Western Australia: a new opportunity for large energy users

20 Feb 2009Archived News Energetics in the News

The Western Australian Independent Market Operator (IMO) is seeking Expressions of Interest for the provision of existing or new generating capacity and demand side management options within the South West Interconnected System (SWIS). The SWIS supplies the south west of Western Australia and communities north to Kalbarri, south to Albany and east to the Goldfields.

 

If you are a large energy user with capacity for load sharing and load curtailment, Energetics can help your business better understand this opportunity by assessing the feasibility, reliability and cost effectiveness of using curtailable load and dispatchable onsite generators.

It is important to understand that generation plants and demand side management options must be offered to the system at all times, unless it is undergoing an approved outage.

The Process

The call for Expressions of Interest is the first step to secure new capacity that will be available for service from October 2011 through to October 2012.

Based on current maximum demand forecasts and the expected reserve capacity for 2010/11, there is an estimated need for 55 MW of additional capacity to cover the requirement for the 2011/12 capacity year (from October to October).

All Expressions of Interest should be submitted by the 1st of May 2009.

Interested, potential suppliers will then be invited to apply for certification of Reserve Capacity for their proposed facility/demand management options between the 1st of May and the 20th of July 2009. Suppliers whose proposed generation plant/demand management options are certified may apply in August 2009 for assignment of Capacity Credits.

Potential new revenue

It is intended that capacity credit payments will be made in 12 monthly payments from October 2011 to generators and demand side management providers, in return for making their capacity available to the system.

For the 2010/11 capacity year, a capacity credit in the Wholesale Electricity Market is worth $144K per MW per year. With the recent changes in the global economic environment the capacity credit price for 2011/12 is likely to be lower, however this may nonetheless offer a real benefit to your business.

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