AEMO says – all systems go, for Five Minute Settlement

The AEMO has emailed the ‘5MS Start Notice’ out to stakeholders this morning

Given the interest in Five Minute Settlement amongst readers here at WattClarity, I’ve copied most of the message in here and added some extra links and emphasis:

Dear 5MS Stakeholders,

On the basis of the 5MS readiness and risk assessment, AEMO has concluded that the NEM is ready to operate in accordance with the Five-Minute Settlement rule (including Global Settlement soft-start) as scheduled on 1 October 2021. Participants should prepare for the 5MS market start on 1 October 2021 accordingly.

Market Readiness Assessment

AEMO has completed its readiness assessment against the essential criteria required for the 5MS start notice.

The readiness assessment concluded that the market readiness criteria have been met and that the essential capability necessary for commencement of the Five-Minute Settlement market is ready.  The readiness assessment noted risks to successful operation of the 5-minute market and identified mitigations and contingency plans for these risks.

On the basis of the readiness and risk assessment, AEMO concludes that the NEM is ready to operate in accordance with the Five-Minute Settlement rule (including Global Settlement soft-start) as scheduled on 1 October 2021.

Contingency Arrangements

AEMO notes the AEMC is considering a rule change in relation to Contingency arrangements for five-minute settlement implementation. As the readiness assessment did not identify any unexpected contingency issues, AEMO has concluded that the date change contingency arrangements set out in the Rule Change request do not need to be triggered.  Accordingly, AEMO’s advice to the AEMC is that the 5MS market should commence on 1 October 2021 as scheduled.

Further Information

The readiness assessment was informed by, and completed in consultation with, market participants through the 5MS working groups.  The assessment was presented to the 5MS Industry Executive Forum on 30 August 2021 and is available here.

All market participants should prepare to operate in accordance with the National Electricity Amendment (Five-Minute Settlement) Rule 2017 No. 15 on 1 October 2021 as scheduled.

For more information, please see the 5MS webpages.             

5MS Program Team
Australian Energy Market Operator

Will look forward, with keen interest, to seeing what unfolds in October … and especially into summer 2021-22 as (perhaps) the first real test.