The Australian Energy Market Operator (AEMO) announced the activation of a staged approach to lift the suspension of the National Energy Market (NEM).
In the week since AEMO took the decision to suspend the NEM, it has seen a clear improvement in market conditions. This includes 4,000 MW of generation returning from outages.
AEMO CEO Daniel Westerman said the operator would take a staged approach to lifting the market suspension.
It's expected that AEMO will formally end the suspension of the wholesale electricity spot market in all regions of the NEM from 2pm, 24 June (AEST).
After the first step is taken, AEMO would expect to see:
- the dispatch engine (used to schedule generation into the grid) operating with very few constraints
- a low volume of directions from AEMO to generators – instead they would respond to market signals
- a reduction in forecast shortfalls of energy as generators respond to those market signals.
AEMO will monitor these conditions for a further period of at least 24 hours before making a decision to lift the market suspension.
‘By removing these conditions, we hope that the market will return to a normal bidding and dispatch situation – allowing the market to operate without major AEMO interventions and manual management of generation,’ Mr Westerman said.
Conditions remain dynamic and AEMO will continue to monitor reserve conditions across all regions.