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Australian Energy Marketing Operator
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Australian Energy
Market Operator
2016 Annual Report

Transitioning to a new energy world

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Who are we

AEMO's vision – energy security for all Australians. AEMO plays an important role in supporting the industry to deliver a more integrated, secure, and cost effective national energy supply, for the long-term benefit of Australian consumers.

AEMO’s new role in Western Australia

AEMO is honoured to undertake the role of independent energy market operator and independent power system operator in Western Australia.

Western Australia WEM fast facts:

  • Total transacted in the WEM 2015-16

    $408million

  • Total registered generation capacity

    5,788megawatt

    Including 513 MW of non-scheduled generation
  • Terawatt hours the WEM supplies p/a

    18.7TERAWATT HOURS

Western Australia Gas Industry Development award

On Monday 14 December 2015, AEMO was presented with the prestigious Western Australia Gas Industry Development award for our contribution to the domestic gas market via our work on the WA GBB, WA GSOO, and related data visualisations on our website. The award recognised the importance of these initiatives, which aim to improve market efficiency, transparency, and competition.

Forecasting and planning

AEMO delivered strategic gas and electricity planning, and forecasting advice this financial year via the following reports.

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August, 2015

National Electricity Market Electricity Statement of Opportunities (NEM ESOO)

The annual NEM ESOO models information provided by industry to report on the adequacy of existing and committed electricity supply in the NEM to meet the maximum demand and annual consumption forecasts over the next 10 years.

November, 2015

National Transmission Network Development Plan (NTNDP)

The annual NTNDP provides an independent, strategic view of the efficient development of the National Electricity Market (NEM) transmission grid over a 20-year planning horizon.

December, 2015

National Gas Forecasting Report (NGFR)

The NGFR provides forecasts of annual gas consumption and maximum gas demand across eastern and south-eastern Australia’s interconnected gas markets over a 20-year outlook period.

March, 2016

Gas Statement of Opportunities (GSOO)

The annual GSOO uses the demand forecast scenarios from the NGFR to assess adequacy of gas infrastructure and resources to meet demand in eastern and south-eastern Australia over a 20-year outlook period.

June, 2016

Deferred 2015 Wholesale Electricity Market Electricity Statement of Opportunities (WEM ESOO) for the 2017–18 Capacity Year (WA)

The WEM ESOO is a key aspect of the Reserve Capacity Mechanism in Western Australia, which is valued at approximately $600 million in capacity payments. The Deferred 2015 WEM ESOO for the 2017–18 Capacity Year sets the Reserve Capacity Target (RCT), the quantity of generation capacity required in Western Australia’s South West interconnected system (SWIS) to ensure forecast peak demand is met between 1 October 2017 and 1 October 2018.

June, 2016

National Electricity Forecasting Report (NEFR) 2016

The NEFR provides trends in forecasts of overall electricity usage by electricity consumers, as well as forecasts of operational consumption and maximum and minimum demand from the grid in the NEM.

Security and reliability

The changing mix of synchronous and non-synchronous generation means that the operational characteristics of the power system are changing, and AEMO is focused on the impact that these changed dynamics have on future power system security.

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AEMO reports related to the Future Power System Security program published in 2015-16:

  • February, 2016

    Update to renewable energy integration in South Australia – Joint AEMO and ElectraNet report

  • April, 2016

    Response of Existing PV Inverters to Frequency Disturbances

  • June, 2016

    Submission to Queensland Renewable Energy Expert Panel

Electricity

Basslink Interconnector outage

On 20 December 2015, a fault occurred on the Basslink Interconnector running between Victoria and Tasmania, separating Tasmania from the National Electricity Market.

AEMO undertook short-term modelling throughout the outage to confirm there were no generation supply shortfalls in Victoria or Tasmania as a result of the outage.

AEMO worked closely with Basslink, TasNetworks, Hydro Tasmania, and the Victorian and Tasmanian state governments to ensure the appropriate arrangements were in place while the fault was being resolved. The Basslink Interconnector was returned to service on 13 June 2016.

Heywood interconnector outage

On 1 November 2015, an incident at transmission network service provider ElectraNet’s South East substation in South Australia, impacted electricity supply from Victoria to South Australia via the Heywood Interconnector, and separated South Australia from the National Electricity Market.

The outage resulted in a loss of 160 megawatts (MW) of customer load, causing electricity supply disruptions across regions of South Australia. AEMO worked closely with ElectraNet and SA Power Networks to restore load to the interconnector by 11.26pm.

Gas

Contingency Gas Events

The STTM Contingency Gas process was triggered twice for the Sydney STTM Hub in response to projected supply shortfalls.

