Early Certified Reserve Capacity

Overview

Early Certified Reserve Capacity (CRC) allows proponents of new Energy Producing Systems to apply for Early Peak and Flexible CRC up to two years prior to 1 January of Year 1 of the Reserve Capacity (RC) Cycle.

The Early CRC process, implemented in accordance with clause 4.28C of the Electricity System and Market (ESM) Rules, provides an early assessment pathway for new long-lead time facilities that cannot meet the standard CRC process timelines. Early CRC applies to one future RC Cycle only and does not roll over to subsequent cycles.

  • Eligibility Requirements

    Eligibility Requirements

    To be assigned Early CRC, a Facility must meet all the eligibility requirements outlined below.

    Table 1 - Eligibility Criteria for Early CRC

    Eligibility criterion  Description

    New Energy Producing System

    The Facility must be a new Facility and an Energy Producing System. Demand Side Programmes are not considered Energy Producing Systems and are therefore not eligible.

    Construction and commissioning timeline

    AEMO must be satisfied that the Facility cannot reasonably be constructed and commissioned within the standard Reserve Capacity timelines.

    Committed Status

    The Facility must be assessed by AEMO as having ‘Committed’ status, meaning the applicant has demonstrated binding commitments in relation to the Facility. Applicants must submit a Committed Status application in line with Appendix B of the WEM Procedure: Declaration of Bilateral Trades, supported by evidence such as Arrangement for Access, financial approval, funding arrangements, details of planning and construction applications and approvals.

    AEMO acknowledges the longer construction lead times involved with Early CRC projects and this will be considered during the assessment of a Committed Status application. Applicants are still expected to provide complete information and evidence to support their application.

    Additional considerations

    AEMO may also consider the Facility’s technology type and whether any network upgrades or new infrastructure are required for it to connect to the SWIS.

     

  • Applying for Early CRC

    Applying for Early CRC

    1. Early CRC Eligibility Form

    Applicants must first submit an Early CRC Eligibility Form and a Committed status form before progressing to the indicative Facility Class (IFC) and Early CRC application stages.

    To allow sufficient time for review, it is recommended that the form be submitted to the WA Capacity Investment & Assessment team at least 10 Business Days before the Indicative Facility Class (IFC) submission deadline.

    Assessment Outcome

    • Rejected: If the Facility does not meet clause 4.28C.1 requirements, AEMO will reject the eligibility request and advise the applicant of the outcome.
    • Accepted: If eligible, applicants may proceed to submit their IFC and Early CRC applications in accordance with the published timeline provided in Table 4.

    2. Indicative Facility Class Form

    Before submitting an Early CRC application, applicants must apply for an IFC and one or more Indicative Facility Technology Types (IFTT), as required under clause 4.8A.3 of the ESM Rules.

    The IFC confirms the Facility’s indicative classification and technology type(s) for Early CRC assessment. Additional details on the IFC and IFTT requirements are available here.

    3. Early CRC Application Form

    An Early CRC application must include all information required for a standard CRC application under clause 4.10.1 of the ESM Rules. This includes, but is not limited to:

    • Evidence of network access (Arrangement for Access, accepted Access Proposal, or a Network Operator confirmation).
    • Environmental approvals, or evidence they will be granted in time for the Facility to meet its obligations.

    Assessment Outcome

    • Rejected: If the application does not meet the requirements under clause 4.10 and clause 4.28C of the ESM Rules, AEMO must reject the application and will advise the applicant of the outcome.
    • Accepted: AEMO will assign Peak Early CRC and Flexible Early CRC in accordance with clause 4.11 of the ESM Rules and will determine an Indicative Network Access Quantity (NAQ) for the Facility at the next NAQ determination in accordance with Appendix 3 and clause 4.15 of the ESM Rules.
  • How AEMO Assess Early CRC

    How AEMO Assess Early CRC

    The table below outlines the key processes AEMO follows when assessing Early CRC applications.

    Table 2 - Key processes for Early CRC

    Key processes Description

    Assessment timing

     

    • Early CRC applications are assessed when AEMO next processes CRC applications in line with the timing set out in clause 4.11 of the ESM Rules.
    • Refer to Table 4 for specific timelines, including deadlines for Early CRC Eligibility forms and IFC applications.

    Bilateral Trade Declaration

    • Applicants must declare their intention to bilaterally trade all Early CRC assigned to their Facility. This declaration is included in the Early CRC application.

    Assessment process

    • Early CRC is assessed using the ESM Rules and WEM Procedures that apply at the time the CRC application window closes (as set out in clause 4.1.11 of the ESM Rules). Changes to the regulatory framework or Facility’s configuration after the Early CRC assessment are not taken into account.
    • The assessment uses the information and data published for that year, including inputs from WEM Electricity Statement of Opportunities, such as the ESR Duration Requirement.
    • Early CRC applications are not re-assessed in future years, including Year 1 of the RC Cycle when Capacity Credits and Final NAQ are assigned.

