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18RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20102.2.5 BALANCINGBalancing refers to the process of settling thedifference between market participants’ submittedsupply and demand curves and the amount ofelectricity produced or consumed in real time,taking into account dispatch instructions issuedby System Management and real time outages.The IMO settles the balancing market and transferspayments between market participants.2.2.6 THE RESERVE CAPACITY MECHANISMThe Reserve Capacity Mechanism ensures that thereis adequate generation and Demand Side Management(DSM) capacity to maintain reliability and security ofelectricity supply.A Capacity Credit is a notional commodity that can betraded between Market Participants. Capacity Creditsapply for a particular Reserve Capacity Year and areassigned to a specifi c generating plant or DSM facility.Generators, and providers of DSM, can apply forCapacity Credits by providing capacity into the SWIS.Market customers are assigned Individual ReserveCapacity Requirements based on their expectedmaximum demand, measured during periods ofsystem peak demand, plus a contribution to thesystem-wide reserve margin. The Individual ReserveCapacity Requirements are used to determine eachcustomer’s contribution to pay for the capacity onthe system. Capacity Credits can either be tradedbilaterally or through the IMO.2.2.7 SECURITY SERVICES –SPINNING RESERVESpinning reserve is extra generation capacity thatsits idling ready to quickly start up on requestby the system operator. It is needed for stabilisingfrequency variations in the supply network and forquickly compensating sudden changes in load.Spinning reserve is provided by those generators/energy suppliers that have made a commitment tothe market and the system operator to have theirgenerators constrained to a lower-than-maximumcapacity level of energy output.End users with peak demand can cause variations inenergy output, as can renewable generators such aswind turbines and solar arrays, which will generallyrequire substantial use of the spinning reserve service.Section 2.3.4 provides more detailed informationon the causes and effects of network voltage andfrequency control. Spinning reserve pricing andarrangements are subject to the Market Rules.2.2.8 OPPORTUNITIES FOR RENEWABLEENERGY GENERATORSWestern Australia is prospective for renewable energydevelopment due to its excellent resources andcomparatively high conventional generation costs.Low emissions electricity generation is expected toplay an increasing role in the state’s electricity supplyas a result of national greenhouse policy drivers,including the national renewable energy targetand the introduction of carbon pricing.Western Australia has excellent intermittentrenewable energy resources, including geothermal,solar, wave energy and wind energy. It also hassubstantial bioenergy resources distributed throughthe south-west of the State.The market objectives include the principle ofavoiding discrimination against particular energyoptions and technologies, specifi cally recognisingsustainable energy options and technologies thatmake use of renewable resources or reduce overallgreenhouse gas emissions. A number of the featureswere built into the electricity market design tofacilitate access by renewable energy resources:Intermittent renewable energy generators may·self-dispatch power into the STEM in recognitionof the limitations on their capacity to commit aday in advance;The contribution to system reliability of intermittent·renewable energy generators is recognised throughthe Reserve Capacity Mechanism; andPlanning of transmission upgrades must consider·distributed generation options.The rules of the WEM evolve over time. In 2009,consideration of issues for the market associatedwith large-scale integration of intermittent generationsources was initiated. Information on the latestmarket rules and proposed rule changes is availablefrom the Independent Market Operator’s website.Similarly, Western Power is reviewing its accessarrangements in light of a large number of applicationsfor connection from renewable energy generators.
2.3 Western Australia’sElectricity Network Infrastructure2.3.1 INTRODUCTIONThere are three major electricity networks inWestern Australia. These are:The South West Interconnected System (SWIS);·The North West Interconnected System (NWIS); and··The Esperance System.These three major networks are shown on theEnergy Resources and Infrastructure map below.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010While there are some privately owned electricitytransmission and distribution networks within the State,primarily in the Pilbara, Western Power (SWIS) andHorizon Power (non-SWIS) own the principal electricitynetworks that supply to the public. Horizon Poweralso owns and operates 29 isolated power systems.South West Interconnected System (SWIS).·This extends from Kalbarri in the North, to Albanyin the South, and Kalgoorlie to the East. It containsmore than 140 major substations, 6000km oftransmission lines (66 kV and above) and over64,000km of distribution lines (33 kV and below).North West Interconnected System (NWIS).·Is jointly owned and operated by Horizon Power asthe Regional electricity utility owned by the Governmentof Western Australia, Pilbara Iron, Alinta and BHPBilliton. It contains over 400km of high voltage lines,serving the communities of Dampier to Tom Pricethrough the Pilbara Iron Network and areas fromPort Hedland, Karratha, to Point Samson throughthe Horizon Power Network. Further informationcan be found at: www.nwis.com.au·Regional Networks. There are 29 separateRegional Networks, which are generally based onregional towns including Esperance, Kununurra,Kalgoorlie and Carnarvon.The SWIS has a load varying between about 1500and 4000W, which is small in comparison to someother networks. Unlike the National Electricity Market,the SWIS lacks interconnection with other networksand is unable to balance fl uctuations in networksupply and demand by supplying or receiving surpluspower from other systems. As a consequence,the SWIS is potentially more sensitive to fl uctuationsin load and generation.19RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAFigure 4. Western Australia Energy Resourcesand Infrastructure Map 2010Copies of the map are available at:www.energy.wa.gov.au
Page 1 and 2: enewableenergyhandbookWESTERN AUSTR
Page 3 and 4: ForewordOFFICE OF ENERGYRENEWABLE E
Page 5 and 6: OFFICE OF ENERGYRENEWABLE ENERGY HA
Page 9 and 10: 1.1 Purpose of the Handbook1.1.1 IN
Page 11 and 12: OFFICE OFENERGYRENEWABLE ENERGYHAND
Page 13 and 14: 1.2.2 BENEFITS TO WESTERN AUSTRALIA
Page 15 and 16: enewableenergy02
Page 17: 2.2 The WholesaleElectricity Market
Page 21 and 22: System ManagementSystem Management
Page 25 and 26: 2.5.3 STATE REGULATORY ANDGOVERNING
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Page 29 and 30: A number of different assessments w
Page 31 and 32: State and Australian Government dep
Page 33 and 34: Entry on the National Heritage list
Page 35 and 36: 3.4 EnvironmentalAssessment and App
Page 37 and 38: 3.5 Electricity NetworkConnections
Page 39 and 40: 3.5.7 DISPUTES OVER NETWORK ACCESSI
Page 41 and 42: 3.6 Other Approvals -Wave Energy Ap
Page 43 and 44: 3.8 Operational Approvals -Electric
Page 45 and 46: enewableOFFICE OF ENERGYRENEWABLE E
Page 47 and 48: A 1.1.4 SPECIFIC CONSIDERATIONSWind
Page 49 and 50: A 1.2.4 SPECIFIC CONSIDERATIONSIn u
Page 51 and 52: ·=A 1.4 Hydro EnergyA 1.4.1 INTROD
Page 53 and 54: A 1.7.3 TECHNOLOGIESHot rock proces
Page 55 and 56: A 2.1 Resources Availablein Western
Page 57 and 58: Wood represents 3.1 per cent of Aus
Page 59 and 60: The WA Geothermal Centre of Excelle
Page 61 and 62: A 3.1 Useful ContactsOFFICE OF ENER
Page 63 and 64: ····BCSE (2005), Waste to Energ
Page 65 and 66: A 3.3.2 COMMONWEALTH LEGISLATIONAbo
Page 67 and 68: A 3.5 Geographic InformationSystem
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OFFICE OF ENERGYRENEWABLE ENERGY HA
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TERMGasifi cationGasoholGreen Power
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Office of EnergyLevel 9Governor Sti
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