits associated with the Separately Certified Component subject to the test will be reduced to zero.

4.25.2C. A Market Participant for a Facility required to install

Facility Sub-Metering in accordance with clause 2.29.12 that is tested by AEMO in accordance with clauses 4.25.2(e)(ii), 4.25.4 or 4.25.6 must provide meter data, recorded by Facility Sub-Metering, for the Reserve Capacity Test period to AEMO within five Business Days of the Reserve Capacity Test.

4.25.2D. Where the Market Participant does not provide meter data to

AEMO in accordance with and by the time specified in clause 4.25.2C, AEMO must reduce the Capacity Credits associated with the Separately Certified Component of the Facility subject to the Reserve Capacity Test to zero from the second Trading Day following the Scheduling Day on which AEMO determines the deadline for providing that meter data to AEMO under clause 4.25.2C.

4.25.2E. AEMO must, in assessing the performance of a Facility or

Separately Certified Component tested in accordance with clauses

4.25.2(a), 4.25.2(e), 4.25.4 or 4.25.6:

$a$ in the case of an Electric Storage Resource, measure the average performance across the Electric Storage Resource Obligation Duration based on the average performance across the eight Trading Intervals; and

$b$ in the case of a Non-Intermittent Generating System, measure the maximum performance in each Trading Interval.

4.25.3. AEMO must not subject a Facility to more Reserve Capacity Tests

than it considers are required to satisfy the verification requirements of this section 4.25.

Explanatory Note

Clause 4.25.3A is amended as a consequence of Consequential Outages being removed from the Outages framework, and to correct an existing drafting error with respect to the reference to ‘Opportunistic Outage’, which is not a term used in the current (or new) Outages frameworks.

Clause 4.25.3A is further amended to use the correct defined term, covering both approved Opportunistic and non-Opportunistic Outages

4.25.3A. AEMO must not subject a Facility to a Reserve Capacity Test if:

$a$ that Facility is subject to a Planned Outage, or

$b$ the relevant Market Participant has advised AEMO of a Forced Outage for that Facility in accordance with clause 3.21.2; or

$c$ that Facility is undergoing a Commissioning Test approved in accordance with section 3.21A.

Explanatory Note

Clause 4.25.4 is amended to set out AEMO’s obligations regarding the reduction of Capacity Credits where a storage facility or the storage component of a facility fails a Reserve Capacity Test.

Clause 4.25.4 links the 'automatic' re-test of a Demand Side Programme to new clause 4.25.4G which allows a Market Participant to 'opt out' of a re-test.

The second Reserve Capacity Test will need to take place within 30 days of the failed Reserve Capacity Test. Clause 4.25.4 provides for the re-test to occur not less than 14 days, and not more than 28 days, after the failed Reserve Capacity Test.

No changes are proposed to the current timeframes for re-testing DSPs from the 2019 Reserve Capacity Cycle.

4.25.4. Subject to clause 4.25.4G, if a Facility, or a Separately

Certified Component of a Facility, fails a Reserve Capacity Test requested by AEMO under clause 4.25.2, AEMO must re-test that Facility, or Separately Certified Component of that Facility, as applicable, in accordance with clause 4.25.2, not earlier than 14 days and not later than 28 days after the first Reserve Capacity Test. If the Facility, or Separately Certified Component of that Facility, as applicable, fails this second Reserve Capacity Test, then AEMO must, from the second Trading Day following the Scheduling Day on which AEMO determines that the second Reserve Capacity Test was failed:

$a$ if the Reserve Capacity Test related to a Non-Intermittent Generating System, reduce the number of Capacity Credits held by the relevant Market Participant for that Facility or Separately Certified Component of that Facility to reflect the maximum capabilities achieved in either Reserve Capacity Test performed, in accordance with 4.25.2E(b) (after adjusting these results to the equivalent values at a temperature of 41 degrees Celsius and allowing for the capability provided by operation on different types of fuels);

$b$ if the Reserve Capacity Test related to a Demand Side Programme, reduce the number of Capacity Credits held by the relevant Market Participant for that Facility to the maximum level of reduction achieved in either of the two Reserve Capacity Tests; or

$c$ if the Reserve Capacity Test related to an Electric Storage Resource, reduce the number of Capacity Credits held by the relevant Market Participant for that Facility or Separately Certified Component of that Facility to reflect the higher average performance achieved over the Electric Storage Resource Obligation Duration in either Reserve Capacity Test, in accordance with 4.25.2E(a) (after adjusting these results to performance at a temperature of 41 degrees Celsius).

4.25.4A A Market Participant may apply to AEMO for a reduction in the

number of Capacity Credits the Market Participant holds for a Facility.

Explanatory Note

Clause 4.25.4B(cA) has been amended to ensure an application under clause 4.25.4A includes information relating to how a Capacity Credit reduction will be split amongst multiple Separately Certified Component, if applicable.

4.25.4B. In order for an application under clause 4.25.4A to be assessed

by AEMO, it must:

$a$ be in writing;

$b$ relate to:

i. a Facility (other than a Demand Side Programme) for which AEMO has notified the Market Participant, in accordance with clause 4.13.14, of its determination that the need to maintain the Reserve Capacity Security for that Facility has ceased; or

ii. a Demand Side Programme that AEMO has determined is in Commercial Operation;

$c$ detail the reasons for the reduction in the number of Capacity Credits;

(cA) where the Facility contains multiple Separately Certified Components, specify how the reduction in the number of Capacity Credits relates to each Separately Certified Component; and

$d$ indicate whether the application relates only to the current Capacity Year or includes subsequent Capacity Years.

4.25.4C. Upon receiving an application under clause 4.25.4A, AEMO must,

subject to clause 4.25.4CA:

$a$ assess the application and any supporting documentation;

$b$ within 10 Business Days of receiving the application inform the Market Participant of its decision whether to reduce the Capacity Credits and the reasons for its decision; and

$c$ if applicable and in AEMO's sole discretion, reduce the amount of Capacity Credits held by the Market Participant in respect of the Facility, or Separately Certified Component of the Facility, to which the application relates.

Explanatory Note

From the 2019 Reserve Capacity Cycle, Market Participants with DSPs will be able to bilaterally trade the Capacity Credits assigned to their DSPs. Consequently, clause 4.25.4CA was amended accordingly.

Amendments also made to clause 4.25.4CA for weekly settlement.

4.25.4CA. AEMO must not approve an application received under clause

4.25.4A if the reduction of Capacity Credits for the relevant Facility

would result in the number of Capacity Credits for the Facility allocated by the relevant Market Participant in Capacity Credit Allocations for a Trading Day exceeding the number of Capacity Credits for the Facility held for that Trading Day by the Market Participant that are able to be traded bilaterally under the WEM Rules.

4.25.4D A Market Participant may not apply to AEMO for an increase in

the number of Capacity Credits for a Facility during a Capacity Year if the Facility has had its Capacity Credits reduced in accordance with clause 4.25.4C for any part of that Capacity Year.

4.25.4E. [Blank]

4.25.4F. A Market Participant may not offer a Demand Side Programme for

Supplementary Capacity if the Demand Side Programme has had its Capacity Credits reduced in accordance with clause 4.25.4C for any part of that Capacity Year.

Explanatory Note

A Market Participant may elect to 'opt out' of a second Reserve Capacity Test by giving notice to AEMO, in which case AEMO will reduce the level of Capacity Credits for the DSP to the level the DSP achieved in the (failed) first Reserve Capacity Test.

4.25.4G. A Market Participant may, for a Demand Side Programme that

failed a Reserve Capacity Test requested by AEMO under clause 4.25.2, elect not to subject the relevant Demand Side Programme to a second Reserve Capacity Test in accordance with clause 4.25.4 by providing notice to AEMO in accordance with clause 4.25.4H.

Explanatory Note

A Market Participant may elect to 'opt out' of a second Reserve Capacity Test by giving notice to AEMO.

The purpose of clause 4.25.4H is to prescribe the date and time by which the notice must be given by a Market Participant to AEMO.

4.25.4H. A notification provided under clause 4.25.4G must be given to

AEMO by 5:00 PM on the second Business Day after receiving notification from AEMO that the relevant Demand Side Programme failed the Reserve Capacity Test requested by AEMO under clause 4.25.2.

Explanatory Note

A Market Participant may elect to 'opt out' of a second Reserve Capacity Test by giving notice to AEMO in accordance with clause ### 4.25.4H.

Upon receipt of such a notice, clause 4.25.4I is to require AEMO to reduce the Capacity Credits for a Market Participant who elected to 'opt out' of a second Reserve Capacity Test to the maximum level of the reduction achieved in the Reserve Capacity Test.

4.25.4I. If a notification is given under clause 4.25.4G in accordance

with clause 4.25.4H, AEMO must reduce the Capacity Credits for the relevant Demand Side Programme to the maximum level of reduction achieved in the Reserve Capacity Test conducted in accordance with clause 4.25.2.

4.25.5. In the event that the number of Capacity Credits held by a

Market Participant is reduced during a Capacity Year in accordance with clause 4.25.4, then that Market Participant may request once prior to the end of the Capacity Year that AEMO perform a single re-test to be conducted for the Facility, or a Separately Certified Component of the Facility, during the seven days following that request.

4.25.6. If AEMO receives a request for a Reserve Capacity re-test in

accordance with clause 4.25.5, then:

$a$ if the re-test relates to a Non-Intermittent Generating System, AEMO must conduct such a re-test in accordance with clauses

4.25.2(a)(ii) or 4.25.2(e)(ii) and, following the re-test, set the

number of Capacity Credits held by the relevant Market Participant for the Facility or Separately Certified Component of the Facility to reflect the maximum capabilities achieved in the re-test (after adjusting these results to the equivalent values at a temperature of 41 degrees Celsius and allowing for the capability provided by operation on different types of fuel), but not to exceed the number of Capacity Credits originally confirmed by AEMO for the Facility or Separately Certified Component of the Facility under section 4.20 in respect of the relevant Reserve Capacity Cycle;

$b$ if the re-test relates to a Demand Side Programme, AEMO must conduct such a re-test in accordance with clause 4.25.2(b)(ii) and, following the re-test, set the number of Capacity Credits held by the relevant Market Participant for the Facility to reflect the maximum reduction in its consumption achieved in the re-test, but not to exceed the number of Capacity Credits originally confirmed by AEMO for the Facility under clause 4.20.5A(a) in respect of the relevant Reserve Capacity Cycle; and

$c$ if the re-test relates to an Electric Storage Resource, AEMO must conduct such a re-test in accordance with clauses 4.25.2(a)(ii) or

4.25.2(e)(ii) and, following the re-test, set the number of Capacity

Credits held by the relevant Market Participant for the Facility or Separately Certified Component of the Facility to higher average performance achieved over the Electric Storage Resource Obligation Duration in the re-test (after adjusting these results to performance at a temperature of 41 degrees Celsius) but not to exceed the number of Capacity Credits originally confirmed by AEMO for the Facility or Separately Certified Component of the Facility under section 4.20 in respect of the relevant Reserve Capacity Cycle.

4.25.7. [Blank]

4.25.8. [Blank]

Explanatory Note

Clause 4.25.9(h) is amended as a consequential amendment resulting from the removal of Operating Instructions.

The "summer" Reserve Capacity Test for a DSP will be a random test with AEMO required to give 2 hours' notice.

AEMO is required to schedule a random test of a DSP by giving two hours' notice to the relevant Market Participant. In practical terms, AEMO is unlikely to be able to give precisely two hours' notice, so a range has been included at clause 4.25.9(dA).

Clause 4.25.9 is further amended as a result of Consequential Outages no longer being applicable. The wording has been revised to be relevant to a Network limitation, which may require AEMO to confirm details after the fact with a Network Operator if it does not have visibility of the Network limitation.

Since the consultation period for Exposure Draft 2 clause 4.25.9(e) has been further amended to:

clarify that the network limitations relate to outages of Network equipment and do not include “system normal” constraints; and
allow AEMO to discard the results of a Reserve Capacity Test that it determines was invalid.

4.25.9. In conducting a Reserve Capacity Test, AEMO must:

$a$ subject to clauses 4.25.9(b), 4.25.9(c) and 4.25.9(dA), endeavour to conduct the Reserve Capacity Test without warning;

$b$ allow sufficient time for the Market Participant to schedule fuel that it is not required under these WEM Rules to be stored on-site;

$c$ allow sufficient time for switching a Facility from one fuel to an alternative fuel if operation using the alternative fuel is being tested;

$d$ [Blank]

(dA) in the case of a Demand Side Programme, give at least two hours' and no more than three hours' notice to allow for arrangements to be made for the Facility to be triggered;

$e$ deem the Reserve Capacity Test to be cancelled and discard the results if:

i. the Facility is constrained during the test period because of an outage of an item of equipment that is part of a Network; or

ii. AEMO determines that the Reserve Capacity Test was invalid in accordance with the WEM Procedure referred to in clause 4.25.14;

$f$ maintain adequate records of the Reserve Capacity Test to allow independent verification of the test results including the level of Injection or Withdrawal required during the Reserve Capacity Test; and

$g$ [Blank]

$h$ notify the Market Participant of the time that the Reserve Capacity Test must be performed, and the level of output required by the Separately Certified Component or level of Injection or Withdrawal required by the Facility for the Reserve Capacity Test, as applicable.

4.25.10. [Blank]

4.25.11. Every three months AEMO must publish details of:

$a$ Facilities that have undergone a Reserve Capacity Test during the preceding three months; and

$b$ whether any of those Reserve Capacity Tests were delayed and the reasons for the delay.

4.25.12. AEMO may use the results of Reserve Capacity Tests in respect

of a Facility in assigning Certified Reserve Capacity for the Facility for subsequent Reserve Capacity Cycles.

4.25.13. [Blank]

4.25.14. AEMO must document the procedure to be followed in performing

Reserve Capacity Tests in a WEM Procedure, including the situations in which AEMO may deem a Reserve Capacity Test to be invalid.

Explanatory Note

The "summer" Reserve Capacity Test will be a random Reserve Capacity Test from the 2019 Reserve Capacity Cycle.

Section 4.25A deals with Verification Tests for DSPs, so no changes to this clause are required. However, for clarity, clause 4.25A.5 was amended to specify what happens when a DSP passes a second Verification Test.

4.25A. Verification Test for a Demand Side Programme

4.25A.1. In each Capacity Year each Market Participant must undertake a

Verification Test during the period specified in clause 4.10.1(f)(vi) for each Demand Side Programme registered to the Market Participant. Each test must be conducted in accordance with the WEM Procedure specified in clause 4.25.14 and be carried out:

$a$ within 20 Business Days of registration, as notified by AEMO under clause 2.31.6, of the Demand Side Programme, if applicable; or

$b$ between 1 October and 30 November.

