On the 2 May 2017, ARENA entered into a Memorandum of Understanding (MOU) with the Australian Energy Market Operator (AEMO). The arrangement will facilitate collaboration around the organisations’ areas of mutual interest relating to ensuring electricity system security and reliability.
The shared program of work will focus on ARENA and AEMO’s common interests to:
- Demonstrate innovative ways of maintaining system security and reliability as the share of renewable energy grows.
- Promote the development and improve the effectiveness of the operation and maintenance of the wholesale exchange.
- Bring a specific focus to allow new and emerging technologies to be deployed into the market, e.g. ‘proof of concept’ projects.
To further these interests, the shared program of work may include:
- Existing system services from behind the meter resources (e.g. small-scale household generation such as rooftop solar).
- Existing system services from non-conventional grid-scale sources (e.g. improvements to large generators such as wind turbines so they can enhance power quality).
- New system services, whether behind-the-meter or grid-scale (e.g. inertia, fast frequency control ancillary services).
- New market information services (e.g. operational and price forecasting improvements, generation volatility, IT solutions, modelling to more accurately integrate variable renewables).
- Advanced grid management technologies (e.g. new protection schemes that work with low fault current or reverse flows).
Shared work on proof of concept projects was supported by the Finkel Review. ARENA and AEMO intend to plan and implement the program of work to support implementation of relevant recommendations from the Review.
In light of the changing mix of technologies in the electricity market, specifically the increase in renewable energy, this joint work will deliver on the COAG Energy Council ministers commitment in December 2016 to accelerate ‘proof of concept’ projects for grid security technologies.
Projects under the shared work program include: