Addressing the Imperative for a Revamped RERT Program in the Wake of Victoria's Storms

This week's storms in Victoria, resulting in transmission tower damage, widespread blackouts, and the shutdown of Loy Yang A power station, serve as a stark reminder of the potential for unexpected events to wreak havoc on our electricity market and the communities it serves.

During stressful times like these, a robust Reliability and Emergency Reserve Trader (RERT) program is essential. While it may not have entirely prevented the impact of the recent storm, an enhanced RERT could have offered valuable support and minimised disruptions. This could have been achieved by providing the option for loads to be curtailed, rather than relying solely on automated load shedding regimes that result in expansive customer disconnections.

It's clear that the current RERT program is in need of a major overhaul to ensure its effectiveness and value to the market. There is significant potential for leveraging Demand Response capacity to bolster emergency reserves, but this requires a concerted effort and commitment from market stakeholders.

A revamped emergency reserve program not only strengthens the electricity market but also enhances its appeal to industries of all kinds, particularly high-tech companies reliant on stable and reliable power supplies.

However, designing such a program presents a challenge, particularly for the Australian Energy Market Operator (AEMO), which traditionally focuses on generation rather than demand-side initiatives. As I've previously suggested, it may be beneficial to establish a separate body with expertise in customer loads and Demand Response to spearhead the development of an effective emergency reserves program tailored to the unique needs of the National Electricity Market (NEM).

Let's work together to ensure the resilience and reliability of our electricity supply, even in the face of unforeseen challenges.