4.25A.2. To undertake a Verification Test a Market Participant must

activate the Demand Side Programme and provide evidence satisfactory to AEMO of the Trading Intervals during which the Verification Test was conducted.

4.25A.3. A Demand Side Programme will be deemed to have failed the

Verification Test unless a reduction in demand equal to at least 10% of the Capacity Credits, when measured against the Demand Side Programme’s Relevant Demand determined under clause 4.26.2CA, is identified from the Demand Side Programme Load associated with that Demand Side Programme.

4.25A.4. Where a Demand Side Programme fails a Verification Test AEMO

must reduce the Capacity Credits assigned to the Demand Side Programme to zero from the second Trading Day following the Scheduling Day on which AEMO determines that the Verification Test was failed under clause

4.25A.3.

4.25A.5. Where a Demand Side Programme fails a Verification Test the

relevant Market Participant may request that a second Verification Test be undertaken. If the Demand Side Programme:

$a$ fails the second Verification Test then the Capacity Credits assigned to the Demand Side Programme are to remain at zero until the end of the relevant Capacity Year; or

$b$ does not fail the second Verification Test, from the second Trading Day following the Scheduling Day on which the second Verification Test was performed, the Capacity Credits assigned to the Demand Side Programme are to be increased to the value applied to the Demand Side Programme immediately prior to the first Verification Test.

4.26. Financial Implications of Failure to Satisfy Reserve Capacity Obligations

Explanatory Note

Clause 4.26.1 is amended to account for the change to weekly settlement, and to better distinguish between Registered Facilities and non-Registered Facilities.

Clause 4.26.1 specifically relates to Market Participants holding Capacity Credits associated with a Facility. Market Participants do not hold Capacity Credits for Intermittent Loads, but some of the same quantities are required to calculate Intermittent Load Refunds. These calculations have been moved to section 4.28A.

4.26.1. If a Market Participant holding Capacity Credits associated with

a Facility fails to comply with its Reserve Capacity Obligations applicable to any given Trading Interval then the Market Participant must pay a refund to AEMO calculated in accordance with the following provisions.

$a$ The Trading Interval Refund Rate for a Facility f in the Trading Interval t is determined as follows:

Trading Interval Refund Rate(f,t)=RF(f,t) × Y(f,t)

where:

i. Trading Interval Refund Rate (f,t) is the Trading Interval Refund Rate for a Facility f in the Trading Interval t;

ii. RF(f,t) is the refund factor for a Facility f in the Trading Interval t and is calculated in accordance with clause 4.26.1(c); and

iii. Y(f,t) is the per Trading Interval capacity price associated with a Facility f in the Trading Interval t and is determined in accordance with clause 4.26.1(b).

$b$ For a Facility f, for which a Market Participant holds Capacity Credits, in the Trading Interval t, Y(f,t) is determined as follows:

i. where Facility f is not a Registered Facility in Trading Interval t, Y(f,t) equals the Facility Monthly Reserve Capacity Price for the Facility divided by the number of Trading Intervals in the Trading Month in which Trading Interval t falls;

ii. where AEMO has determined that in Trading Interval t Facility f is not in Commercial Operation and is either a Scheduled Facility or Semi-Scheduled Facility, Y(f,t) equals the Facility Monthly Reserve Capacity Price for the Facility divided by the number of Trading Intervals in the Trading Month in which Trading Interval t falls;

iii. where AEMO has determined that in Trading Interval t Facility f is in Commercial Operation and is either a Scheduled Facility or Semi-Scheduled Facility, Y(f,t) is defined as:

\[Y(f,\\t) = \frac{CCESR(f,\\t)}{CC(f,\\t)} \times \frac{FMRCP(f,\\t)}{8 \times TDTM(t)} + \frac{CC(f,\\t) - CCESR(f,\\t)}{CC(f,\\t)} \times \frac{FMRCP(f,\\t)}{TITM(t)}\]

where:

1. CCESR(f,t) is the number of Capacity Credits held by Facility f associated with Separately Certified Components of Facility f which are Electric Storage Resources if Trading Interval t is within the Electric Storage Resource Obligation Intervals for the Trading Day, and 0 otherwise;

2. CC(f,t) is the total Capacity Credits held by Facility f in Trading Interval t;

3. FMRCP(f,t) is the Facility Monthly Reserve Capacity Price for Facility f in Trading Interval t;

4. TDTM(t) is the number of Trading Days in the Trading Month in which Trading Interval t falls; and

5. TITM(t) is the number of Trading Intervals in the Trading Month in which Trading Interval t falls;

iv. where Facility f is a Non-Scheduled Facility, Y(f,t) equals the Facility Monthly Reserve Capacity Price for the Facility divided by the number of Trading Intervals in the relevant Trading Month in which Trading Interval t falls; and

v. where Facility f is a Demand Side Programme, Y(f,t) equals the Reserve Capacity Price for the Facility divided by 400.

$c$ The refund factor RF(f,t) for a Facility f in the Trading Interval t is the lesser of:

i. six; and

ii. the greater of the dynamic refund factor RF dynamic(t) as determined under clause 4.26.1(d) and the minimum refund factor RFfloor(f,t) as determined under clauses 4.26.1(f) or 4.26.1(g) as appropriate.

$d$ The dynamic refund factor RF dynamic(t) in the Trading Interval t is determined as follows:

\[\text{RF\\dynamic}\left( \text{t} \right)\text{\\}\text{=}\text{\\}\text{11.75}\text{\\}\text{-}\text{\\}\text{(}\\\frac{\text{5.75}}{\text{750}}\text{)}\text{\\}\text{×}\text{\\}\sum\_{\text{f}\text{∈}\text{F}}^{}\text{Spare(f,t)}\]

where:

i. F is the set of all Registered Facilities for which Market Participants hold Capacity Credits in the Trading Interval t and f is a Facility within that set; and

ii. Spare(f,t) is the available capacity related to the Registered Facility f, which is not dispatched in the Trading Interval t determined in accordance with clause 4.26.1(e).

$e$ For a Registered Facility f in the Trading Interval t, Spare(f,t) is determined as follows:

i. where Facility f is a Scheduled Facility, the greater of zero and:

1. the Reserve Capacity Obligation Quantity determined for the Facility f in Trading Interval t; less

2. the Capacity Adjusted Forced Outage Quantity for Facility f in Trading Interval t calculated in 3.21.7B; less

3. the Sent Out Metered Schedule for Facility f in Trading Interval t multiplied by two so as to be a MW quantity;

iA. where Facility f is a Semi-Scheduled Facility, the greater of zero and:

1. the Reserve Capacity Obligation Quantity determined for Facility f in Trading Interval t; less

2. the Capacity Adjusted Forced Outage Quantity for Facility f in Trading Interval t calculated in 3.21.7B; less

3. the Sent Out Metered Schedule for Facility f in Trading Interval t multiplied by two so as to be a MW quantity;

ii. where Facility f is a Non-Scheduled Facility, zero; and

iii. where Facility f is a Demand Side Programme in the Trading Interval t, Spare(f,t) is equal to:

max{0,min(RCOQ(f,t), (DSP Load(f,t) - DSP MinLoad(f,t)))}

where:

1. [Blank]

2. RCOQ(f,t) is the Reserve Capacity Obligation for the Demand Side Programme f in the Trading Interval t;

3. DSP Load(f,t) is the Demand Side Programme Load for the Demand Side Programme f in the Trading Interval t as determined under clause 9.5.4 multiplied by two so as to be a MW quantity; and

4. DSP MinLoad(f,t) is the sum of the Minimum Consumption of each Associated Load of the Demand Side Programme f in MW in the Trading Interval t.

$f$ Subject to clause 4.26.1(g), the minimum refund factor RF floor(f,t) in the Trading Interval t is determined as follows:

RF floor(f,t) = 1 - 0.75 × Dispatchable(f,t)

where:

i. Dispatchable(f,t) for a Facility f in the Trading Interval t is its portion of capacity which is not subject to a Forced Outage over the 4320 previous Trading Intervals pt prior to and including the Trading Interval t, where this is equal to one in the Trading Interval if no Capacity Credits are held by the Facility in any of the 4320 previous Trading Intervals, determined as follows:

\[\text{Dispatchable}\left( \text{f,t} \right)\text{\\}\text{=}\text{\\}\text{1}\text{\\}\text{-}\text{\\}\text{(}\frac{\sum\_{\text{pt}\text{∈}\text{PT}}^{}{\text{CAFO}\left( \text{f,pt} \right)}}{\sum\_{\text{pt}\text{∈}\text{PT}}^{}{\text{CC}\left( \text{f,pt} \right)}}\text{)}\]

where:

1. PT is the set of 4320 Trading Intervals immediately prior to and including the Trading Interval t and pt is a Trading Interval within that set;

2. CAFO(f,pt) is the Capacity Adjusted Forced Outage Quantity for Facility f in the Trading Interval pt, as determined in accordance with clause 3.21.7B; and

3. CC(f,pt) is the number of Capacity Credits a Market Participant holds for Facility f in the Trading Interval pt; and

$g$ RF floor(f,t) is equal to one in the Trading Interval t for a Facility f to which any of the following applies:

i. the Facility f is a Demand Side Programme; or

ii. the Facility f is not a Registered Facility or AEMO has deemed the Facility to not be in Commercial Operation in the Trading Interval t.

Explanatory Note

Clause 4.26.1A is amended to use the new registration taxonomy and to extend the triggers for the payment of Capacity Cost Refunds.

In the new WEM, a Scheduled Facility, Semi-Scheduled Facility or Non-Scheduled Facility in Commercial Operation may incur a Facility Reserve Capacity Deficit Refunds if:

the Facility is subject to a Forced Outage or Refund Payable Planned Outage;
the Market Participant does not include enough capacity for the Facility in its Real‑Time Market Offers;
the Market Participant offers the Facility’s capacity as ‘Available’ in its Real-Time Market Offers when it is required to be offered as ‘In-Service’; or
the Facility contains an Electric Storage Resource with a charge level that is insufficient to meet its Reserve Capacity Obligations.

The total contribution of these events to a Facility’s Reserve Capacity Deficit (Real-Time Market Reserve Capacity Deficit) is calculated under new clause 4.26.1B.

Clause 4.26.1A is further amended to ensure that Non-Scheduled Facilities (which do not have Separately Certified Components) incur Facility Reserve Capacity Deficit Refunds if they are in Commercial Operation but have not yet demonstrated they can meet their Required Level.

4.26.1A. AEMO must calculate the Reserve Capacity Deficit refund for

each Facility f, for which a Market Participant holds Capacity Credits, (“Facility Reserve Capacity Deficit Refund”) in each Trading Interval t as the lesser of:

$a$ the product of:

i. the Trading Interval Refund Rate, calculated under clause 4.26.1(a), applicable to Facility f in Trading Interval t; and

ii. the Reserve Capacity Deficit for Facility f in Trading Interval t, where the Reserve Capacity Deficit for Facility f in Trading Interval t is equal to whichever of the following applies:

1. if Facility f is not a Registered Facility then the number of Capacity Credits associated with Facility f in Trading Interval t;

2. if Facility f is considered by AEMO to have not been in Commercial Operation in Trading Interval t and is either a Scheduled Facility, a Semi-Scheduled Facility or a Non-Scheduled Facility, the number of Capacity Credits associated with Facility f;

3. if Facility f is considered by AEMO to have been in Commercial Operation in Trading Interval t and is either a Scheduled Facility or a Semi-Scheduled Facility:

min(CCIG(f,t), max(0, min(RL(f,t)−2 × MAX2(f,t), RL(f,t)−A(f,t)))) + RTMRCD(f,t)

where:

i. CCIG(f,t) is the number of Capacity Credits held for Facility f associated with Separately Certified Components of Facility f which are Intermittent Generating Systems of the Facility in Trading Interval t;

ii. RL(f,t) is the Required Level for Facility f, adjusted to 100 percent of the level of Capacity Credits held for Facility f in Trading Interval t;

iii. MAX2(f,t) is the second highest value of the output for Facility f (in MWh) achieved for a Trading Interval during the Trading Day in which Trading Interval t falls, as measured in Meter Data Submissions received by AEMO in accordance with section 8.4, that has been achieved since the date AEMO determined the Facility to be in Commercial Operation up to the relevant Trading Day, where this value must be set equal to or greater than the Max2 applied by AEMO for the previous Trading Day;

iv. A(f,t) is the level of output (in MW) detailed in the most recent report provided prior to Trading Interval t by the Market Participant for Facility f under clause 4.13.10C; and

v. RTMRCD(f,t) is the Real-Time Market Reserve Capacity Deficit determined for Facility f in Trading Interval t under clause 4.26.1B;

4. if Facility f is considered by AEMO to have been in Commercial Operation in Trading Interval t and is a Non‑Scheduled Facility:

min(CC(f,t), max(0, min(RL(f,t)−2 × MAX2(f,t), RL(f,t)−A(f,t))))

where:

i. CC(f,t) is the number of Capacity Credits held for Facility f in Trading Interval t;

ii. RL(f,t) is the Required Level for Facility f, adjusted to 100 percent of the level of Capacity Credits held for Facility f in Trading Interval t;

iii. MAX2(f,t) is the second highest value of the output for Facility f (in MWh) achieved for a Trading Interval during the Trading Day in which Trading Interval t falls, as measured in Meter Data Submissions received by AEMO in accordance with section 8.4, that has been achieved since the date AEMO determined the Facility to be in Commercial Operation up to the relevant Trading Day, where this value must be set equal to or greater than the Max2 applied by AEMO for the previous Trading Day; and

iv. A(f,t) is the level of output (in MW) detailed in the most recent report provided prior to Trading Interval t by the Market Participant for Facility f under clause 4.13.10C; and

5. if Facility f is a Demand Side Programme, the capacity shortfall calculated as:

max (0, RCOQ(f,t) − max(0, (RD(f,t) − DSPMinLoad(f,t))))

where:

i. RCOQ(f,t) is the Reserve Capacity Obligation Quantity determined for Facility f in Trading Interval t;

ii. RD is the Relevant Demand for Facility f in Trading Interval t as determined in accordance with clause 4.26.2CA; and

iii. DSPMinLoad is the sum of the MW quantities of Minimum Consumption for Facility f’s Associated Loads in Trading Interval t; and

$b$ the Maximum Facility Refund for the Facility in the relevant Capacity Year, less all Facility Reserve Capacity Deficit Refunds applicable to the Facility in previous Trading Intervals falling in the same Capacity Year.

