AEMC makes jurisdictional derogation to support reliability in South Australia

Source: www.gulfoilandgas.com 1/23/2025, Location: Not categorized

The Australian Energy Market Commission (AEMC) has made a final rule to help secure South Australia's electricity supply this summer. The decision allows two additional power stations to be considered as emergency backup power sources.

The temporary rule change enables the Australian Energy Market Operator (AEMO) to consider contracting Snuggery and Port Lincoln power stations (owned by ENGIE) in South Australia as emergency out-of-market reserves. This exemption from usual market restrictions will end on 31 March 2025.

Without sufficient backup electricity reserves, South Australia could face potential load shedding during severe cases of reliability shortfalls, particularly during extreme weather events. Such an outcome could severely impact households and businesses.

The Commission made this one-off exemption due to a combination of specific factors:

AEMO has identified worsening reliability risks for South Australia this summer
an insufficient response to AEMO's tender for emergency reserves has increased load shedding risks
two power stations (Snuggery and Port Lincoln) were unavailable due to mothballing.
While the Commission remains committed to preserving the wholesale market as the primary means of ensuring reliability, this temporary measure is warranted given the unique combination of factors that exist.

The rule change was processed urgently with one round of stakeholder consultation. No objections were received to using this expedited process.


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