Instantaneous reserve cost allocation to groups of generating units

Upcoming Open Closed Decision

View cross-submissions Cross-submissions closed 30 August 2024

Consultation

We would like to thank all those who engaged with this consultation. Submissions have been published below and are being carefully considered to inform our next steps.

This consultation seeks feedback on our proposal to update the way instantaneous reserve procurement costs are allocated to generators. We consider this would help ensure an affordable and reliable supply of electricity to consumers.

Instantaneous reserve is procured to make sure that consumers’ electricity supply is not impacted by an event causing a sudden loss of generation. Historically, the costs of procuring instantaneous reserve have been allocated to most of the parties whose potential loss of generation causes the need for instantaneous reserve procurement.

However, with evolving generation technology, there has been an increasing number of potential event causers who are not required to pay their share of the total instantaneous reserve procurement cost.

Our proposal intends to ensure that more of the causers of instantaneous reserve procurement are required to pay an appropriate share of the instantaneous reserve procurement costs, both now and in the future.

Consultation paper