Explanatory Note

Clause 4.26.1B sets out the calculation for the Real-Time Market Reserve Capacity Deficit for a Facility for a Trading Interval. For Scheduled Facilities and Semi-Scheduled Facilities, the Real-Time Market Reserve Capacity Deficit is the lesser of the Facility’s RCOQ and the sum of the following quantities:

Capacity Adjusted Forced Outage Quantity;
Not In-Service Capacity Refund Quantity;
ESR Charge Shortfall;
Real-Time Market Offer Shortfall;
Refund Payable Planned Outage quantity for Non-Intermittent Generating Systems; and
Refund Payable Planned Outage quantity for Electric Storage Resources.

Clause 4.26.1B is further amended to remove references to Non-Scheduled Facilities because the proposed changes to clause 4.26.1A remove the need to calculate a Real-Time Market Reserve Capacity Deficit value for a Non-Scheduled Facility.

Clauses 4.26.1B, 4.26.1C and 4.26.1CA are amended to:

replace the terms ‘Refund Exempt Planned Outage’ and ‘Refund Payable Planned Outage’ with ‘Refund Exempt Planned Outage Quantity’ and ‘Refund Payable Planned Outage Quantity’, to clarify that AEMO’s determinations apply to Capacity Adjusted Planned Outage Quantities rather than Planned Outages;
clarify that clause 4.26.1C applies to Separately Certified Components that are Non‑Intermittent Generating Systems, while clause ### 4.26.1CA applies to Separately Certified Components that are Electric Storage Resources; and
clarify that a Refund Exempt Planned Outage Count is calculated for a Separately Certified Component and a period of time.

4.26.1B. AEMO must calculate the Real-Time Market Reserve Capacity

Deficit for each Scheduled Facility or Semi-Scheduled Facility f for each Trading Interval t in which AEMO considers the Facility to have been in Commercial Operation as:

RTMRCD(f,t) = min (RCOQ(f,t), CAFO(f,t)+NISCRQ(f,t)+ESRCSF(f,t)+RTMOSF(f,t)) + NIMGRPPO(f,t) + ESRRPPO(f,t)

where:

$a$ RCOQ(f,t) is the Reserve Capacity Obligation Quantity determined for Facility f in Trading Interval t;

$b$ CAFO(f,t) is the Capacity Adjusted Forced Outage Quantity determined for Facility f in Trading Interval t under clause 3.21.7B;

$c$ NISCRQ(f,t) is the Not In-Service Capacity Refund Quantity determined for Facility f in Trading Interval t under clause 4.26.1D;

$d$ ESRCSF(f,t) is the ESR Charge Shortfall determined for Facility f in Trading Interval t under clause 4.26.1E;

$e$ RTMOSF(f,t) is the Real-Time Market Offer Shortfall determined for Facility f in Trading Interval t under clause 4.26.1G;

$f$ NIMGRPPO(f,t) is the total Refund Payable Planned Outage Quantity determined for Separately Certified Components of Facility f which are Non‑Intermittent Generating Systems in Trading Interval t under clause

4.26.1C; and

$g$ ESRRPPO(f,t) is the total Refund Payable Planned Outage Quantity determined for Separately Certified Components of Facility f which are Electric Storage Resources in Trading Interval t under clause 4.26.1CA.

4.26.1C. If the Capacity Adjusted Planned Outage Quantity in a Trading

Interval for a Separately Certified Component of a Scheduled Facility or Semi-Scheduled Facility which is a Non‑Intermittent Generating System is greater than zero, then AEMO must determine that Capacity Adjusted Planned Outage Quantity to be:

$a$ if the Refund Exempt Planned Outage Count for the Separately Certified Component, calculated over the 1000 Trading Days preceding the Trading Day in which the Trading Interval falls, is less than 8400, a Refund Exempt Planned Outage Quantity; or

$b$ otherwise, a Refund Payable Planned Outage Quantity.

Explanatory Note

Clause 4.26.1CA sets out the requirements for classifying Planned Outages of storage facilities or Facilities containing a storage component as liable or exempt from refunds. See also the Explantory Note to clause 4.26.1B.

4.26.1CA. If the Capacity Adjusted Planned Outage Quantity in a Trading

Interval for a Separately Certified Component of a Scheduled Facility or Semi-Scheduled Facility which is an Electric Storage Resource is greater than zero, then AEMO must determine that Capacity Adjusted Planned Outage Quantity to be:

$a$ if the Refund Exempt Planned Outage Count for the Separately Certified Component, calculated over the 1000 Trading Days preceding the Trading Day in which the Trading Interval falls, is less than 1400, a Refund Exempt Planned Outage Quantity; or

$b$ otherwise, a Refund Payable Planned Outage Quantity.

Explanatory Note

Clause 4.26.1D requires AEMO to calculate Not In-Service Capacity Refund Quantities for each Trading Interval for each Scheduled Facility or Semi-Scheduled Facility in Commercial Operation. The calculation caps the Not In-Service Capacity quantities that are determined under clause 7.13A.1 for each Dispatch Interval to ensure that total refund quantities do not exceed the Facility’s RCOQ, and then averages the resulting values to produce a Trading Interval quantity.

4.26.1D. AEMO must calculate the Not In-Service Capacity Refund Quantity

for each Scheduled Facility or Semi-Scheduled Facility f for each Trading Interval t in which AEMO considers the Facility to have been in Commercial Operation as:

NISCRQ(f,t) = $\frac{\sum\_{DI \in t}^{}{(min\left( RCOQ(f,DI) - \\CAFO(f,DI),\\\\\\NISCap(f,DI) \right))}}{6}\\\\$

where:

$a$ RCOQ(f,DI) is the Reserve Capacity Obligation Quantity determined for Facility f in Dispatch Interval DI;

$b$ CAFO(f,DI) is the Capacity Adjusted Forced Outage Quantity determined for Facility f in Dispatch Interval DI under clause 3.21.7C;

$c$ NISCap(f,DI) is the Not In-Service Capacity quantity determined for Facility f in Dispatch Interval DI under clause 7.13A.1; and

$d$ DI∈t denotes all Dispatch Intervals DI in Trading Interval t.

Explanatory Note

Clause 4.26.1E requires AEMO to calculate ESR Charge Shortfall quantities for each Trading Interval for each Scheduled Facility or Semi-Scheduled Facility in Commercial Operation. The Dispatch Interval shortfall quantities that are determined under clause 4.26.1F for each Electric Storage Resource are used to calculate a Trading Interval quantity for the Facility.

4.26.1E. AEMO must calculate the ESR Charge Shortfall for each Scheduled

Facility or Semi-Scheduled Facility f for each Trading Interval t in which AEMO considers the Facility to have been in Commercial Operation as:

ESRChargeShortfall(f,t) = $\frac{\sum\_{\text{DI}\text{∈}\text{t}}^{}{\sum\_{c \in f}^{}\text{ESRCSF(c,DI)}}}{\text{6}}\text{\\}$

where:

$a$ ESRCSF(c,DI) is the capacity shortfall in MW determined for Separately Certified Component c in Dispatch Interval DI under clause

4.26.1F;

$b$ DI∈t denotes all Dispatch Intervals DI in Trading Interval t; and

$c$ c∈f denotes all Separately Certified Components c of Facility f that are Electric Storage Resources.

Explanatory Note

Clause 4.26.1F specifies the ESR charge shortfall calculation for a single Separately Certified Component for a Dispatch Interval. The calculation is capped to ensure that total refund quantities do not exceed the Electric Storage Resource’s RCOQ.

4.26.1F. ESRCSF(c,DI) for Separately Certified Component c (which is an

Electric Storage Resource) for Dispatch Interval DI is:

ESRCSF(c,DI) = max(0,RCOQ(c,DI)−CAFO(c,DI)−12×max(0,ChargeLevel(c,DI)−MinChargeLevel(c,DI)))

where:

$a$ RCOQ(c,DI) is the Reserve Capacity Obligation Quantity determined for Separately Certified Component c in Dispatch Interval DI;

$b$ CAFO(c,DI) is the Capacity Adjusted Forced Outage Quantity determined for Separately Certified Component c in Dispatch Interval DI under clause 3.21.7;

$c$ ChargeLevel(c,DI) is the Charge Level in MWh, or alternative estimate from AEMO where the Charge Level is not available, of Separately Certified Component c determined at the start of Dispatch Interval DI; and

$d$ MinChargeLevel(c,DI) is the minimum Charge Level capability in MWh as specified in Standing Data for Separately Certified Component c in Dispatch Interval DI.

Explanatory Note

In the new WEM, Market Participants must offer adequate capacity into the Real-Time Market to cover the RCOQ for their Registered Facilities. Clause 4.26.1G requires AEMO to calculate Real‑Time Market Offer Shortfall quantities for each Trading Interval for each Scheduled Facility or Semi-Scheduled Facility in Commercial Operation. The calculation converts the Dispatch Interval shortfall quantities calculated for a Facility under clause 4.26.1H to a Trading Interval quantity, which is then capped to ensure that total refund quantities do not exceed the Facility’s RCOQ.

Industry feedback expressed the view that including real-time offer shortfall calculations was not required as the requirement to lodge a Forced Outage was still in place. It is correct that if a Forced Outage is lodged no refund would apply under this calculation, but including consideration of offer shortfalls means the shortfall will immediately be reflected in settlement regardless of the timing or action of the outage.

4.26.1G. AEMO must determine the shortfall in Reserve Capacity offered

into the Real‑Time Market (“Real-Time Market Offer Shortfall”) for each Scheduled Facility or Semi-Scheduled Facility f for each Trading Interval t in which AEMO considers the Facility to have been in Commercial Operation as:

\[{RTMOSF(f,t) = \\ }{\\\\\\\\\\\\\\\\\\\\max\left( 0,\frac{\sum\_{\text{DI∈t}}^{}{RTMOSF(f,DI)}}{6} - CAFO(f,t) - NISCRQ(f,t) - ESRCSF(f,t) \right)}\]

where:

$a$ RTMOSF(f,DI) is the shortfall in Reserve Capacity offered into the Real‑Time Market determined for Facility f in Dispatch Interval DI under clause 4.26.1H;

$b$ CAFO(f,t) is the Capacity Adjusted Forced Outage Quantity determined for Facility f in Trading Interval t under clause 3.21.7B;

$c$ NISCRQ(f,t) is the Not In-Service Capacity Refund Quantity determined for Facility f in Trading Interval t under clause 4.26.1D; and

$d$ ESRCSF(f,t) is the ESR Charge Shortfall determined for Facility f in Trading Interval t under clause 4.26.1E.

4.26.1H. RTMOSF(f,DI) for Facility f in Dispatch Interval DI is:

RTMOSF(f,DI) = max(0,RCOQ(f,DI) − OfferAvail(f,DI))

where:

$a$ RCOQ(f,DI) is the Reserve Capacity Obligation Quantity determined for Facility f in Dispatch Interval DI; and

$b$ OfferAvail(f,DI) is the total MW quantity included in Real-Time Market Offers for energy from Facility f in Dispatch Interval DI (whether offered as Available Capacity or In-Service Capacity) that were used to calculate Dispatch Instructions and Market Clearing Prices for that Dispatch Interval.

Explanatory Note

The obligation on AEMO to calculate Generation Reserve Capacity Deficit Refunds is moved from clause 4.26.1B to clause 4.26.1I.

Clause 4.26.1I is amended to clarify that the Generation Reserve Capacity Deficit Refund calculation for a Market Participant includes any Facility Reserve Capacity Deficit Refunds for unregistered Facilities with an indicative Facility Class of Scheduled Facility, Semi-Scheduled Facility or Non-Scheduled Facility.

4.26.1I. AEMO must calculate the Generation Reserve Capacity Deficit

Refund for each Market Participant for each Trading Interval as the sum of the Facility Reserve Capacity Deficit Refunds for the Trading Interval for each Facility with a Facility Class (or, for an unregistered Facility, an indicative Facility Class) of Scheduled Facility, Semi-Scheduled Facility or Non-Scheduled Facility, for which the Market Participant holds Capacity Credits in the Trading Interval.

Explanatory Note

Clause 4.26.1J requires a Market Participant to report a Forced Outage where a Scheduled Facility or Semi-Scheduled Facility (with an RCOQ greater than zero) has not complied with a Dispatch Instruction.

The obligation to report a Forced Outage has been extended to cover Semi-Scheduled Facilities that contain an Electric Storage Resource or Non-Intermittent Generating System, where the Facility fails to meet its Dispatch Target or Dispatch Cap (if the Dispatch Target or Cap does not exceed the Facility’s RCOQ), or else fails to inject its RCOQ (where the Dispatch Target or Cap exceeds the Facility’s RCOQ).

4.26.1J. Where a Scheduled Facility or a Semi-Scheduled Facility that

has a Reserve Capacity Obligation Quantity greater than zero for a Dispatch Interval:

$a$ has been issued a Dispatch Target or a Dispatch Cap less than or equal to its Reserve Capacity Obligation Quantity and did not Inject at a level of the Dispatch Cap or Dispatch Target during the Dispatch Interval; or

$b$ has been issued a Dispatch Target or a Dispatch Cap greater than its Reserve Capacity Obligation Quantity and did not Inject at least at a level of the Reserve Capacity Obligation Quantity during the Dispatch Interval,

the Market Participant for the Facility must, as soon as practicable at the end of the Dispatch Interval, or in any event, within 24 hours of the end of the Dispatch Interval, submit a Forced Outage in accordance with the WEM Procedure specified in clause 3.21.10.

Explanatory Note

Changes to the Net STEM Shortfall calculation are required to:

remove references to ESS quantities (currently Ancillary Service quantities), which will no longer be relevant to the calculation;
convert inputs that will be provided on a Dispatch Interval basis to Trading Interval quantities;
convert loss-adjusted STEM quantities to their sent out equivalents, to allow a more appropriate comparison with RCOQ (which is determined on a sent out basis); and
use RCOQ and capacity adjusted outage values determined “at the time of Bilateral Submission Cutoff” - Tranche 5 will contain further amendments to distinguish between the RCOQs that apply for the purpose of Scheduling Day obligations and the calculation of Net STEM Shortfall (based on the approved Outages and Commissioning Test Plans at Bilateral Submission Cutoff) and the RCOQs that apply for the Real-Time Market and other capacity refund calculations.

Clause 4.26.2 is deleted and replaced with clauses 4.26.2AA to ### 4.26.2AH (inclusive).

4.26.2. [Blank]

4.26.2A. [Blank]

Explanatory Note

For each Trading Interval, a Market Participant is required to provide a quantity of capacity through the Bilateral Submission and STEM Submission processes (CAPASTEM(p,t)) that is greater than or equal to the ‘required’ quantity for that Market Participant and Trading Interval (STEMREQ(p,t)), or else pay a refund on the shortfall. However, the shortfall calculation is capped (using RTCR(p,t)) to ensure that capacity which incurs a Facility Reserve Capacity Deficit Refund is not also subject to a Net STEM Refund.

