Certification of Reserve Capacity
The reliability of the SWIS depends on generators and DSM providers delivering the capacity that they have offered. The IMO undertakes a certification process through which it satisfies itself that any facility assigned Capacity Credits will be able to meet its obligations and provide capacity when required. Each year, all facilities wanting to apply for Capacity Credits in the Reserve Capacity Mechanism must apply for Certified Reserve Capacity.
In applying for Certified Reserve Capacity for a facility, a Market Participant may need to provide:
- Details of the facility’s capacity and temperature dependence;
- Evidence of transmission network access arrangements;
- Information on environmental approvals;
- Evidence of contracted fuel supplies;
- Information about the expected availability of the facility; and
- Key project dates for new facilities.
The process of certification takes place predominantly in July and August each year. The certification process is guided the Market Procedure for: Certification of Reserve Capacity.
Certified Reserve Capacity does not automatically entitle a Market Participant to receive Capacity Credits or any associated payments. Capacity Credits can only be assigned at the Bilateral Trade Declaration stage or through the Reserve Capacity Auction process.
Annual Publication of Certified Reserve Capacity
Each year, the IMO assigns Certified Reserve Capacity to generation and demand side management facilities. In accordance with Market Rule 10.5.1(f)(iiiA), the quantity of Certified Reserve Capacity assigned to each facility is provided below. (Please note that clause 10.5.1 (f)(iiiA) commenced on 8 July 2011.)
Information for Applicants for Certified Reserve Capacity (including submission templates)
To assist Market Participants with the process of applying for Certified Reserve Capacity, the IMO has prepared the document below that details the information required to be submitted in support of an application.
Sample templates for the Certification Process and the Bilateral Trade Declaration Process are provided below:
RC Certification for Block_DSP_Load [66 bytes]
RC Certification for DSP Load [566 bytes]
RC Certification for Non Scheduled Generators [347 bytes]
RC Certification for Scheduled Generators [444 bytes]
BLT Submission Template [139 bytes]
A guide to completing the templates above can be found in the File Exchange Specification.
Reserve Capacity Certification Workshop - 2 May 2013
Specific information related to Certification of Reserve Capacity
Specific information may be found in the sections below related to Certification of Reserve Capacity for Intermittent Generators, as well as the following process:
- Conditional Certified Reserve Capacity;
- Early Certified Reserve Capacity; and
- Certified Reserve Capacity for New Small Generators.
Certification of Reserve Capacity for Intermittent Generators
The Market Rules provide for the Certification of Reserve Capacity in respect of Intermittent Generators.
Commencing in 2012, the calculation of Certified Reserve Capacity for Intermittent Generators will be based on a new Relevant Level Methodology that is detailed in Appendix 9 of the Market Rules. This methodology is based on the concept of Load for Scheduled Generation, which is explained in more detail in the document below.
Appendix 9 of the Market Rules requires the IMO to publish the Existing Facility Load for Scheduled Generation by 1 June of Year 1 of the Reserve Capacity Cycle.
This data is contained in the Excel file below. Please note that this is subject to change prior to the calculation of Certified Reserve Capacity due to updates of meter data, updated data from System Management and changes to the set of Candidate Facilities.
Note (30 Nov 2012): This file has been updated to correct an error. The selected Trading Interval on 28/1/2011 has been corrected from 12:00 to 13:00.
If the Intermittent Generator is yet to enter service, the estimates of facility output must be contained in a report provided by an independent expert accredited by the IMO (see Market Rule 4.10.3 and 4.10.3A). The IMO has accredited the following independent experts to prepare reports:
|EMET Consultants Pty Ltd||Stephen Pupilli, Managing Director||(08) 9755 1000||(08) 9478 email@example.com|
|Energetics Pty Ltd||Gilles Walgenwitz, General Manager – Power & Water Utilities||(02) 9492 9529||(02) 9929 3922||Gilles.Walgenwitz@energetics.com.au|
|GHD Black & Veatch Pty Ltd||Neville Horner, Manager||(08) 9429 6628||(08) 9323 firstname.lastname@example.org|
|KEMA Consulting||Dan Candotti, Manager Business Development||(02) 8243 7700||(02) 8243 email@example.com|
|SKM MMA (Sinclair Knight Merz)||Ross Gawler, Principal Consultant||(03) 8668 3065||(03) 8668 firstname.lastname@example.org|
|GL Garrad Hassan||Christian Peake, Senior Engineer||(03) 9600 1993||(03) 9602 1714||Christian.Peake@gl-garradhassan.com|
|Senergy Econnect Australia||Andrew Jones, Business Development Manager||(03) 8628 9200||(03) 8628 email@example.com|
Conditional Certified Reserve Capacity
Conditional Certified Reserve Capacity
Project proponents may apply to the IMO for Conditional Certified Reserve Capacity at any time in advance of the usual certification process. This conditional certification process seeks to provide potential investors with greater certainty in securing financing and when negotiating bilateral contracts. The information required with an application for Conditional Certified Reserve Capacity is the same as for normal certification.
A project proponent holding Conditional Certified Reserve Capacity for a future Reserve Capacity Cycle must re-apply for Certified Reserve Capacity for that cycle during the usual certification window. When the Market Participant applies for final certification, if no information upon which the conditional certification was based has changed and all approvals required normally for certification are provided, then it will automatically be certified. Applications for Conditional Certified Reserve Capacity are subject to a processing fee.
Early Certified Reserve Capacity
Early Certified Reserve Capacity
The Early Certified Reserve Capacity process allows new generation projects with long lead times to secure Capacity Credits earlier and provide greater certainty for investors. Early Certified Reserve Capacity, and subsequently assigned Capacity Credits, are granted for the applicable Capacity Year without the requirement to re-apply for Certified Reserve Capacity during the usual certification window.
Applications for Early Certified Reserve Capacity can be lodged at any time prior to the commencement of Year 1 of the Reserve Capacity Cycle in which the new facility will first enter service. To be eligible for Early Certified Reserve Capacity, a facility must be deemed to be "Committed" and the proponent must declare its intention to trade all assigned capacity bilaterally. The proponent must then provide Reserve Capacity Security within 30 days of approval of Early Certified Reserve Capacity.
Further information on the Early Certified Reserve Capacity process can be found in the Market Procedure for: Certification of Reserve Capacity.
New Small Generators
Certified Reserve Capacity for New Small Generators
The standard Reserve Capacity processes provide for a 2-year timeline between the bilateral trade/auction process and the commencement of the obligations associated with capacity credits. This is done to allow time for new peaking generators to be installed if required. However, small generators can be installed much more quickly.
For this reason, generators of capacity not exceeding 1 MW can secure Capacity Credits on a shorter timeline. When such a generator begins operating its operator can apply to the IMO for Capacity Credits from the start of the next Capacity Year (1 October). It can reapply for Capacity Credits each year until the commencement of the first Capacity Year for which it could have secured Capacity Credits through the normal process since the facility commenced operation.
Further details on this process can be found in the Market Procedure for: Treatment of New Small Generators.