On 24 November 2016 the Australian Energy Market Commission made a final rule to create a new type of market participant (a ‘Market Ancillary Services Provider’ (MASP)) who can do deals with energy users to offer demand response into the frequency control ancillary services (FCAS) markets.
A key change in what came beforehand was that the MASP need not be not need to be a customer’s Retailer to offer such demand response services. The market ancillary service provider is required to satisfy certain registration requirements and deliver FCAS services in accordance with AEMO’s specifications just as any other market participant currently is required to do.
The final rule amends certain provisions in Chapters 2 and 3 of the National Electricity Rules (NER) with effect from 1 July 2017. There are also transitional arrangements to allow AEMO to establish appropriate registration fees prior to the rule commencing.
There’s more information on the AEMC sub-site for project ERC0186 here, including links to the media release ‘Final determination on the Demand Response Mechanism and Ancillary Services Unbundling rule change’.
With respect to Demand Response in the ENERGY market:
1) In this development, the AEMC noted:
‘In light of the absence of any regulatory barriers in the Rules to the uptake of demand side participation, the Commission has not made a rule to implement the proposed demand response mechanism. The Commission considers the benefits associated with the proposed mechanism can be achieved without the need for a regulatory mechanism in the wholesale market, particularly as there are no barriers in the Rules to demand side participation in the market.’
2) But, of course, this stance was changed from 2021 with the introduction of the WDRM.
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