Emergency Response and the Interim Reliability Reserve (IRR) programs with the Australian Energy Market Operator (AEMO) provide significant benefits to participants while offering much needed support to the broader energy market.
Why should I participate?
With AEMO sounding the alarm in May for increased risk of blackouts, specifically noting that urgent investments in capacity in the NEM are needed to manage reliability risks. Forecast reliability gaps placing increased reliance on providers of essential system services, including for system strength, frequency management, voltage control, ramping capability, and system restoration services.[1]
What are the programs?
The Emergency Response and IRR programs enable businesses to participate in providing load shedding or emergency reserves to maintain reliable energy supply. Specifically, these two programs enhance grid stability and reliability as follows:
Emergency Response: Participants can help maintain grid stability during periods of high demand or unexpected supply shortages by reducing their electricity usage or increasing generation when called upon.
Interim Reliability Reserves (IRR): This program ensures additional reserves are available to meet reliability standards, thus preventing blackouts and maintaining a reliable electricity supply.
The IRR enables participants to accrue daily payments for capacity that may never be called on, equally the Emergency Response program offers lucrative payments for load shedding or generation capacity in times of significant demand on the grid.
What’s in it for me?
Participants in these programs are compensated for their involvement. This can include payments for availability and actual usage reduction or generation during emergency events.
These payments can provide a significant revenue stream for businesses and energy producers who can quickly adjust their electricity usage or generation.
These programs further support the integration of renewable energy by providing a buffer that helps manage the variability and intermittency of renewable energy sources.
Through market participation, the participating business establishes a more rapid understanding of what is happening in the energy market and can choose to respond accordingly. Businesses participating in these programs gain a deeper understanding of the energy market and its dynamics, leading to more informed energy management.
How does my business participate?
Typically, large energy consumers or those with flexible generation capacity are ideal candidates. PowerSync Technologies can quickly assess your businesses eligibility to the program and provide and provide a firm offer for participation.
Once you agree to participate, PowerSync Technologies completes the necessary registration process with AEMO. PowerSync will then handle all testing to ensure your facility meets the technical requirements for participation
Once registered, you will be enrolled in the program and can participate during emergency events. PowerSync will provide guidelines and training on how to respond during these events and will partner with you throughout the program.
PowerSync maintains compliance with program requirements and reports performance data as required by AEMO. This helps ensure transparency and the smooth operation of the programs.
For specific details and to initiate the subscription process, contact us now. PowerSync will provide a quick assessment and offer a seamless pathway to unlocking latent value in equipment loads or generation based at your site.
[1] Update to the 2023 Electricity Statement of Opportunities May 2024, AEMO 2024