These events were:

  • 22 July 2015 when a valve closed at a remote station on the Moomba to Sydney Pipeline.
  • 13 January 2016 when compressor issues on the Eastern Gas Pipeline resulted in projected delivery shortfalls.

In both cases the Contingency Gas process was activated and the issues were able to be resolved through the renomination of pipeline flows without Contingency Gas needing to be scheduled.

Brooklyn Compressor Station outages

There were two separate events impacting the capacity of the Brooklyn Compressor Station, which is a key facility in the DTS.

These were:

  • Gas flows for refilling of the Iona underground gas storage were restricted following the unplanned outage of two large compressors at the Brooklyn Compressor Station.
  • A planned 15 day outage of the entire Brooklyn Compressor Station that resulted in AEMO scheduling a total of 223 TJ of out-of-merit-order injections to support demand in south west Victoria. AEMO published an Intervention Report for this outage as required under the National Gas Rules.

Markets

The energy market is rapidly evolving and consumers are demanding greater control and choice, while technologies and consumer behaviour are driving changes in generation, metering, storage, products and services.

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AEMO continues to work closely with stakeholders to identify issues and opportunities for strengthening energy markets now and into the future.

Gas

A focus on efficiency and transparency.

  • New South Wales and Australian Capital Territory Gas Retail Project (NARGP)

    During 2015-16, AEMO worked with industry to successfully deliver the NARGP which went live as planned on 2 May 2016.

    The NARGP delivered the harmonisation of the NSW and ACT retail gas market arrangements with those operating in Victoria, Queensland and South Australia. These changes will result in efficiency gains for market participants.

  • Natural Gas Service Bulletin Board (NGSBB)

    The Curtis Island Demand Zone was introduced on 26 October 2015 to capture gas being delivered to the LNG processing facilities on Curtis Island near Gladstone. The zone resulted in the Wallumbilla to Gladstone Pipeline, GLNG Gas Transmission Pipeline and APLNG Pipeline all being defined as BB facilities and reporting to the NGSBB.

  • Moomba Gas Supply Hub

    On 1 June 2016, AEMO launched the Moomba Gas Supply Hub with the establishment of new trading locations at Moomba on the Moomba to Adelaide pipeline and the Moomba to Sydney pipeline.

Electricity

The Power of Choice program was launched in 2012 to give households and businesses the information, technology and pricing options to choose how they use electricity and manage their own costs. Three new Power of Choice rule changes:

  1. 1

    Competition in metering

  2. 2

    Embedded Networks

  3. 3

    Meter Replacement Process

Our stakeholders

One of AEMO’s strategic goals and core values is being impartial, balanced and thorough in our engagement with stakeholders on challenges and solutions. Our aim is to build stakeholder relationships that are collaborative and proactive.

  • 67

    Was the total of facilitated stakeholder forums held in 2015–16

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Renewable roadshow fast facts:

  • 6

    Two hour industry information sessions ran across Australia

  • 177

    Total number of participants contributing to the sessions

A total of 177 participants contributed to the sessions, representing electricity, gas, government, and other user groups. The team aimed to facilitate an authentic engagement opportunity to exchange ideas and views.

Our People

In 2015–16, AEMO continued to make progress against its People Roadmap 2015–17. The overarching objective of the Roadmap is to deliver a highly capable, agile and engaged workforce.

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People roadmap highlight:

46

Successfully integrated permanent and contractor employees from IMO into AEMO’s Western Australia office on 30 November 2015.

Workplace Health, Safety and Environment

AEMO maintained its focus on the Healthy Minds and Bodies, Safe Workplaces, and Sustainable Workplaces programs. The highlights for 2015-16 financial year were:

  • 11%

    of AEMO staff utilised counselling in the Employee Assistance Program. Comparative to the 3.7% industry standard

  • 61%

    participation rate of employees in the free health checks initiative

Sustainability

In September 2015, we proudly launched our Sustainability Program alongside our Sustainability Commitment, which was developed through consultation with employees across the organisation.

AEMO’s sustainability program aims to:

  • Reduce the environmental impact of corporate operations, and achieve greater resource and economic efficiencies.
  • Introduce sustainability considerations into AEMO’s procurement processes to make sure the products and services we use are consistent with our sustainability commitment.
  • Increase employee participation in volunteering activities to improve health and wellbeing among employees and the community.

Sustainability highlights 2015–16:

  • Pages of paper per person

    FROM 3,566
  • Energy use per person (kwh)

    FROM 10,747
  • Volunteering hours

    FROM 126

Graduate Development Program

Each year we recruit outstanding graduates to inject new ideas and energy into AEMO.

Graduate Development Program highlights 2015–16:

  • 470

    applications received

  • 8

    candidates were offered formal graduate positions

Graduate recruitment timeline