4.26.2AA. AEMO must determine the net STEM shortfall (“Net STEM

Shortfall”) in Reserve Capacity supplied by each Market Participant p holding Capacity Credits for one or more Scheduled Facilities, Semi-Scheduled Facilities or Non-Scheduled Facilities in each Trading Interval t as:

STEMSF(p,t) = max(0, STEMREQ(p,t)−CAPASTEM(p,t)−RTCR(p,t))

where:

$a$ STEMREQ(p,t) is determined for Market Participant p in Trading Interval t under clause 4.26.2AB;

$b$ CAPASTEM(p,t) is determined for Market Participant p in Trading Interval t under clause 4.26.2AE; and

$c$ RTCR(p,t) is determined for Market Participant p in Trading Interval t under clause 4.26.2AH.

Explanatory Note

Clause 4.26.2AB sets the STEM requirement quantity for a Market Participant in a Trading Interval to the average of the STEM requirement quantities determined under clause 4.26.2AC for the Market Participant for each Dispatch Interval.

4.26.2AB. STEMREQ(p,t) for Market Participant p in Trading Interval t

is:

\[STEMREQ(p,t) = \frac{\sum\_{DI \in t}^{}{STEMREQ(p,DI)}}{6}\]

where:

$a$ STEMREQ(p,DI) is determined for Market Participant p in Dispatch Interval DI under clause 4.26.2AC; and

$b$ DI∈t denotes all Dispatch Intervals DI in Trading Interval t.

Explanatory Note

Clause 4.26.2AC sets the STEM requirement quantity for a Market Participant in a Dispatch Interval to the sum of the STEM requirement quantities determined under clause 4.26.2AD for each of the Market Participant’s relevant Facilities in that Dispatch Interval.

4.26.2AC. STEMREQ(p,DI) for Market Participant p in Dispatch Interval DI

is:

\[STEMREQ(p,DI) = \sum\_{f \in SFFacilities(p,DI)}^{}{STEMFREQ(f,DI)}\]

where:

$a$ STEMFREQ(f,DI) is determined for Facility f in Dispatch Interval DI under clause 4.26.2AD; and

$b$ f∈SFFacilities(p,DI) denotes all Scheduled Facilities and Semi-Scheduled Facilities for which Market Participant p holds Capacity Credits in Dispatch Interval DI and which AEMO considers to be in Commercial Operation in Dispatch Interval DI.

Explanatory Note

Clauses 4.26.2AD and 4.26.2AG have been amended to use STEM Reserve Capacity Obligation Quantities. Clauses 4.26.2AD and 4.26.2AH have been amended to replace the references to CAPO and CAFO quantities determined at the time of Bilateral Submission Cutoff with references to estimates of CAPO and CAFO quantities determined by AEMO on the Scheduling Day for the relevant Trading Day in accordance with Chapter 6.

Clause 4.26.2AD is further amended to include a specific clause reference for the calculation of STEMCAFO(f,DI) values.

4.26.2AD. STEMFREQ(f,DI) for Facility f in Dispatch Interval DI is:

STEMFREQ(f, DI) = STEMRCOQ(f, DI) − Max(0,STEMCAFO(f,DI)−CAFO(f,DI))

where:

$a$ STEMRCOQ(f,DI) is the STEM Reserve Capacity Obligation Quantity determined for Facility f in Dispatch Interval DI;

$b$ STEMCAFO(f,DI) is the estimate of the Capacity Adjusted Forced Outage Quantity for Facility f in Dispatch Interval DI determined on the Scheduling Day for the relevant Trading Day under clause 6.3A.3(g); and

$c$ CAFO(f,DI) is the Capacity Adjusted Forced Outage Quantity determined for Facility f in Dispatch Interval DI under clause 3.21.7C.

Explanatory Note

Clause 4.26.2AE calculates the quantity of capacity deemed to have been provided through the Bilateral Submission and STEM Submission processes by a Market Participant in a Trading Interval. This quantity is the ‘sent out’ MW equivalent of the sum of the Market Participant’s:

Net Contract Position;
STEM Offers that were not scheduled in the STEM Auction; and
STEM Bids that were scheduled in the STEM Auction.

4.26.2AE. CAPASTEM(p,t) for Market Participant p in Trading Interval t

is:

$a$ where the STEM Auction has been suspended by AEMO in accordance with section 6.10 or where STEMREQ(p,t)=0:

CAPASTEM(p,t) = STEMREQ(p,t)

$b$ otherwise:

\[CAPASTEM(p,t) = \\\left( \frac{NCP(p,t) + UnclearedSTEMOffers(p,t) + ClearedSTEMBids(p,t)}{LF(p,t) \times \frac{30}{60}} \right)\]

where:

i. STEMREQ(p,t) is determined for Market Participant p in Trading Interval t under clause 4.26.2AB;

ii. NCP(p,t) is Market Participant p’s Net Contract Position for Trading Interval t in MWh;

iii. UnclearedSTEMOffers(p,t) is the total MWh quantity covered by the STEM Offers which were not scheduled in the relevant STEM Auction, determined by AEMO for Market Participant p under section 6.9 for Trading Interval t;

iv. ClearedSTEMBids(p,t) is the total MWh quantity covered by the STEM Bids which were scheduled in the relevant STEM Auction, determined by AEMO for Market Participant p under section 6.9 for Trading Interval t; and

v. LF(p,t) is determined for Market Participant p in Trading Interval t under clause 4.26.2AF.

4.26.2AF. LF(p,t) for Market Participant p for Trading Interval t is:

\[\text{LF(p,t)=}\frac{\sum\_{\text{DI}\text{∈}\text{t}}^{}{\text{LF}\left( \text{p,DI} \right)}}{\text{6}}\]

where:

$a$ LF(p,DI) is the capacity obligation weighted average of the Loss Factors for Market Participant p’s Scheduled Facilities and Semi-Scheduled Facilities in Dispatch Interval DI determined under clause 4.26.2AG; and

$b$ DI∊t denotes all Dispatch Intervals in Trading Interval t.

4.26.2AG. LF(p,DI) for Market Participant p in Dispatch Interval DI is:

\[LF(p,DI) = \frac{\sum\_{f \in SFFacilities(p,DI)}^{}{(LossFactor(f,DI)x\\STEMRCOQ(f,DI))}}{\sum\_{f \in SFFacilities(p,DI)}^{}{STEMRCOQ(f,DI)}}\]

where:

$a$ LossFactor(f,DI) is the Loss Factor for Facility f in Dispatch Interval DI;

$b$ STEMRCOQ(f,DI) is the STEM Reserve Capacity Obligation Quantity determined for Facility f in Dispatch Interval DI; and

$c$ f∈SFFacilities(p,DI) denotes all Scheduled Facilities and Semi-Scheduled Facilities for which Market Participant p holds Capacity Credits in Dispatch Interval DI and which AEMO considers to be in Commercial Operation in Dispatch Interval DI.

Explanatory Note

Clause 4.26.2AH calculates RTCR(p,t), which is used in the Net STEM Shortfall calculation to prevent a Net STEM Shortfall from being calculated for capacity that is already subject to a Facility Reserve Capacity Deficit Refund.

Clause 4.26.2AH is further amended to:

include a specific clause reference for the calculation of STEMCAPO(f,t) values (as presented in Exposure Draft 1);
replace the term ‘Refund Payable Planned Outage’ with ‘Refund Payable Planned Outage Quantity’, to clarify that AEMO’s determinations apply to Capacity Adjusted Planned Outage Quantities rather than Planned Outages; and
clarify that clause 4.26.1C applies to Separately Certified Components that are Non‑Intermittent Generating Systems, while clause ### 4.26.1CA applies to Separately Certified Components that are Electric Storage Resources.

4.26.2AH. RTCR(p,t) for Market Participant p in Trading Interval t is:

\[RTCR(p,t) = \sum\_{f \in SFFacilities(p,t)}^{}{(CAFO(f,t) + NISCRQ(f,t) + ESRCSF(f,t) + RTMOSF(f,t) + \max\left( 0,NIMGRPPO(f,t) + ESRRPPO(f,t) - STEMCAPO(f,t) \right))}\]

where:

$a$ CAFO(f,t) is the Capacity Adjusted Forced Outage Quantity determined for Facility f in Trading Interval t under clause 3.21.7B;

$b$ NISCRQ(f,t) is the Not In-Service Capacity Refund Quantity determined for Facility f in Trading Interval t under clause 4.26.1D;

$c$ ESRCSF(f,t) is the ESR Charge Shortfall determined for Facility f in Trading Interval t under clause 4.26.1E;

$d$ RTMOSF(f,t) is the Real-Time Market Offer Shortfall determined for Facility f in Trading Interval t under clause 4.26.1G;

$e$ NIMGRPPO(f,t) is the total Refund Payable Planned Outage Quantity determined for Separately Certified Components of Facility f which are Non-Intermittent Generating Systems in Trading Interval t under clause

4.26.1C;

$f$ ESRRPPO(f,t) is the total Refund Payable Planned Outage Quantity determined for Separately Certified Components of Facility f which are Electric Storage Resources in Trading Interval t under clause 4.26.1CA;

$g$ STEMCAPO(f,t) is the estimate of the Capacity Adjusted Planned Outage Quantity for Facility f in Trading Interval t determined on the Scheduling Day for the relevant Trading Day under clause 6.3A.3(g); and

$h$ f∈SFFacilities(p,t) denotes all Scheduled Facilities and Semi-Scheduled Facilities for which Market Participant p holds Capacity Credits in Trading Interval t and which AEMO considers to be in Commercial Operation in Trading Interval t.

4.26.2B. [Blank]

4.26.2C. [Blank]

4.26.2CA. The Relevant Demand of a Demand Side Programme for a Trading

Day d in a Capacity Year is the lesser of:

$a$ a value determined for the Demand Side Programme using the methodology set out in Appendix 10; and

$b$ the sum of Individual Reserve Capacity Requirement Contributions of the Associated Loads of the Demand Side Programme for the Trading Month in which Trading Day d falls.

4.26.2CB. For the purposes of step 2(c) of Appendix 10:

$a$ a Market Participant may submit a Consumption Deviation Application to AEMO in accordance with the WEM Procedure referred to in clause 4.26.2CE, in respect of an Associated Load for the previous Capacity Year, if:

i. the level of consumption of the Associated Load was affected in a Trading Interval; and

ii. the Market Participant considers that the deviation in the level of consumption was due to:

1. a request received from AEMO; or

2. a maintenance event; and

$b$ AEMO must accept or reject a Consumption Deviation Application submitted under clause 4.26.2CB(a) by the time specified in clause

4.26.2CG.

4.26.2CC. AEMO may charge an Application Fee to cover its costs of

requesting clarification or further information of any aspect of a Consumption Deviation Application in accordance with clause 4.26.2CF.

4.26.2CD. A Consumption Deviation Application submitted under clause

4.26.2CB(a) must:

$a$ subject to clause 4.26.2CH, be submitted as soon as practicable but, in any event, on or before 31 October in the Capacity Year to which the Relevant Demand applies; and

$b$ contain, or be accompanied by, the information specified in the WEM Procedure referred to in clause 4.26.2CE.

4.26.2CE. AEMO must specify the following matters in a WEM Procedure:

$a$ the process that a Market Participant must follow when submitting a Consumption Deviation Application for an Associated Load under clause

4.26.2CB(a);

$b$ the information and supporting evidence that a Market Participant must provide in its Consumption Deviation Application submitted under clause 4.26.2CB(a);

$c$ the process that AEMO must follow when it receives a Consumption Deviation Application submitted under clause 4.26.2CB(a);

$d$ the criteria that AEMO must consider when deciding whether to accept or reject a Consumption Deviation Application submitted under clause 4.26.2CB(a); and

$e$ for the purposes of step 2(c) of Appendix 10, the process that AEMO must follow when estimating what the consumption of an Associated Load would have been if it had not been affected by the matters set out in the Consumption Deviation Application.

4.26.2CF. If it considers it reasonably necessary to assess the

Consumption Deviation Application, AEMO may request clarification or further information of any aspect of the Consumption Deviation Application submitted under clause 4.26.2CB(a). Any clarification or information received is deemed to be part of the Consumption Deviation Application.

4.26.2CG. AEMO must accept or reject a Consumption Deviation Application

submitted by a Market Participant in accordance with clause 4.26.2CB(a) within 10 Business Days of the later of:

$a$ receipt of the Consumption Deviation Application; and

$b$ receipt of any clarification or information provided under clause

4.26.2CF.

4.26.2CH. A Consumption Deviation Application for a Load that was first

associated with a Demand Side Programme under clause 2.29.5G, for the Market Participant submitting the Consumption Deviation Application, after the date referred to in clause 4.26.2CD, must be submitted on or before the date which is 30 days from commencement of the Association Period for that Associated Load.

Explanatory Note

Clause 4.26.2D is amended to reflect that:

Demand Side Programmes have an “effective” Dispatch Instruction for every Trading Interval, albeit that the effective Dispatch Instruction usually contains a zero MW quantity; and
DIMW(f,t) values will be provided under clause 7.13.5 and will be MW rather MWh values.

4.26.2D. AEMO must determine the capacity shortfall in Reserve Capacity

(“Capacity Shortfall”) supplied by each Market Participant holding Capacity Credits associated with a Demand Side Programme f in each Trading Interval t relative to its Reserve Capacity Obligation Quantity as:

$a$ where AEMO has issued a Dispatch Instruction with a non-zero MW quantity under section 7.6 to the Demand Side Programme f for the Trading Interval:

max(0, min(RCOQ(f,t), DIMW(f,t)) – max (0, RD(f,t) – DSPLMW(f,t)))

where

RCOQ(f,t) is the Reserve Capacity Obligation Quantity of the Demand Side Programme f for Trading Interval t (in MW);

DIMW(f,t) is the quantity by which the Demand Side Programme f was instructed by AEMO to curtail the absolute value of its Withdrawal in Trading Interval t as specified by AEMO in accordance with clause 7.13.5;

RD(f,t) is the Relevant Demand of the Demand Side Programme f for the Trading Day the Trading Interval t falls on, determined by AEMO in accordance with clause 4.26.2CA; and

DSPLMW(f,t) is the Demand Side Programme Load of the Demand Side Programme f in Trading Interval t, multiplied by two to convert to units of MW; and

$b$ zero, where AEMO has issued a Dispatch Instruction with a zero MW quantity under section 7.6 to the Demand Side Programme f for Trading Interval t.

