Supplementary Reserve Capacity

The Australian Energy Market Operator (AEMO) has called for Supplementary Reserve Capacity for only the second time since WA’s electricity market was deregulated in 2006.  More capacity may be required to ensure there is enough generation capacity to meet revised higher demand forecasts and cover for generators that are not operational or are having fuel supply issues.

The Supplementary Reserve Capacity (SRC) is a mechanism that allows AEMO to contract for additional generation capacity to be on standby in case of high demand and lack of generation.  AEMO has called a tender for the summer of 22/23 for SRC that closed on 21 October 2022. 

The cost of SRC is not yet known and will greatly depend on how much of the additional generation capacity is used through the coming summer.  While some of the costs will be borne by the generators that in part caused the shortfall in capacity, a large proportion of the costs will be borne by customers.

Change Energy will provide more details to customers on how these costs will be allocated once more information is known.