Every three years, the ERA reviews the method used to certify capacity for intermittent generators, such as wind and solar farms. As these generators have less control over their output, the capacity certification method acknowledges this variability.
In March 2019, the ERA completed its review of the method for the capacity valuation of renewable energy technologies in the Wholesale Electricity Market Rules - referred to as the relevant level method. After receiving feedback from stakeholders, the ERA recommended changing the method.
The market rules require the ERA to progress recommendations from its review as a rule change proposal. While any proposed rule change is in development, the current relevant level method will continue to apply. In accordance with clause 4.11.3C of the Market Rules the ERA has determined the following values for the parameters K and U in step 17 of the current relevant level method. After the approval and implementation of the proposed rule change these parameters will no longer apply.
| Reserve capacity cycle |
Capacity year |
K value |
U value |
| 2019 |
2021/22 |
0.000 |
0.635 |
| 2020 |
2022/23 |
0.000 |
0.635 |
| 2021 |
2023/24 |
0.000 |
0.635 |
| 2022 forward |
2024/25 forward
|
0.000 |
0.635
|
Development of the rule change proposal
The ERA has developed a rule change proposal and submitted it to the Rule Change Panel, after a delay to address possible interactions between the proposal relevant level method and Energy Policy WA's proposed amendments for the constrained network access regime.
The ERA presented a preliminary rule change proposal to the Market Advisory Committee on 17 November 2020 seeking feedback. The ERA received one written submission on the preliminary rule change proposal, from Alinta Energy. This submission is published below.
ERA papers
The ERA published a draft report on 21 December 2018 to seek feedback from market participants and interested parties on the Relevant Level Methodology. The consultation period closed on Monday, 18 February 2019. The ERA published a final report on 31 March 2019.
Public submissions
We received eight submissions in response to our draft report, and one submission in response to the preliminary rule change proposal. These submissions are available in the table below.
Progress updates
The ERA Secretariat has established a working group to assist with the review. Regular status updates will be made public here as well as any presentations to the working group or to the Market Advisory Committee. These documents are working notes only and do not represent the official views of the ERA.
