AEMO MN98805 continues Market Suspension (possibly only till Friday 04:05), but with different prices on a path out

To follow yesterday’s communication by the AEMO about a pathway for ending Market Suspension, this morning the AEMO published Market Notice 98805 as follows:

‘MARKET NOTICE 098805
________________________________________________________________________________________________

Notice ID            98805
Notice Type ID        Market suspended in region(s).
Notice Type Description    MARKET
Issue Date            Wednesday, 22 June 2022
External Reference        Electricity market suspension change of pricing regime
________________________________________________________________________________________________

AEMO ELECTRICITY MARKET NOTICE
Electricity market suspension change of pricing regime
Refer initial AEMO Electricity Market Notice 97704

The Spot Market remains suspended in the following regions with the following pricing regimes from Trading Interval 0405 hrs on 23 June 2022 until further notice:

New South Wales from Market Suspension Schedule Pricing to Dispatch Pricing (refer NER clause 3.14.5(d))
Queensland from Market Suspension Schedule Pricing to Dispatch Pricing (refer NER clause 3.14.5(d))
South Australia from Market Suspension Schedule Pricing to Dispatch Pricing (refer NER clause 3.14.5(d))
Tasmania from Market Suspension Schedule Pricing to Dispatch Pricing (refer NER clause 3.14.5(d))
Victoria from Market Suspension Schedule Pricing to Dispatch Pricing (refer NER clause 3.14.5(d))

Relevant Market Notices issued under this suspension:
97704
Manager NEM Real Time Operation’

The NER Clause 3.14.5(d) says:

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PS1 at ~11:00 (AEMO moves to lift Market Suspension)

This Market Notice coincided with an AEMO Press Conference and this Media Release (which KC flagged in this comment below … thanks!):

AEMO moves to lift Market Suspension

The Australian Energy Market Operator (AEMO) today announced the activation of a staged approach to lift the suspension of the National Energy Market (NEM).

Seven days since the market operator (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.

In making the announcement, AEMO CEO Daniel Westerman said the operator would take a staged approach to lifting the market suspension.

“The first step is that at 4am tomorrow, we will allow the market to set the price again,” Mr Westerman said.

“The second step will be to completely lift the suspension,” he said.

Mr Westerman said that after the first step was taken, AEMO would expect to see:

• • the dispatch engine, that is the system 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; and
  • a reduction in forecast shortfalls of energy, or low reserves, as generators respond to those market signals.

He said that AEMO would 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,” he said.

Mr Westerman praised collaboration across federal, state and territory governments, alongside the industry, saying the actions taken had allowed the market operator to make this move.

“Last week when AEMO suspended the market, we put the security of the grid, and keeping the lights on above everything else,” he said.

“We asked generators to bid their plant back into the system – and that is happening more – giving us greater visibility of generation in real time.”

Conditions remain dynamic and AEMO will continue to monitor reserve conditions across all regions.

ENDS

So my reading of this is that the earliest the Market Suspension would be lifted is 04:05 on Friday 24th July.

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