Australian Chart of the week | Is now the time to consider an operating reserve service?

This summer has already seen a number of instances of tightening supply/demand balance across the National Electricity Market (NEM). This has consequently resulted in a range of reactions from the market operator (AEMO) and other market stakeholders.

There were extreme weather events as well as fluctuating supply and disruptions. As a result, this saw AEMO activate its Reliability and Emergency Reserve Trader (RERT) in Victoria on 30 December and NSW on 4 January. In both instances, the regional price reached the Market Price Cap of $14,700/MWh.

This week we’ve been discussing the possibility of operating reserve in the NEM and the usage of RERT. Below is our Chart of the week summarising some of our thoughts.

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