The AEMC is currently considering a rule change request from Infigen Energy to introduce a reserve service in the NEM in tandem with consideration of a request from Delta Electricity to introduce a ramping service. The outcome will feed into the Energy Security Board’s consideration of the need for a reserve service under their post 2025 market design for the NEM work. AGL has indicated that it is not clear that a reserve service is needed, but if a new mechanism is required to address a risk of insufficient reserves in the NEM then a reserve service is the one that it would favour. While the directions paper provides only limited detail on how the reserve service would work in practice, AGL has indicated that it favours a shorter timeframe so that the reserve service market encourages capacity capable of responding to the rapid variability of wind and solar.
Read our submission here.