Dr. Thomas questions the government about AEMO's demand reduction implementation in the wholesale electricity market. The parliamentary secretary responds that the government/Synergy isn't required to be advised and details how demand reduction is procured and paid for.

AnsweredQoN 471Legislative Council
Asked
14 May 2024
Portfolio
Energy

QuestionView source ↗

ELECTRICITY SUPPLY
471. Hon Dr STEVE THOMAS to the parliamentary secretary
representing the Minister for Energy:
I refer to the Australian Energy
Market Operator report Quarterly energy dynamics Q1 2024: April 2024 ,
detailing that procured demand reduction was implemented on the wholesale
electricity market on 14 occasions between 1 January 2024 and 31 March 2024.
(1) Was the
government or Synergy advised by AEMO of the details of the demand reduction
procured; and, if so, will the minister please table that advice?
(2) What specific
entities were served procured demand reduction notices and on what dates?
(3) For each of
the 14 demand reduction notices, what time frame was accorded, and what
specific and detailed costs and/or payments were associated?

AnswerView source ↗

I thank the honourable member for
some notice of the question. On behalf of the Minister for Energy, I provide
the following answer.
(1) The
government or Synergy is not required to be advised by AEMO on the details of
demand reduction services procured through the reserve capacity mechanism and
the supplementary reserve capacity mechanism in accordance with the wholesale
electricity market rules.
(2) Demand reduction procured through the reserve
capacity mechanism is dispatched by the Australian Energy Market
Operator in accordance with the relevant provisions in the wholesale
electricity market rules. Demand reduction procured through the supplementary
reserve capacity mechanism is activated in accordance with the contracts
between AEMO and the relevant service provider.
(3) Dispatch
notices for demand reduction procured through the reserve capacity mechanism
are issued up to two hours before the relevant dispatch interval. The length of
activation notices for demand reduction procured through the supplementary
reserve capacity mechanism is in accordance with the contracts between AEMO and
the relevant service provider.
Payments for demand reduction
procured through the reserve capacity mechanism are based on the prevailing
reserve capacity price calculated in accordance with the relevant provisions in
the wholesale electricity market rules. Payments for demand reduction procured
through the supplementary reserve capacity mechanism are in accordance with the
competitively procured contracts between AEMO and the relevant service provider—and
my tongue is sore!

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