Clause 4.25.1 of the Market Rules requires the IMO to take steps to verify that each Facility providing Capacity Credits can, during the term during which its Reserve Capacity Obligations apply, operate at its maximum Reserve Capacity Relevant Level. The IMO must verify that each of these Facilities can meet this requirement at least once during each of the following periods:
- 1 October to 31 March; and
- 1 April to 30 September.
Verification can be achieved:
- By the IMO observing in Metered Schedules specific to the Facility, that the Facility can operate at the required level at least once as part of the normal market operations.
- By the IMO requiring System Management, in accordance with clause 4.25.7 to Test the Facility's ability to operate at the required level for not less than 60 minutes and the Facility successfully passing that test.
Verification must be made on each type of fuel available to that Facility as notified under clause 4.10.1 (e)(v).
In keeping with the market objectives, the IMO has developed an internal procedure to ensure that, as far as possible, this testing can be undertaken in a manner that imposes the minimum level of costs on Market Participants.
General Verification of Facilities
- At the end of each month, the IMO will review the meter schedules of all generation Facilities that have a Reserve Capacity Obligation in excess of zero.
- The IMO will determine the meter schedules for all trading intervals in the month and identify those generators whose output has reached or exceeded their Reserve Capacity Relevant Level, adjusted for temperature where appropriate, in accordance with the Market Procedure for Reserve Capacity Testing.
- The IMO will record all those facilities that are determined to have achieved the relevant Reserve Capacity.
- As soon as practical after 1 January and after 1 July, as appropriate, the IMO will meet with System Management to identify all generators which are still required to demonstrate that they can operate at their Reserve Capacity Relevant Level.
- The IMO and System Management will prepare a schedule of Reserve Capacity Tests that are to be undertaken in accordance with the Market Procedure for Reserve Capacity Testing.
- To minimise out of merit operation, the IMO and System Management will seek to schedule tests over periods when high system demand is expected.
- Tests will be scheduled to take place prior to mid-February or mid-August, as appropriate, to ensure that any re-tests, if required, can be completed within the timeframe set out in Market Rule 4.25.4.
Verification of Facilities that use liquids as their primary or secondary fuel
- At the start of April and the start of October, the IMO will require System Management to undertake a Reserve Capacity test on each facility that uses liquid fuel as its primary or secondary fuel.
- This test is to be undertaken on the liquid fuel only.
- The test is to be undertaken by mid-August or mid-February, as appropriate, to allow sufficient time for re-testing if the facility does not meet its Reserve Capacity Relevant Level.
- This approach allows System Management to schedule tests, where possible, at times when liquid fuels are likely to be consumed to meet normal market operations.
- Any tests will be undertaken in accordance with the Market Procedure for Reserve Capacity Testing.
Demonstration of Capacity by a Market Participant
- Some Facilities only operate infrequently at maximum output or on liquid fuels.
- From time to time, Market Participants may operate these Facilities for the purposes of maintenance or operational testing.
- On those occasions, Market Participants should consider operating the Facility at an output level that will allow the IMO to verify that the Facility can comply with its Reserve Capacity Relevant Level and avoid additional tests.
Compliance Verification
- From time to time, the IMO may have cause to consider that a Facility is no longer able to meet its Reserve Capacity Relevant Level even though this may have been previously verified by observation or testing.
- In this situation, the IMO reserves the right to request System Management to undertake a Reserve Capacity test.
Verification and Testing of Facilities
This page is published in accordance with Market Rule 10.5.1(f)(viii). |
