Introduction of ramping services directions paper

PIAC responded to the Australian Energy Market Commission’s (AEMC) directions paper on a rule change to introduce ramping services.

PIAC considers new price signals are needed to ensure the availability of flexible generation, storage and demand side resources. Any capable provider should be eligible to participate in a flexibility market and receive ‘flexibility’ payments. The flexibility market should aim to incentivise new sources to enter the market where they would not have otherwise. It should not prioritise any particular provider, particularly not incumbent fossil generators which will become less common as the energy system transitions to zero-emissions.

On this basis, PIAC does not support Delta Electricity’s proposal for a ramping service as it limits the provision of this service to dispatchable in-service generators.

PIAC strongly recommends the AEMC consider a managed trajectory of accelerated emissions reductions in line with limiting global warming to 1.5°C as a factor in assessing the merits of the reserve services proposals.

PIAC considers that, unless trivial, adaptable or urgently required for system security, these should not progress in advance of more strategic and comprehensive market design processes such as the ESB’s Post-2025 market design.