Price Responsive Reporting

On 19 December 2024, the Australian Energy Market Commission (AEMC) made the National Electricity Amendment (Integrating price responsive resources into the NEM) Rule 20241 (IPPR Rule), which establishes a framework, called “dispatch mode”, that allows for aggregated resources, such as virtual power plants (VPPs), small stand-alone generators or energy storage systems, community batteries, flexible loads and other PRR to participate in NEM dispatch. Many PRR will not be capable of participating, or choose to participate, in dispatch mode.

Monitoring and Reporting framework for Unscheduled Resources

As the magnitude of these resources grows, AEMO will face further challenges forecasting demand in the NEM. To help understand the magnitude of this issue, the IPPR Rule introduces a monitoring and reporting framework for AEMO and the Australian Energy Regulator (AER). The key features of the framework are:

• Monitoring and reporting by AEMO to identify the presence and issues created by increased unscheduled PRR. This requires AEMO to report statistics on uptake of unscheduled PRR and operational forecast accuracy quarterly and annually provide commentary on the impact of unscheduled PRR on its operational forecasting and the measures it takes to improve where necessary it to account for the unscheduled PRR.
• Monitoring and reporting by the AER to assess the estimated efficiency implications and costs associated with actual demand deviating from forecasts due to unscheduled PRR.

The reporting framework will position the market bodies and participants to evaluate the impact of unscheduled price responsive resources on AEMO’s forecasts.

Timeline of AEMO and AER’s reporting requirements

AEMO’s price responsive reporting is part of a monitoring and reporting framework, put in place to ensure visibility of whether the forecasting processes adequately capture the operation of the active unscheduled PRR.

Actions to improve forecast accuracy in response to deteriorating forecast performance will be proposed in the annual reporting. These actions may include AEMO seeking access to additional data sources, improving forecasting processes/techniques or, in extreme cases, flagging that market design changes are required to ensure forecast accuracy is maintained at levels required for efficient power system and market operation.