Across 2019 and 2020, the Australian Energy Market Commission (AEMC) received two rule change requests from Delta Electricity and Hydro Tasmania proposing mechanisms that efficiently value, procure and schedule essential system services that are not currently procured through the real-time market.
Directions paper
On 2 September 2021 the AEMC published a directions paper entitled Capacity Commitment Mechanism and Synchronous Services Market that considers the issues proposed in the two rule change requests, which have also been considered through the Energy Security Board’s post-2025 market design process.
The AER made a submission to the directions paper on 22 October 2021.
Draft determination
On 21 September 2022 the AEMC published the draft rule and determination for the Operational Security Mechanism rule change process (formerly known as Capacity Commitment Mechanism and Synchronous Services Market). This rule change combines two rule change proposals submitted by Hydro Tasmania and Delta Energy, and was initially explored through the Energy Security Board’s NEM post-2025 Essential System Services work programme. The rule change seeks to introduce a mechanism to procure, schedule, and dispatch system services in the operational timeframe in an effort to unbundle the provision of these services from the provision of energy.
The AER made a submission to the draft determination on 21 November 2022.
AER submission - Operational security mechanism draft determination - 21 November 2022
Second directions paper
On 24 August 2023, the AEMC published a second directions paper as part of its rule change consultation on Improving security frameworks for the energy transition (formerly known as the Operational security mechanism, or OSM).
The AER made a submission to the directions paper on 28 September.
AER submission - Improving Security Frameworks Second Directions Paper - 28 September 2023
More information
More information can be found at the AEMC’s consultation page.