The AEMC is seeking submissions on a rule change request that would require large electricity generators to provide at least three years’ notice before closing.
The request, from Energy Security Board (ESB) chair Dr Kerry Schott AO, is based on one of the recommendations in the Finkel Panel review.
The proposed rule would enhance the information available to the Australian Energy Market Operator (AEMO) and the market on generator closures.
This information would be included in AEMO’s medium and long-term forecasts.
“The Finkel review recommended a policy package to achieve an orderly transition to a low emissions future,” AEMC said in a statement.
“The package included putting in place notice of closure requirements for large generators to help manage the retirement of existing coal-fired generators as they reach the end of their economic lives.
“This would provide time for replacement capacity to be built and for affected communities to plan for change.”
Since the final report of the Finkel review was released, the Energy Security Board (ESB) has proposed the national energy guarantee (NEG).
The AEMC said its Reliability frameworks review is also considering complementary changes to energy market design to support the NEG’s objective in delivering long-term reliability at least cost.
This rule change request is being progressed within this broader context, and forms part of the Commission’s reliability work program.
Submissions on the consultation paper close June 7.