4.26.2E. For each Market Participant holding Capacity Credits, AEMO must

determine the amount of the refund (“Capacity Cost Refund”) to be applied for Trading Day d as the sum of the Trading Interval Capacity Cost Refunds of every Trading Interval in the Trading Day d, as calculated in accordance with clause 4.26.2F.

Explanatory Note

Clause 4.26.2F is amended to:

remove the reference to Electric Storage Resources in clause ### 4.26.2F(a)(i), which is redundant because an Energy Producing System is defined as “one or more electricity producing units, such as generation systems or Electric Storage Resources, located behind a single network connection point or electrically connected behind two or more shared network connection points”; and
improve the clarity of clause 4.26.2F(b), and in particular to clarify that the calculation includes Demand Side Programme Capacity Cost Refunds for unregistered Facilities with an indicative Facility Class of Demand Side Programme.

4.26.2F. The Trading Interval Capacity Cost Refund for Market

Participant p and Trading Interval t is the sum of:

$a$ either:

i. where Market Participant p holds Capacity Credits associated with an Energy Producing System, the Generation Capacity Cost Refund for Market Participant p for Trading Interval t, determined in accordance with clause 4.26.3; or

ii. zero, otherwise; and

$b$ the sum of the Demand Side Programme Capacity Cost Refunds for Trading Interval t for each Facility with a Facility Class (or, for an unregistered Facility, an indicative Facility Class) of Demand Side Programme for which Market Participant p holds Capacity Credits in Trading Interval t.

4.26.3. The Generation Capacity Cost Refund for Trading Interval t in

Capacity Year y for a Market Participant p holding Capacity Credits associated with an Energy Producing System is the lesser of:

$a$ the Maximum Participant Generation Refund determined for Market Participant p and Capacity Year y less all Generation Capacity Cost Refunds applicable to Market Participant p in previous Trading Interval t falling in Capacity Year y; and

$b$ the Generation Reserve Capacity Deficit Refund for Market Participant p and Trading Interval t, plus the Net STEM Refund in Trading Interval t for Market Participant p, where the Net STEM Refund is calculated as follows:

N STEM Refund(p,t) = TIRR weighted(p,t) × N STEM Short(p,t)

where:

i. N STEM Refund(p, t) is the Net STEM Refund for Market Participant p in Trading Interval t;

ii. TIRR weighted(p, t) is the weighted average of the Trading Interval Refund Rate in Trading Interval t for each Registered Facility that Market Participant p holds Capacity Credits for and is calculated as follows:

\[TIRR\\weighted(p,t) = \sum\_{f\epsilon F}^{}\frac{TIRR(f,t) \times CC(f,t)}{\sum\_{f\epsilon F}^{}{CC}(f,t)}\]

where:

1. F denotes the set of all Registered Facilities registered to Market Participant p in Trading Interval t, for which Market Participant p holds Capacity Credits in Trading Interval t, excluding Demand Side Programmes and f is a Facility within that set;

2. TIRR(f, t) is the Trading Interval Refund Rate for Facility f in Trading Interval t; and

3. CC(f,t) is the number of Capacity Credits associated with Facility f in Trading Interval t; and

iii. N STEM Short(p, t) is the Net STEM Shortfall for Market Participant p in Trading Interval t.

4.26.3A. The Demand Side Programme Capacity Cost Refund for Trading

Interval t for a Facility f with a Facility Class (or, for an unregistered Facility, an indicative Facility Class) of Demand Side Programme is equal to the lesser of:

$a$ the Maximum Facility Refund for Facility f in the Capacity Year the Trading Interval t falls in, less all Demand Side Programme Capacity Cost Refunds applicable to the Facility in previous Trading Intervals falling in the same Capacity Year; and

$b$ the sum of:

i. either:

1. if Facility f is a Registered Facility:

TIRR(f,t) × S

where:

S is the Capacity Shortfall in MW determined in accordance with clause

4.26.2D in Trading Interval t, and

TIRR(f,t) is the Trading Interval Refund Rate for Facility f in Trading Interval t; or

2. otherwise, zero; and

ii. the Facility Reserve Capacity Deficit Refund for Trading Interval t for Facility f, determined in accordance with clause 4.26.1A.

4.26.4. For each Market Participant holding Capacity Credits associated

with a Scheduled Facility, Semi Scheduled Facility or a Demand Side Programme, AEMO must determine the amount of the rebate (“Participant Capacity Rebate”) to be applied for Trading Interval t as the sum of all Facility Capacity Rebates determined in accordance with clause

4.26.6. 4.26.5. [Blank]

Explanatory Note

Clause 4.26.6(b) is amended to accommodate the removal of Capacity Refunds for Demand Side Management seeking a voluntary reduction of Capacity Credits. (clause 4.25.4E).

Clause 4.26.6(e)(ii)(2) has been amended to remove the now invalid reference to clause 4.12.4(c).

Clause 4.26.6(e)(i)(3) is further amended to simplify the test in that clause by limiting it to Generation Capacity Cost Refunds and the Maximum Participant Generation Refund (which are already defined and calculated). It is not necessary to include Demand Side Programme Facilities in the test because the refunds for each such Facility are capped on a Facility basis.

Clause 4.26.6(e)(ii)(4) is removed because the test in that clause is unnecessary - if the Facility passes the test in clause ### 4.26.6(e)(ii)(3), then the Market Participant would never fail the test in clause 4.26.6(e)(ii)(4), because of the way that caps are applied to the refunds of the Market Participant’s other Facilities.

4.26.6. The Facility Capacity Rebate in Trading Interval t for Facility

f, being a Scheduled Facility, Semi-Scheduled Facility or a Demand Side Programme for which a Market Participant holds Capacity Credits:

\[FCR(f,t) = \\\frac{Cshare(f,t)x\\E(f,t)}{\sum\_{f \in F}^{}{CShare(f,t)x\\E(f,t)}}\\x\\TAR(t)\]

where:

$a$ FCR(f, t) is the Facility Capacity Rebate for Facility f in the Trading Interval t;

$b$ TAR(t) is the sum of all Trading Interval Capacity Cost Refunds for all Market Participants in Trading Interval t;

$c$ F is the set of Facilities, being Scheduled Facilities, Semi-Scheduled Facilities and Demand Side Programmes and f is a Facility within that set;

$d$ CShare(f,t) for a Facility f in a Trading Interval t is the Facility’s Reserve Capacity Obligation Quantity less any Forced Outages in Trading Interval t determined as follows:

i. for a Scheduled Facility or Semi-Scheduled Facility, the greater of zero and:

1. the Reserve Capacity Obligation Quantity for Facility f in Trading Interval t; less

2. the Capacity Adjusted Forced Outage Quantity for Facility f in Trading Interval t calculated in 3.21.7B; and

ii. for a Demand Side Programme, the lesser of:

1. the Demand Side Programme Load multiplied by two so as to be a MW quantity less the sum of the Minimum Consumptions in MW for each of the Facility’s Associated Loads; and

2. the Demand Side Programme’s Reserve Capacity Obligation Quantity in t; and

$e$ E(f, t) is the eligibility of Facility f in Trading Interval t, equal to:

i. one for any Facility which is a Scheduled Facility or Semi-Scheduled Facility and the following applies:

1. the Facility has a Sent Out Metered Schedule greater than zero in any one of the 1,440 Trading Intervals prior to and including Trading Interval t;

2. the sum of the Facility Reserve Capacity Deficit Refunds for Facility f, in Capacity Year y that the Trading Interval t falls in, for Trading Intervals prior to and including Trading Interval t, is less than the Maximum Facility Refund for Facility f in Capacity Year y; and

3. the sum of the Generation Capacity Cost Refunds in Capacity Year y that the Trading Interval t falls in, for Trading Intervals prior to and including Trading Interval t, for the Market Participant p to which the Facility is registered, is less than the Maximum Participant Generation Refund for Market Participant p for Capacity Year y; and

ii. one for any Facility which is a Demand Side Programme and the following applies:

1. the Facility received a Dispatch Instruction to reduce consumption in any one of the 1,440 Trading Intervals prior to and including Trading Interval t;

2. the Reserve Capacity Obligation Quantity for the Demand Side Programme does not equal zero in Trading Interval t; and

3. the sum of the Demand Side Programme Capacity Cost Refunds for Facility f, in Capacity Year y that the Trading Interval t falls in, for Trading Intervals prior to and including Trading Interval t, is less than the Maximum Facility Refund for Facility f in Capacity Year y; and

iii. zero otherwise.

4.27. Reserve Capacity Performance Monitoring

4.27.1. [Blank]

4.27.2. By the 25th day of each month, AEMO must assess the number of

Equivalent Planned Outage Hours taken in the preceding 12 Trading Months by each Scheduled Facility and Semi-Scheduled Facility assigned Capacity Credits for the current Capacity Year.

4.27.3. If the number of Equivalent Planned Outage Hours for a Facility,

as determined under clause 4.27.2, exceeds 1,750 hours for the preceding 12 Trading Months, AEMO may require the Market Participant holding Capacity Credits for that Facility to provide to AEMO:

$a$ a Reserve Capacity Performance Report as described in clause

4.27.4; and

$b$ a Reserve Capacity Performance Improvement Report as described in clause 4.27.4A, to be provided at intervals specified by AEMO, but not more frequently than once per quarter.

4.27.3A. In making its decision whether to require a report under clause

4.27.3, AEMO must assess whether the number of Equivalent Planned Outage

Hours taken by the Facility in the previous 12 Trading Months was attributable to specific, infrequent events or is indicative of an underlying performance deficiency, and may consider any matters it deems relevant in making this assessment.

4.27.4. A Reserve Capacity Performance Report must include:

$a$ explanations of all Planned Outages taken by the Facility in the 12 Trading Months referred to in clause 4.27.2;

$b$ a statement of the expected maximum number of days of Planned Outages to be taken by the Facility in each of the next 36 Trading Months commencing from the Trading Month in which the report is requested, including adequate explanation to make clear the reason for each Planned Outage;

(bA) the relationship of the Planned Outages to the long term asset management strategy and established maintenance plan for the Facility;

$c$ measures being undertaken or proposed by the Market Participant to increase the availability of the Facility, and their actual and anticipated effect on the frequency of Planned Outages; and

$d$ any other information concerning the availability of the Facility that AEMO may request.

4.27.4A. A Reserve Capacity Performance Improvement Report must include:

$a$ descriptions of the measures proposed, being undertaken or already undertaken by the Market Participant to increase the availability of the Facility;

$b$ details of any changes to the expected maximum number of days of Planned Outages to be taken by the Facility for a Trading Month previously provided by the Market Participant under clause 4.27.4(b) or this clause 4.27.4A(b), including adequate explanations for each change; and

$c$ explanation of any variation between expected and actual improvement of the availability of the Facility as a result of the measures taken.

4.27.5. A Market Participant must:

$a$ provide a Reserve Capacity Performance Report to AEMO in a format specified in the WEM Procedure referred to in clause 4.27.12 within 20 Business Days of being requested to do so; and

$b$ provide a Reserve Capacity Performance Improvement Report to AEMO in a format specified in the WEM Procedure referred to in clause 4.27.12 by the date specified by AEMO under clause 4.27.3(b).

4.27.6. AEMO may, at the Market Participant’s expense, consult with any

person AEMO considers suitably qualified to provide an opinion on a report provided under clause 4.27.5. AEMO may ask the person to provide an opinion on the report generally, or to limit the scope of the opinion to specified matters covered in the report.

4.27.7. [Blank]

4.27.8. [Blank]

4.27.9. [Blank]

4.27.10. Market Participants holding Capacity Credits for Facilities

that are yet to commence operation must file a report on progress with AEMO:

$a$ at least once every three months from the date the Capacity Credits are confirmed under clause 4.20.5A; and

$b$ at least once every month between the start of the calendar year in which the date referred to in clause 4.10.1(c)(iii)(7) falls and the date AEMO notifies the Market Participant, under clause 4.13.14, that the need to maintain the Reserve Capacity Security for the Facility has ceased.

4.27.11. Reports provided under clause 4.27.10 must include any changes

to Key Project Dates.

4.27.11A Upon receipt of a report provided under clause 4.27.10(a) AEMO

must revise the date referred to in clause 4.10.1(c)(iii)(7) in accordance with the report unless, in its opinion, the Facility, or part of the Facility, is unlikely to have completed all Commissioning Tests by that date.

4.27.11B [Blank]

4.27.11C If, in accordance with clause 4.27.11A, AEMO rejects a change

to the Key Project Dates provided in accordance with clause 4.27.10(b) or 4.27.11D AEMO must, within ten Business Days of receiving the report, notify the Market Participant of its decision and provide reasons why the dates have been rejected.

4.27.11D Where AEMO rejects a change to the Key Project Dates it may

require the Market Participant to provide additional information, submitted by a suitably authorised person, and may also require the Market Participant to submit further reports or revise the Key Project Dates. The provisions of clauses 4.27.11 to this clause 4.27.11D will apply to any further reports.

4.27.12. AEMO must document the procedure to be followed in performing

Reserve Capacity monitoring in a WEM Procedure. Amongst other things, the WEM Procedure must list the documents and other items that may be required by AEMO as supporting evidence in accordance with clause

4.27.11D.

Funding Reserve Capacity Purchased by AEMO

4.28. Funding Reserve Capacity Purchased by AEMO

Explanatory Note

Clause 4.28.1 is amended as a consequence of the deletion of the Reserve Capacity Auction.

Amendments made to clause 4.28.1 for weekly settlement and because the Special Price Arrangement concept is no longer applicable.

Clause 4.28.1 is also amended pursuant to the October 2021 RCM Pricing Amendments as a result of tranche based dispatch payments for DSPs ceasing from the 2019 Reserve Capacity Cycle (i.e. from the 2021 Capacity Year).

4.28.1. AEMO must separate the total costs of Capacity Credits acquired

by it for a Trading Day into the following two sets:

$a$ the cost of acquiring enough Capacity Credits to ensure, to the extent possible given the number of Capacity Credits AEMO has acquired, that the lesser of:

i. the Reserve Capacity Requirement applicable to that Trading Day; and

ii. total Capacity Credits assigned to Facilities,

is just covered after allowing for Capacity Credits traded bilaterally (as defined in clause 4.14.2 and subject to clause 4.28.2(b)) in that Trading Day; and

$b$ the cost of other Capacity Credits acquired but not allocated to the set referred to in clause 4.28.1(a),

determined on the basis that the Capacity Credits acquired by AEMO are allocated to the set referred to in clause 4.28.1(a) in order of decreasing cost per Capacity Credit until the capacity requirements referred to in clause 4.28.1(a) are met, with the remaining Capacity Credits acquired by AEMO being allocated to the set referred to in clause 4.28.1(b).

Explanatory Note

Amendments made to clause 4.28.2 for weekly settlement, the new registration taxonomy and the moving of the capacity credit allocations from Chapter 9 to Chapter 4.