    Reserve Capacity Security

    • Applications that meet the requirements of clause 4.28C of the ESM Rules are assigned Early CRC and an Indicative NAQ in accordance with Appendix 3 of the ESM Rules.
    • Within 30 Business Days (BDs) of receiving notification, the applicant must ensure AEMO holds the benefit of a Reserve Capacity Security (RCS).
    • The RCS is calculated at 25% of the Peak Benchmark Reserve Capacity Price (BRCP), multiplied by the number of Peak Early CRC assigned.
    • Prior to the deadline in clause 4.1.13 of the ESM Rules in Year 1 of the relevant RC Cycle, AEMO recalculates the required RCS.
    • If the required RCS amount changes, applicants must either provide additional security or may request a refund of any excess, ensuring AEMO holds the correct level of RCS at all times.

    Assignment and Carry-Forward

    • The Early CRC and the Indicative NAQ are carried forward from the assessment year to Year 1 of the applicable RC Cycle. In Year 1 of the RC Cycle, AEMO these values to determine the Final NAQ and assign Capacity Credits.

     

Early CRC Application Process Flowchart

The following flowchart shows the steps involved in an Early CRC application, including key milestones and the actions required by both applicants and AEMO.

Example – End-to-End process of Early CRC Application

The example below shows how an Intermittent Generating System (IGS) enters the Reserve Capacity Mechanism (RCM) through an Early CRC application submitted in the 2026 RC Cycle for the 2027 RC Cycle (Capacity Year 2029–30).

Table 3 - Early CRC Application: Year-by-Year Example

Year CRC outcomes

2026

  • A Market Participant submits an Early CRC application in the 2026 RC Cycle for an IGS Facility for the 2029-30 Capacity Year (2027 RC Cycle). The Facility is assessed under the ESM Rules applicable to the 2026 RC Cycle.
  • AEMO assigns Early CRC and determines an Indicative NAQ.

2027

  • Regardless of any changes to the ESM Rules or WEM Procedures applicable to the 2027 RC Cycle, AEMO determines the Final NAQ and assigns Capacity Credits for the Facility’s first year of commercial operation based on the Early CRC and Indicative NAQ assessment in the 2026 RC Cycle.

2028

  • The Facility is now considered an existing Facility and is assessed under the ESM Rules and WEM Procedures in effect at the time, through the standard CRC process using the applicable Relevant Level Methodology.

2029

  • The Facility assessed in 2026 for the 2027 RC Cycle, and assigned Capacity Credits and a Final NAQ as part of the 2027 CRC assessment, must meet its Reserve Capacity Obligations for the 2029-30 Capacity Year.

 

Timelines and next steps for Early CRC applicants

  • Early CRC applicants for the 2029-30 Capacity Year (2027 RC Cycle) or the 2030-31 Capacity Year (2028 RC Cycle) that submitted an IFC application by the deadline (19 May 2026) may progress to meet the deadlines in Scenario 1 of Table 4.
  • IFC applications submitted after this date (19 May 2026) will be assessed under the 2027 RC Cycle timeline as shown in Scenario 2 of Table 4.

Table 4 - Timelines for Early CRC applicants

Processes Scenario 1: Early CRC applications submitted in the 2026 RC Cycle Scenario 2: Early CRC applications submitted in the 2027 RC Cycle
Deadlines Notes Deadlines* Notes

Early CRC Eligibility Form

5:00pm, 5 May 2026

It is recommended applicants submit the form before this date.

5:00pm, 5 May 2027

It is recommended applicants submit the form before this date.

IFC submissions

5:00pm, 19 May 2026

IFC submissions close.

5:00pm, 19 May 2027

IFC submissions close.

Early CRC Applications

5:00pm, 24 June 2026

Early CRC submission deadline.

5:00pm, 24 June 2027

Early CRC submission deadline.

AEMO notifies each applicant of the Early Peak CRC and Early Flexible CRC to be assigned to their Facility

5:00pm, 12 August 2026

AEMO notifies applicants of the Early CRC outcome.

5:00pm, 12 August 2027

AEMO notifies applicants of the Early CRC outcome.

Provide RCS for Peak Early CRC

5:00pm, 23 September 2026

Applicants must provide RCS for Peak Early CRC within 30 BDs of Early CRC notification, in line with WEM Procedure: Reserve Capacity Security.

The RCS amount is 25% of Peak BRCP multiplied by the quantity of assigned Peak CRC. 1

5:00pm, 23 September 2027

Applicants must provide RCS for Peak Early CRC within 30 BDs of Early CRC notification, in line with WEM Procedure: Reserve Capacity Security.

The RCS amount is 25% of Peak BRCP multiplied by the quantity of assigned Peak CRC.

AEMO notifies each applicant of the Indicative NAQ determined for their Facility

5:00pm, 30 September 2026

AEMO notifies applicants of the Indicative NAQ.

5:00pm, 30 September 2027

AEMO notifies applicants of the Indicative NAQ.

1 The 2026 Peak BRCP applies to Early CRC application submitted during the current 2026 RC Cycle. Facilities cannot request a recalculation of Early CRC until the time and date specified in clause 4.1.13 of Year 1 of the RC Cycle.

*The 2027 RC Cycle timeline shown in Scenario 2 is indicative only, reflecting the current requirements of the ESM Rules.

Resources

Email completed forms to the WA Capacity Investment & Assessment team at [email protected] by the specified deadlines.

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