Energy Digest – June 2015

AEMO’s role in the National Electricity Market
AEMO is responsible for monitoring electricity consumption and the flow of energy across the power system. If there are system limitations or increases in consumption, AEMO makes adjustments and, if supplies are inadequate to meet consumption, AEMO may issue notices to the market for additional generation or directly intervene as a last resort. AEMO also monitors electricity voltage and frequency to make sure the system stays secure. It monitors the impact of planned power outages to make sure the system can accommodate any subsequent loss of generation or transmission capacity. AEMO controls the NEM via two identical control centres in different states. Each can seamlessly assume responsibility for the entire NEM if needed. Should consumption in a NEM region exceed supply, and all other means of meeting that consumption have been exhausted, AEMO can instruct network service providers to temporarily cut off the electricity supply to some customers, usually a large industrial customer. This action is only taken when there is an urgent need to protect the power system by reducing consumption and returning supply and demand in the system to balance. AEMO also operates the retail electricity markets across the NEM. These markets underpin the wholesale market by facilitating retail competition and enabling all customers to purchase energy from the supplier of their choice.

Source AEMO Australian Energy Market Operator