Clause 4.28.2 is also amended pursuant to the October 2021 RCM Pricing Amendments as a result of Market Participants with DSPs being able to bilaterally trade the Capacity Credits assigned to their DSPs from the 2019 Reserve Capacity Cycle, and as a consequence of amendments to section 4.29.

4.28.2. For the purposes of clause 4.28.1:

$a$ AEMO is taken to have acquired a Capacity Credit held by a Market Participant in respect of a Facility for a Trading Day if that Capacity Credit has not been allocated by that Market Participant to another Market Participant for settlement purposes under sections 4.30 and 4.31;

$b$ any Capacity Credits that have been allocated to a Market Participant in excess of that Market Participant’s Individual Reserve Capacity Requirement must be:

i. deemed to be Capacity Credits acquired by AEMO from the Market Participant; and

ii. not counted as Capacity Credits traded bilaterally;

$c$ [Blank]

(cA) [Blank]

(cB) the cost of a Capacity Credit deemed to be acquired by AEMO from a Market Participant under clause 4.28.2(b)(i) is the Excess Allocation Price for that Market Participant in that Trading Day; and

$d$ the cost of each other Capacity Credit acquired by AEMO from a Facility is the Facility Daily Reserve Capacity Price for that Facility in that Trading Day.

4.28.3. For each Trading Day, AEMO must calculate the Targeted Reserve

Capacity Cost and must allocate this cost to Market Participants in accordance with section 9.8.

4.28.4. For each Trading Day, AEMO must calculate a Shared Reserve

Capacity Cost being the sum of:

$a$ the cost defined under clause 4.28.1(b); and

$b$ the net payments to be made by AEMO under Supplementary Capacity Contracts less any amount drawn under a Reserve Capacity Security or a DSM Reserve Capacity Security by AEMO and distributed in accordance with clauses 4.13.11A(a) or 4.13A.16(a) for that Trading Day; less

$c$ the sum of all Intermittent Load Refunds, calculated under clause

4.28A.1, paid by all Market Participants for that Trading Day; less

$d$ any amount drawn under a Reserve Capacity Security or a DSM Reserve Capacity Security by AEMO and distributed in accordance with clauses 4.13.11A(b) or 4.13A.16(b) for that Trading Day,

and AEMO must allocate this total cost to Market Participants in proportion to each Market Participant’s Individual Reserve Capacity Requirement.

4.28.5. The Shared Reserve Capacity Cost may have a negative value.

Explanatory Note

Clauses 4.28.6 and 4.28.7 are amended to clarify that the Indicative Individual Reserve Capacity Requirements and Individual Reserve Capacity Requirements for a Market Participant are only disclosed to that Market Participant.

4.28.6. For each Trading Month, AEMO must determine and provide to each

Market Participant that Market Participant’s Indicative Individual Reserve Capacity Requirement by the date and time specified in clause

4.1.23C, where this Indicative Individual Reserve Capacity Requirement

is determined using the methodology described in Appendix 5.

4.28.7. For each Trading Month, AEMO must determine and provide to each

Market Participant that Market Participant’s Individual Reserve Capacity Requirement by the date and time specified in clause 4.1.24, where this Individual Reserve Capacity Requirement is determined using the methodology described in Appendix 5.

Explanatory Note

Amendments made to clause 4.28.8 for changes in taxonomy and to remove clause 4.28.8(b) (this clause was deleted due to the infeasibility of operationalising the rule).

Intermittent Loads registered before New WEM Commencement Day are subject to special IRCR calculations, and must provide data to be used in those calculations. All future Intermittent Loads will use the same IRCR calculations as other Facilities.

Clause 4.28.8A is deleted, as all relevant Intermittent Loads will already be registered by the relevant date.

4.28.8. To assist AEMO in determining Indicative Individual Reserve

Capacity Requirements in accordance with clause 4.28.6 and Individual Reserve Capacity Requirements in accordance with clause 4.28.7 for the Capacity Year starting on 1 October of Year 3 of a Reserve Capacity Cycle, Market Participants must, by the date and time specified in clause 4.1.23, provide to AEMO:

$a$ the identity of all interval meters associated with that Market Participant which measure Loads that it nominates as Non-Temperature Dependent Loads; and

$b$ [Blank]

$c$ nominations of capacity requirements for Intermittent Loads, deemed to be Intermittent Loads under clause 1.48.2, expressed in MW, where the nominated quantity cannot exceed the greater of:

i. the maximum allowed level of Intermittent Load specified in Standing Data for that Intermittent Load at the time of providing the data; and

ii. the maximum Contract Maximum Demand expected to be associated with that Intermittent Load during the Capacity Year to which the nomination relates. The Market Participant must provide evidence to AEMO of this Contract Maximum Demand level unless AEMO has previously been provided with that evidence.

4.28.8A. [Blank]

4.28.8B. AEMO must accept a nomination for capacity for an Intermittent

Load from a Market Participant if that nomination is made in accordance with clause 4.28.8 provided that AEMO is satisfied of the accuracy of the data and evidence provided in accordance with clause 4.28.8(c)(ii).

4.28.8C. Subject to clause 4.28.11, a Market Participant may provide to

AEMO the identity of additional interval meters (to those provided under clause 4.28.8) associated with the Market Participant which measure Loads that it nominates as Non-Temperature Dependent Loads for the remainder of the relevant Capacity Year by providing the relevant information to AEMO no later than 15 Business Days prior to the date and time specified in clause 4.1.23C for the first Trading Month for which the Market Participant wants AEMO to take the updated information into account.

4.28.9. AEMO must only accept the load measured by an interval meter

nominated in accordance with clauses 4.28.8(a) or 4.28.8C as a Non-Temperature Dependent Load if that load satisfies the requirements of Appendix 5A.

4.28.9A. A Market Participant may submit a Consumption Deviation

Application to AEMO in accordance with the WEM Procedure referred to in clause 4.28.9E, in respect of a Load that it has nominated as a Non-Temperature Dependent Load under clause 4.28.8(a) or clause 4.28.8C and a Trading Interval, if:

$a$ the level of consumption of the Load was affected in the Trading Interval; and

$b$ the Market Participant considers that the deviation in the level of consumption was due to:

i. the Trading Interval falling on a Trading Day that is not a Business Day; or

ii. a maintenance event.

4.28.9B. AEMO may charge an Application Fee to cover its costs of

requesting clarification or further information of any aspect of a Consumption Deviation Application in accordance with clause 4.28.9F.

4.28.9C. A Consumption Deviation Application submitted under clause

4.28.9A must:

$a$ be submitted as soon as practicable, but in any event:

i. for an application that relates to the Individual Reserve Capacity Requirement for October in the relevant Capacity Year, must be submitted by the date and time specified in clause 4.1.23; and

ii. for an application that relates to the Individual Reserve Capacity Requirement for a Trading Month, other than October, in the relevant Capacity Year, must be submitted by the date and time specified in clause 4.28.8C; and

$b$ contain, or be accompanied by, the information specified in the WEM Procedure referred to in clause 4.28.9E.

4.28.9D. AEMO must accept or reject a Consumption Deviation Application

submitted under clause 4.28.9A in accordance with the WEM Procedure referred to in clause 4.28.9E no later than the time the information is needed for the calculation of the relevant Indicative Individual Reserve Capacity Requirement.

4.28.9E. AEMO must specify the following matters in a WEM Procedure:

$a$ the process that a Market Participant must follow when submitting a Consumption Deviation Application for a Load under clause 4.28.9A;

$b$ the information and supporting evidence that a Market Participant must provide in its Consumption Deviation Application submitted under clause 4.28.9A;

$c$ the process that AEMO must follow when it receives a Consumption Deviation Application submitted under clause 4.28.9A; and

$d$ the criteria that AEMO must consider when deciding whether to accept or reject a Consumption Deviation Application submitted under clause 4.28.9A.

4.28.9F. If it considers it reasonably necessary to assess the

Consumption Deviation Application, AEMO may request clarification or further information of any aspect of the Consumption Deviation Application submitted under clause 4.28.9A. Any clarification or information received is deemed to be part of the Consumption Deviation Application.

4.28.10. [Blank]

4.28.11. For each Capacity Year, a Market Participant may only provide

AEMO with the relevant information specified in clauses 4.28.8, 4.28.8A and 4.28.8C once with respect to each load.

4.28.11A. When undertaking the Adjustment Process for a Trading Week,

which Trading Week contains the first Trading Day of a Trading Month, under clause 9.3.5 in accordance with the settlement cycle timeline, AEMO must recalculate the Individual Reserve Capacity Requirements applicable for each Trading Day in that Trading Month, using the methodology described in Appendix 5, and must provide to each Market Participant the recalculated Individual Reserve Capacity Requirements for that Market Participant applicable for each Trading Day in that Trading Month by the Relevant Settlement Statement Date for the Trading Week.

4.28.12. AEMO must document the process to be followed in calculating

Indicative Individual Reserve Capacity Requirements and Individual Reserve Capacity Requirements in a WEM Procedure.

4.28.13. AEMO must publish on the WEM Website the following ratios

calculated by it when it determines the Indicative Individual Reserve Capacity Requirements or the Individual Reserve Capacity Requirements for a Trading Month, or recalculates the Individual Reserve Capacity Requirements for a Trading Month as required by clause 4.28.11A:

$a$ NTDL_Ratio as calculated in accordance with Step 8A of Appendix 5;

$b$ TDL_Ratio as calculated in accordance with Step 8C of Appendix 5; and

$c$ Total_Ratio as calculated in accordance with Step 10 of Appendix 5.

Intermittent Load Refunds

4.28A. Intermittent Load Refunds

Explanatory Note

Clause 4.28A.1(c) is amended as a consequence of Consequential Outages being removed from the Outages framework and to reflect the new registration taxonomy.

Clause 4.28A.1 is further amended for weekly settlement.

4.28A.1. AEMO must determine for each Intermittent Load that is and

continues to be deemed to be an Intermittent Load under clause 1.48.2, registered to Market Participant p the amount of the refund (“Intermittent Load Refund”) to be applied for each Trading Day d in respect of that Intermittent Load as the sum over all Trading Intervals t of Trading Day d of the product of:

$a$ the Trading Interval Refund Rate for Trading Interval t for the Intermittent Load as determined in clause 4.28A.1A; and

$b$ [Blank]

$c$ the capacity shortfall for Trading Interval t of Trading Day d which is the greater of zero and:

i. double the MWh of the Intermittent Load metered during that Trading Interval, where for the purpose of this calculation the metered amount should be defined at the meter rather than being Loss Factor adjusted so as to be measured at the Reference Node, less;

ii. if the Energy Producing System described in clause 2.30B.2(a) is subject to a Planned Outage in the Trading Interval that would affect the energy production capability of the Energy Producing System, the quantity nominated for that Intermittent Load by its Market Participant in accordance with clause 4.28.8(c); less

iii. 3% of the quantity nominated for that Intermittent Load by its Market Participant in accordance with clause 4.28.8(c); less

iv. for Trading Intervals where the temperature data described in clause 4.28A.2 shows a temperature in excess of 41^oC and the Energy Producing System described in clause 2.30B.2(a) is not subject to a Planned Outage or Forced Outage in the Trading Interval that would affect the energy production capability of the Energy Producing System, the capacity reduction, if any, specified in accordance with clause 2.30B.3(b)(i).

4.28A.1A. The Trading Interval Refund Rate for an Intermittent Load f in

the Trading Interval t is determined as follows:

Trading Interval Refund Rate(f,t)=RF(f,t) × Y(f,t)

where:

$a$ Trading Interval Refund Rate (f,t) is the Trading Interval Refund Rate for Intermittent Load f in Trading Interval t;

$b$ RF(f,t) is the refund factor for Intermittent Load f in Trading Interval t, which is the lesser of:

i. six; and

ii. the greater of 1 and the dynamic refund factor RF dynamic(t) as determined under clause 4.26.1(d); and

$c$ Y(f,t) is the per Trading Interval capacity price associated with Intermittent Load f in Trading Interval t, which equals the Reserve Capacity Price divided by 12 then divided by the number of Trading Intervals in the relevant Trading Month in which Trading Interval t falls.

4.28A.2. To support the implementation of clause 4.28A.1(c)(iv):

$a$ AEMO must record the following temperature data for Energy Producing Systems in respect of which this clause 4.28A applies and for which, in accordance with clause 2.30B.3(b)(ii), a valid method for measuring ambient temperature was indicated:

i. the publicly available maximum daily temperature associated with those Energy Producing Systems for which temperature is defined in accordance with clause 2.30B.3(b)(ii)(1); and

ii. temperatures measured by the SCADA system for those Energy Producing Systems for which temperature is defined in accordance with clause 2.30B.3(b)(ii)(2).

$b$ [Blank]

Explanatory Note

Section 4.28B is deleted.

Section 4.28B enabled new small generators (i.e. with a nameplate capacity of ≤1 MW) to apply for Capacity Credits outside the standard process and timelines for a Reserve Capacity Cycle. Instead, new small generators will be required to comply with the standard processes and timelines for certification of Reserve Capacity and assignment of Capacity Credits and Network Access Quantities set out in this Chapter ### 4.

The new NAQ framework is unable to accommodate assignment of Capacity Credits outside the standard processes.

4.28B. [Blank]

Explanatory Note

Section 4.28C enables Market Participants with new facilities that require a long lead time to apply to AEMO for early certification of Reserve Capacity. Currently, an application may be made for eligible facilities for a Capacity Year prior to 1 January of Year 1 of the Reserve Capacity Cycle relating to that Capacity Year.

The ability for a Market Participant to make an application for early certification of Reserve Capacity will continue subject to the following key changes:

applications may only be made up to two years before the start of the relevant Reserve Capacity Cycle;
Market Participants will need to demonstrate to AEMO that the project requires a lead time longer than the start of the Reserve Capacity Cycle in which Capacity Credits are being sought for the facility; and
eligible facilities will be assigned certified Reserve Capacity and an Indicative NAQ. However, the number of Capacity Credits and a Final NAQ will only be determined for the facility at the time, and in accordance with, the standard processes and timeframes for the Reserve Capacity Cycle in which Capacity Credits for the facility are being sought.

For example, Capacity Credits for an application for Early Certified Reserve Capacity that is submitted by a Market Participant in the 2021 Reserve Capacity Cycle – for which Capacity Credits are being sought for the facility for the 2022 Reserve Capacity Cycle – will only be determined and assigned to the facility by AEMO on 30 September 2022.

