Ancillary Services Parameters – Load Rejection and System Startup

ERA – Economic Regulation Authority

Jan 07
Ancillary Services Parameters – Load Rejection and System Startup

On 7 January 2016, the Economic Regulation Authority (ERA) released an issues paper requesting public submissions on proposed Load Rejection and System Startup parameters for the period 1 July 2016 to 30 June 2019.

Current Ancillary Service contracts for these functions are due to expire at the end of June 2016 and System Management is undertaking a competitive tender process with generators to provide the services in the future.  The parameters published in the issues paper are based on the indicative pricing from the tendering process.  System Management proposes to update the parameter values as the tender process continues.

Year Status Load rejection

($’000s per annum)

System Restart

($’000s per annum)

2013/14 Approved 0 508
2014/15 Approved 0 527
2015/16 Approved 0 534
2016/17 Proposed 0 929
2017/18 Proposed 0 3,273
2018/19 Proposed 0 3,355
[separator style_type=”none” top_margin=”20″ bottom_margin=”0″ sep_color=”” border_size=”” icon=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” class=”” id=””]Public submissions are sought on the proposed values by 5 February 2016.

Load rejection constitutes a payment to generators selected (by System Management) to be shut down quickly to maintain system frequency within prescribed levels in the event of a system failure such as a transmission trip.  In 2015, the approved value of load rejection was zero and as System Management is not proposing an increase to the quantity of load rejection required (120MW), the forecast remains at zero.

System restart constitutes a payment to generators to provide a system restart under black system conditions (restoring a power station without drawing from the grid or mains generators in order to re-energise the grid and power up other generators).  System Management has divided the SWIS into three areas within which system restart should be available – North Metropolitan, South Metropolitan and South Country.  System Management noted that there is not currently a contract for system restart in South Country and so the increase in the system restart values between 2016/17 and 2017/18 reflects the additional investment required for this service to be made available.