Early Certification of Reserve Capacity

4.28C. Early Certification of Reserve Capacity

4.28C.1. This section 4.28C is applicable to Facilities to which the

following conditions apply:

$a$ the Facility is a new Facility;

$b$ the Facility is an Energy Producing System;

$c$ the Facility is deemed by AEMO to be committed.; and

$d$ AEMO is satisfied that:

i. the construction of the Facility cannot be achieved within the Reserve Capacity Cycle for which Capacity Credits are being sought for the Facility; and

ii. the Commissioning Tests for the Facility cannot be achieved before the commencement of the Capacity Year for which Capacity Credits are being sought for the Facility.

4.28C.1A. In forming its opinion under clause 4.28C.1(d), AEMO may have

regard to the type of Energy Producing System for which Capacity Credits are being sought for the Facility, and any required augmentation of the SWIS or construction of other infrastructure.

Explanatory Note

Clause 4.28C.2 is amended to restrict applications for Early Certified Reserve Capacity being made more than two years prior to the start of the Reserve Capacity Cycle for which Capacity Credits are being sought for a facility.

4.28C.2. A Market Participant with a Facility that meets the criteria in

clause 4.28C.1 may apply to AEMO, at any time, but no earlier than two years, before 1 January of Year 1 of the Reserve Capacity Cycle to which the application relates, for certification of Reserve Capacity and Capacity Credits for that Facility (“Early Certified Reserve Capacity”).

4.28C.2A. AEMO must acknowledge receipt of an application made under

clause 4.28C.2 within five Business Days of receiving the application.

4.28C.2B. Where AEMO considers that the Facility does not meet the

criteria in clause 4.28C.1, AEMO must reject an application made under clause 4.28C.2 in respect of the Facility and must notify the relevant Market Participant of the rejection and AEMO's reasons for the rejection as soon as practicable.

4.28C.3. Each application for Early Certified Reserve Capacity must

relate to a single future Reserve Capacity Cycle. AEMO must not accept more than one application for certification of Reserve Capacity per Facility per calendar year.

4.28C.4. An application under clause 4.28C.2 must state that the

applicant intends to trade all assigned Certified Reserve Capacity bilaterally as defined in clause 4.14.2.

Explanatory Note

Clause 4.28C.5 is amended as the information requirements in section ### 4.10.1 relate to Facility Technology Types and Facility Classes and requires a nomination for the Facility to be classified as a Network Augmentation Funding Facility.

4.28C.5. An application made under clause 4.28C.2 must include:

$a$ the nomination required by clause 4.4.1(d)(vi) of whether the Facility is expected to be classified as a Network Augmentation Funding Facility; and

$b$ the information specified in section 4.10 that is required to be provided for the appropriate type of Facility Technology Type and Facility Class for the Facility to which the application relates to.

Explanatory Note

Clause 4.28C.6 is amended as Capacity Credits will only be determined and assigned to the Facility in Year 1 of the Reserve Capacity Cycle to which the application for Early Certified Reserve Capacity relates.

4.28C.6. AEMO must process each application made in accordance with

clause 4.28C.2 so as to determine the Early Certified Reserve Capacity for the Facility.

Explanatory Note

Clause 4.28C.7 is amended to alter the timeframe for AEMO to assess and determine the Early Certified Reserve Capacity for the Facility. AEMO will assess the application when it next undertakes the process for assessing and assigning applications for Certified Reserve Capacity under section 4.11.

For example, for an application submitted under clause 4.28C.2 in December 2021 – which relates to the 2023 Reserve Capacity Cycle – AEMO will set the Early Certified Reserve Capacity for the Facility when it assesses applications for certified Reserve Capacity for the 2022 Reserve Capacity in or about August 2022.

4.28C.7. Where AEMO has received an application under clause 4.28C.2

prior to the date and time under clause 4.1.5, AEMO must set Early Certified Reserve Capacity for the Facility:

$a$ to that amount it would normally grant the Facility if processing an application for Certified Reserve Capacity in accordance with section

4.11; and

$b$ at the time AEMO next processes applications for Certified Reserve Capacity in accordance with section 4.11.

Explanatory Note

Clause 4.28C.7A requires AEMO to determine an Indicative NAQ for the Facility when it next determines NAQs for Facilities under section ### 4.15.

See Step 14 of Part A and Part B of Appendix 3.

For example, for an application submitted under clause 4.28C.2 in December 2021 – which relates to the 2023 Reserve Capacity Cycle – AEMO will set the Indicative NAQ for the Facility when it assesses applications for certified Reserve Capacity for the 2022 Reserve Capacity in or about August 2022.

4.28C.7A. Where AEMO has received an application under clause 4.28C.2,

AEMO must determine an Indicative Network Access Quantity for the Facility in accordance with Appendix 3 at the time AEMO next determines Network Access Quantities for Facilities under section 4.15.

4.28C.7AA.Where AEMO has previously determined an Indicative Network

Access Quantity for a Facility in accordance with Appendix 3, and at the time AEMO next determines Network Access Quantities in accordance with Appendix 3 it does not determine a Final Network Access Quantity for that Facility, then AEMO must revise the Indicative Network Access Quantity in accordance with Appendix 3.

Explanatory Note

Clause 4.28C.7B requires AEMO to notify the applicant of the Early Certified Reserve Capacity set for the Facility and the Indicative NAQ determined for the Facility by 31 October of the year in which both assessments are undertaken by AEMO.

4.28C.7B. By 5:00 PM on the last Business Day falling on or before 31

October of the year in which AEMO sets the Early Certified Reserve Capacity for the Facility under clause 4.28C.7 and determines the Indicative Network Access Quantity for the Facility under clause

4.28C.7A, AEMO must notify the applicant of the Indicative Network

Access Quantity determined for the Facility under clause 4.28C.7A.

Explanatory Note

Clause 4.28C.7C requires AEMO to notify the applicant of any revised Indicative NAQ determined for the Facility by 31 October of the year in which the assessment is undertaken by AEMO.

4.28C.7C. By 5:00 PM on the last Business Day falling on or before 31

October of the year in which AEMO determines the revised Indicative Network Access Quantity under clause 4.28C.7AA, AEMO must notify the applicant of the Indicative Network Access Quantity determined for the Facility under clause 4.28C.7AA.

4.28C.7D. AEMO must publish the following information on the WEM Website

by the date and time specified in clause 4.1.16A(d):

$a$ the name of each Facility for which an Indicative Network Access Quantity has been determined for a Facility under clause 4.28C.7A and the Indicative Network Access Quantity determined for the Facility; and

$b$ the name of each Facility for which a revised Indicative Network Access Quantity has been determined for a Facility under clause

4.28C.7AA and the revised Network Access Quantity determined for the

Facility.

4.28C.8. Within 30 Business Days of the applicant receiving notification

by AEMO under clause 4.1.12 of the amount of Early Certified Reserve Capacity assigned to the Facility the applicant must ensure that AEMO holds the benefit of a Reserve Capacity Security equal to the amount specified in clause 4.28C.9.

4.28C.8A. If a Market Participant does not comply with clause 4.28C.8 in

full by the time specified in clause 4.28C.8, the Early Certified Reserve Capacity assigned to that Facility and the Indicative Network Access Quantity determined for that Facility will lapse.

4.28C.9. The amount for the purposes of clauses 4.28C.8 and 4.28C.12 is

25 percent of the Benchmark Reserve Capacity Price included in the most recent Request for Expressions of Interest at the time and date associated with clause 4.28C.8 or 4.28C.12 as applicable, multiplied by an amount equal to the Early Certified Reserve Capacity assigned to the Facility.

4.28C.10. [Blank]

4.28C.11. [Blank]

4.28C.12. Prior to the time and date specified in clause 4.1.13, in Year

1 of the first Reserve Capacity Cycle specified in clause 4.10.1(b) in which the Facility will enter service, AEMO must recalculate the amount of Reserve Capacity Security to be provided by each Market Participant in accordance with clause 4.28C.9 and:

$a$ If an additional amount of Reserve Capacity Security is required, the Market Participant must ensure that AEMO holds the benefit of the additional Reserve Capacity Security by the time and date specified in clause 4.1.13; and

$b$ If a reduced amount of Reserve Capacity Security is required, the Market Participant may request AEMO to return any additional Reserve Capacity Security, in accordance with clause 4.13.14, provided that at all times AEMO holds a Reserve Capacity Security to the level determined in accordance with this clause 4.28C.12.

4.28C.12A From the time and date specified in clause 4.1.13 of Year 1 of

the first Reserve Capacity Cycle in which the Facility will enter service, all of the provisions of section 4.13 apply equally to the Reserve Capacity Security of Facilities with Early Certified Reserve Capacity.

4.28C.13. [Blank]

4.28C.14. [Blank]

4.28C.15. AEMO must document the process for the application of this

section 4.28C and the matters AEMO will have regard to in forming its opinion under clause 4.28C.1(d) in a WEM Procedure.

Settlement Data

4.29. Settlement Data

Explanatory Note

Clause 4.29.1 is amended as a consequence of the deletion of the Reserve Capacity Auction, and to remove redundant references to previous Reserve Capacity Cycles.

Clause 4.29.1 (and section 4.29) was amended pursuant to RCM Pricing Reforms to accommodate the changes to the price to be paid for Reserve Capacity from the 2019 Reserve Capacity Cycle. To facilitate the pricing reforms, the clause was restructured so that clause 4.29.1 calculates the annual Reserve Capacity Price, instead of a Facility Monthly Reserve Capacity Price which is now calculated in accordance with clause ### 4.29.1A.

As a result of the RCM Pricing Reforms and the deletion of the Reserve Capacity Auction, Facilities will receive the same Reserve Capacity Price except in two situations.

Firstly, if the Facility is a Transitional Facility and the Reserve Capacity Cycle is a Transitional Reserve Capacity Cycle, the Reserve Capacity Price for the Facility will be as determined in accordance with clause 4.29.1B. A Transitional Facility is an existing Facility (other than a DSP) that was assigned Capacity Credits in the 2018 Reserve Capacity Cycle. A Transitional Facility will be assigned Capacity Credits at the Reserve Capacity Price subject to a floor of $114,000 and a cap of $140,000. The cap and floor prices will be escalated in each of the subsequent nine Reserve Capacity Cycles (i.e. up to and including the 2028 Reserve Capacity Cycle) by the Reserve Bank of Australia's Statement of Monetary Policy forecast Consumer Price Index for June of Year 3 of the relevant Reserve Capacity Cycle in accordance with clause ### 4.29.1C.

Secondly, if the Facility is a Fixed Price Facility and the Reserve Capacity Cycle is a Fixed Price Reserve Capacity Cycle for that Fixed Price Facility, the Reserve Capacity Price for the Facility will be the value determined in accordance with clause 4.29.1D. A Fixed Price Facility is a Facility that will be assigned Capacity Credits at the Reserve Capacity Price in the first Reserve Capacity Cycle in which it is classified as a Fixed Price Facility. That Reserve Capacity Price will be escalated in each of the subsequent four Reserve Capacity Cycles by the Reserve Bank of Australia's Statement of Monetary Policy forecast Consumer Price Index for June of Year 3 of the relevant Reserve Capacity Cycle.

Upgrades of Facilities will receive the same Reserve Capacity Price as the parent Facility unless the upgrade is a separate Facility for the purposes of the WEM Rules. The main reason for this approach is the absence of separate metering for the parent Facility and any associated upgrade.

Clause 4.29.1(b) is further amended to correct a transcription error by removing the brackets around ‘surplus + BRCP Cap Factor’.

4.29.1. The Reserve Capacity Price for a Reserve Capacity Cycle to apply

during the period specified in clause 4.1.29 is to equal:

$a$ for the 2018 Reserve Capacity Cycle, the value calculated using the following formula:

\[MIN\\\left( \frac{BRCP \times 1.141}{1 - \left( (surplus + 0.03) \times - 4.7 \right)} \right),BRCP \times 1.1\\\]

where:

BRCP is the Benchmark Reserve Capacity Price determined in accordance with section 4.16; and

surplus is the pro rata excess capacity calculated as follows:

$surplus = {\lbrack max}{(0,(}\frac{CC - RCR}{RCR})$]

where:

CC is the total number of Capacity Credits assigned by AEMO in accordance with clause 4.20.5A for the Reserve Capacity Cycle; and

RCR is the Reserve Capacity Requirement for the Reserve Capacity Cycle;

$b$ for a Reserve Capacity Cycle from the 2019 Reserve Capacity Cycle onwards, the value calculated using the following formula:

max (Segment 1, Segment 2, 0) * BRCP

where:

\[Segment\\1 = \frac{EZ\\BRCP\\Factor - BRCP\\Cap\\Factor}{EZ}x\\surplus\]

+ BRCP Cap Factor

\[Segment\\2 = \frac{EZ\\BRCP\\Factor}{EZ - AZ}x\\(surplus - AZ)\]

BRCP is the Benchmark Reserve Capacity Price determined in accordance with section 4.16;

BRCP Cap Factor is 1.3;

EZ BRCP Factor is 0.5;

EZ is 0.1;

AZ is 0.3; and

surplus is the pro rata excess capacity calculated as follows:

$surplus = {\lbrack max}{(0,(}\frac{CC - RCR}{RCR})$]

where:

CC is the total number of Capacity Credits assigned by AEMO in accordance with clause 4.20.5A for the Reserve Capacity Cycle; and

RCR is the Reserve Capacity Requirement for the Reserve Capacity Cycle.

4.29.1A. The Facility Monthly Reserve Capacity Price for a Reserve

Capacity Cycle to apply during the period specified in clause 4.1.29 is equal to:

$a$ for the 2018 Reserve Capacity Cycle, the Reserve Capacity Price for the Reserve Capacity Cycle divided by 12; and

$b$ for a Reserve Capacity Cycle from the 2019 Reserve Capacity Cycle onwards:

i. [Blank]

ii. for a Transitional Facility during a Transitional Reserve Capacity Cycle, the value determined in accordance with clause 4.29.1B;

iii. for a Fixed Price Facility during a Fixed Price Reserve Capacity Cycle for that Fixed Price Facility, the value determined in accordance with clause 4.29.1D for that Fixed Price Facility; or

iv. for all other Facilities, the Reserve Capacity Price for the Reserve Capacity Cycle divided by 12.

4.29.1B. The Facility Monthly Reserve Capacity Price for a Transitional

Facility during a Transitional Reserve Capacity Cycle is the value calculated using the formula below:

TFMRCP = Min(max(Reserve_Capacity_Price, Trans_Floor), Trans_Ceiling) / 12

where:

TFMRCP is the Facility Monthly Reserve Capacity Price for the Transitional Facility in the current Transitional Reserve Capacity Cycle for that Transitional Facility;

Reserve_Capacity_Price is the Reserve Capacity Price as determined in accordance with clause 4.29.1 for the Reserve Capacity Cycle;

Trans_Ceiling equals $140,000 for the 2019 Reserve Capacity Cycle and for each subsequent Transitional Reserve Capacity Cycle, the value as escalated in accordance with clause 4.29.1C(a); and

Trans_Floor equals $114,000 for the 2019 Reserve Capacity Cycle and for each subsequent Transitional Reserve Capacity Cycle, the value as escalated in accordance with clause 4.29.1C(b).

4.29.1C. The escalation factors used in clause 4.29.1B are equal to:

$a$ For Trans_Ceiling:

Trans_Ceiling = Trans_Ceiling_[previous] × max(1, (1+CPI))

where:

Trans_Ceiling_[previous] is the value of Trans_Ceiling published for the previous Transitional Reserve Capacity Cycle; and

CPI is the latest published value of the Reserve Bank of Australia's Statement of Monetary Policy forecast Consumer Price Index for June of Year 3 of the relevant Transitional Reserve Capacity Cycle; or if that value is not available, the mid-point of the Reserve Bank's latest published target range of inflation, at the time AEMO undertakes the calculation in clause 4.29.2A.

$b$ For Trans_Floor:

Trans_Floor = Trans_Floor_[previous] × max(1, (1+CPI))

where:

Trans_Floor_[previous] is the value of Trans_Floor published for the previous Transitional Reserve Capacity Cycle; and

CPI is the latest published value of the Reserve Bank of Australia's Statement of Monetary Policy forecast Consumer Price Index for June of Year 3 of the relevant Transitional Reserve Capacity Cycle; or if that value is not available, the mid-point of the Reserve Bank's latest published target range of inflation, at the time AEMO undertakes the calculation in clause 4.29.2A.

Explanatory Note

The requirement for AEMO to publish the values determined for Trans_Floor and Trans_Ceiling are relocated from clause 10.5.1(f)(ivB) to new clause 4.29.1CA as below.

Following the consultation period for Exposure Draft 2, clause ### 4.29.1CA is further amended to include a requirement to also publish the annualised version of the Facility Monthly Reserve Capacity Price for a Transitional Facility.

4.29.1CA. AEMO must publish on the WEM Website:

$a$ the values determined for Trans_Ceiling and Trans_Floor in accordance with clause 4.29.1C that are used in the formula in clause

4.29.1B; and

$b$ the value determined by multiplying the Facility Monthly Reserve Capacity Price for a Transitional Facility determined in clause 4.29.1B by 12.

4.29.1D. The Facility Monthly Reserve Capacity Price for a Fixed Price

Facility during a Fixed Price Reserve Capacity Cycle for the Fixed Price Facility is:

$a$ for the first Reserve Capacity Cycle for which a Facility is classified as a Fixed Price Facility, the Reserve Capacity Price divided by 12; and

$b$ for each subsequent Fixed Price Reserve Capacity Cycle for the Fixed Price Facility, the value calculated in accordance with the following formula divided by 12:

FRCP = FRCP_[previous] × max (1, (1+CPI))

where:

FRCP is the Facility Monthly Reserve Capacity Price for the Fixed Price Facility in the current Fixed Price Reserve Capacity Cycle for that Fixed Price Facility;

FRCP_[previous] is the Facility Monthly Reserve Capacity Price for the Fixed Price Facility in the previous Fixed Price Reserve Capacity Cycle for that Fixed Price Facility; and

CPI is the latest published value of the Reserve Bank of Australia's Statement of Monetary Policy forecast Consumer Price Index for June of Year 3 of the relevant Fixed Price Reserve Capacity Cycle; or if that value is not available, the mid-point of the Reserve Bank's latest published target range of inflation at that time, at the time AEMO undertakes the calculation in clause 4.29.2A.

4.29.2. [Blank]

Explanatory Note

Clause 4.29.2A is amended as a consequence of the deletion of the Reserve Capacity Auction.

Clause 4.29.2A specifies the times by which AEMO will be required to determine the Facility Monthly Reserve Capacity Prices referred to in clause 4.29.2B.

4.29.2A. AEMO must determine the information specified in clause 4.29.2B

by the date and time specified in clause 4.1.16A.

4.29.2B. For each Reserve Capacity Cycle AEMO must determine the

following information in accordance with this section 4.29:

$a$ the Facility Monthly Reserve Capacity Price for a Transitional Facility if the Reserve Capacity Cycle is a Transitional Reserve Capacity Cycle;

$b$ the Facility Monthly Reserve Capacity Price for each Fixed Price Facility for which the Reserve Capacity Cycle is a Fixed Price Reserve Capacity Cycle; and

$c$ the Facility Monthly Reserve Capacity Price for all other Facilities.

Explanatory Note

Clause 4.29.3 is amended as a consequence of the deletion of the Reserve Capacity Auction, to reflect the new registration taxonomy and for weekly settlement.

Clause 4.29.3 is also amended pursuant to the October 2021 RCM Pricing Amendments, including as a consequence of tranche based dispatch payments for DSPs will cease from the 2019 Reserve Capacity Cycle (i.e. from the 2021 Capacity Year) and to introduce a Facility specific price for Reserve Capacity.

Clause 4.29.3(d)(i) is further amended to:

remove the reference to Special Price Arrangements, which are no longer used in the WEM; and
replace the full stop at the end of clause 4.29.3(d) with a semi-colon.

4.29.3. AEMO must determine the following information in time for

settlement of each Trading Day d:

$a$ the Facility Monthly Reserve Capacity Price for each Facility applying during that Trading Month;

(aA) the Facility Daily Reserve Capacity Price for each Facility applying during that Trading Day;

$b$ the Targeted Reserve Capacity Cost for that Trading Day as defined in clause 4.28.3;

$c$ the Shared Reserve Capacity Cost for that Trading Day as defined in clause 4.28.4;

$d$ for each Market Participant p and for Trading Day d:

i. the quantity of Capacity Credits (including Capacity Credits from Facilities subject to NCESS Contracts) for each Facility acquired by AEMO;

ii. the quantity of Capacity Credits for each Demand Side Programme for Trading Day d;

iii. [Blank]

iv. the quantity of Capacity Credits for each Facility traded bilaterally in accordance with section 4.30;

v. the Individual Reserve Capacity Requirement for each Market Participant for that Trading Month in which Trading Day d falls;

vi. the total Capacity Cost Refund to be paid by the Market Participant to AEMO for all Trading Intervals in Trading Day d; and

vii. the total Participant Capacity Rebate to be paid to the Market Participant by AEMO for all Trading Intervals in Trading Day d;

(dA) for each Market Participant, the sum over all of Market Participant p’s Intermittent Loads, deemed to be Intermittent Loads under clause 1.48.2, of the Intermittent Load Refund payable to AEMO by Market Participant p in respect of each of its Intermittent Loads for Trading Day d; and

$e$ for each Supplementary Capacity Contract:

i. the net payment to be made by AEMO under that contract for the Trading Day d; and

ii. to whom the payment is to be made.

4.29.4. [Blank]

Explanatory Note

Clause 4.29.5 is being added to clarify that the Reserve Capacity Price to be paid for early entry facilities will be the Reserve Capacity Price for the Capacity Year immediately prior to the start of the relevant Capacity Year. This reflects the current practice.

4.29.5. Where a Facility first enters service prior to 1 October of Year

3 of a Reserve Capacity Cycle and Reserve Capacity Obligations apply to the Facility in accordance with clause 4.1.26, then for the period between commencement of the Reserve Capacity Obligations for the Facility and up to the start of the Trading Day on 1 October of Year 3 of that Reserve Capacity Cycle, the Facility Monthly Reserve Capacity Price for the Facility for that period is equal to the Reserve Capacity Price for the Capacity Year immediately preceding 1 October of Year 3 of that Reserve Capacity Cycle divided by 12.

Explanatory Note

Sections 4.30 and 4.31 are added to move capacity credit allocation from chapter 9 (sections 9.4 and 9.5) to Chapter 4, changes in taxonomy, change to clause references in Chapter 9. Changes also made to provide clarity to Market Participants regarding the cut-off time.

The clause numbering in new sections 4.30 and 4.31 is consistent with the numbering in sections 9.4 and 9.5.

Capacity Credit Allocations have changed from a monthly process which was included in the consultation. AEMO identified implementation issues where the monthly CCA would be effected by a transfer or reduction in capacity credits late in the month which would have an impact on prior trading week settlement.

Section 4.30 has been further amended as follows:

The rules permit a participant to revise a CCA; however, they do not require AEMO to check they have sufficient Capacity Credits to make the revision. [4.30.6]. This undermines a key rule concept.
The rules allow participants to amend CCAs after the termination of Capacity Credits; however, there are existing concepts that would allow participants to do this (by withdrawing a CCA and submitting another one). [4.30.10]. The current rule drafting for Capacity Credit Allocation amendments adds implementation complexity for no benefit to the market.
The rules put a 2 day deadline for CCA amendments to be resolved. This was previously important, as changes to CCAs would impact a Market Participant’s Trading Margin, and therefore is time-sensitive; however, this is no longer the case. [4.30.10 and 4.30.11] The current rule drafting for resolving Capacity Credit Allocation amendments within 2 days adds implementation complexity for no benefit to the market.
The rules put a requirement for AEMO to amend CCAs by 5PM on the Scheduling Day if a participant does not amend the CCAs by 5PM on the Scheduling Day. [4.30.11] This makes it impossible for AEMO to comply with the obligation by amending them exactly at 5PM on the Scheduling Day.
The current drafting also explicitly refers to terminations identified in clause 4.30.9. It should be written more generally to consider any situation where the CCAs for a Facility exceed the Capacity Credits (e.g. where a Facility is transferred, the outgoingl Facility owner having CCAs for a Facility they no longer own).

4.30. Daily Capacity Credit Allocation Process

4.30.1. A Market Participant may submit one or more Capacity Credit

Allocation Submissions in respect of a Facility by 5:00PM on the Scheduling Day for the respective Trading Day.

4.30.2. A Capacity Credit Allocation Submission must be submitted in the

form specified by AEMO and must include the information specified in clause 4.31.1.

4.30.3. Within one Business Day following receipt of a Capacity Credit

Allocation Submission, AEMO must:

$a$ decide whether to approve or reject the Capacity Credit Allocation Submission;

$b$ notify the submitting Market Participant of the decision;

$c$ if the decision is to reject the Capacity Credit Allocation Submission, notify the submitting Market Participant of the reason for the rejection; and

$d$ if the decision is to approve the Capacity Credit Allocation Submission, notify the Market Participant specified as the receiver of the Capacity Credits of the details of the Capacity Credit Allocation Submission.

4.30.4. AEMO must reject a Capacity Credit Allocation Submission in

respect of a Facility if the sum of the Capacity Credits:

$a$ proposed to be allocat6ed in the Capacity Credit Allocation Submission; and

$b$ proposed to be allocated in any other Capacity Credit Allocation Submission for that Facility by that Market Participant for the relevant Trading Day,

exceeds the number of Capacity Credits that are able to be traded bilaterally for that Facility by that Market Participant under the WEM Rules for the Trading Day.

4.30.5. AEMO must approve a Capacity Credit Allocation Submission if the

Capacity Credit Allocation Submission is not rejected in accordance with clause 4.30.4.

4.30.6. A Market Participant may withdraw a Capacity Credit Allocation

Submission in respect of a Facility at any time before 5:00 PM on the Scheduling Day for the respective Trading Day.

4.30.7. By submitting or withdrawing a Capacity Credit Allocation

Submission a Market Participant acknowledges that it is acting with the permission of all affected Market Participants.

4.30.8. Within one Trading Day after a Market Participant has withdrawn

a Capacity Credit Allocation Submission in respect of a Facility under clause 4.30.6, AEMO must notify the Market Participant specified as the receiver of the Capacity Credits that the Capacity Credit Allocation Submission for that Facility has been withdrawn.

4.30.9. If the termination of a Capacity Credit in respect of a Facility

results in the number of Capacity Credits allocated by a Market Participant in Capacity Credit Allocations for that Facility for a Trading Day exceeding the number of Capacity Credits held for that Facility for that Trading Day by the Market Participant that are allowed to be traded bilaterally under the WEM Rules, then AEMO must notify the Market Participant within one Trading Day after the notification of the termination.

4.30.10. Following receipt of a notice provided under clause 4.30.9, a

Market Participant may reduce the number of Capacity Credits allocated in respect of the relevant Facility by withdrawing Capacity Credit Allocations and submitting Capacity Credit Allocation Submissions in accordance with clauses 4.30.6 and 4.30.1, respectively.

4.30.11. If, at 5:00 PM on the Scheduling Day, the Capacity Credit

Allocations for a Market Participant with respect to a Facility exceeds the number of Capacity Credits held for the Facility, AEMO must, by 5:00 PM on the Trading Day for which the Capacity Credit Allocation relates:

$a$ amend all of the relevant Capacity Credit Allocations proportionally, to ensure that the sum of the Capacity Credit Allocations in respect of the relevant Facility for the Market Participant for the Trading Day equal the number of Capacity Credits held for that Facility; and

$b$ for each amended Capacity Credit Allocation, notify each affected Market Participant of the details of the amendment.

4.30.12. AEMO must develop a WEM Procedure dealing with:

$a$ Capacity Credit Allocations; and

$b$ other matters relating to sections 4.30 and 4.31.

4.31. Format of Capacity Credit Allocation Submissions

4.31.1. A Capacity Credit Allocation Submission must set out:

$a$ the identity of the submitting Market Participant, which must be the holder of Capacity Credits;

$b$ the identity of the Facility from which the Capacity Credits are to be allocated for settlement purposes;

$c$ the identity of the Market Participant to which the Capacity Credits are to be allocated for settlement purposes, which may be the submitting Market Participant; and

$d$ the number of Capacity Credits to be allocated for settlement purposes from the Market Participant which was the holder of Capacity Credits to the Market Participant which was allocated Capacity Credits, which may be the same Market Participant.

4.31.2. A Capacity Credit Allocation Submission in respect of a Facility

may allocate part of a Capacity Credit for that Facility provided that the number of Capacity Credits allocated is specified to a precision of 0.001 MW.

4.32. Capacity Credit Allocation Timeline

4.32.1. AEMO must publish the Capacity Credit Allocation Submission

timeline for a Financial Year at least one calendar month prior to the commencement of that Financial Year. The Capacity Credit Allocation Submission timeline must include:

$a$ the earliest date and time at which Capacity Credit Allocation Submissions for a Trading Day can be submitted, where this is to be not less than 10 Business Days prior to the start of the relevant Trading Day; and

$b$ the latest date and time at which Capacity Credit Allocation Submissions for a Trading Day can be submitted, where this is to be no later than 5:00 PM on the Scheduling Day.