Capacity Credit Allocations in Energy Markets
Explore the process of Capacity Credit Allocations (CCAs) in energy markets where credits held by one participant are allocated to another for settlement. Learn about key rule-based and procedure-based changes, CCA submission process, and standing submission lists. Follow a detailed example of how CCAs are generated for trading days.
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Presentation Transcript
Capacity Credit Allocations WRIG 25 November 2021
Context Capacity Credit Allocations (CCAs) are the process by which Capacity Credits held by one Market Participant for a Facility are allocated to another Market Participant for settlement purposes. Key rule-based changes to the process are: Capacity Credit Allocations occur on a Trading Day Removal Removal of Capacity Credit Allocation Acceptances Removal Removal of Capacity Credit Allocation reversals Withdrawals Withdrawals may occur any time before 5pm on Removal Removal of Trading Margin validations Trading Margin validations. Trading Day basis (previously Trading Month). Acceptances. reversals. before 5pm on the Scheduling Day the Scheduling Day. Key procedure-based change to the process is: Introduction of Capacity Credit Allocation Standing Submission List to provide a method by which Capacity Credit Allocation Submissions are automatically generated. Head of power for this Procedure is in clause 4.30.12
CCA Process Overview Capacity Credit Allocations are on a Trading Day Day basis. CCAs can be created by: A Market Participant providing a CCA Standing Submission List for a Capacity Year; and A Market Participant submitting CCA Submissions as standalone submissions. CCA Submissions must be made prior to 5pm on the Scheduling Day for the respective Trading Day. The receiver of the Capacity Credits is no longer required to submit a CCA Acceptance. Trading MP submits CCA Submission by CCA Standing Submission List or standalone CCA Submission) AEMO rejects CCA Submission SUBMITTED SUBMITTED REJECTED REJECTED AEMO approves CCA Submission MP withdraws CCA WITHDRAWN WITHDRAWN APPROVED APPROVED AEMO amends CCA
CCA Standing Submission List A CCA Standing Submission List provided by a Market Participant: Applies to a Capacity Year. Will be provided to AEMO through the WEMS. Must contain an ordered list of Template CCA Submissions. Must set out the information required of a CCA Submission as specified in clause 4.31.1 and 4.31.2 of the WEM Rules. AEMO will: Use the CCA Standing Submission List to convert each Template CCA Submission into a CCA Submission within 1 Business Day after the CCA Window opens. Convert Template CCA Submissions in the order specified in the CCA Standing Submission List.
CCA Standing Submission List Example Assuming the following information: The CCA Window for a Trading Day will open 20 days prior to the Trading Day. Market Participant, A, has provided AEMO with a CCA Standing Submission List for CY 2023/24 # # Facility Facility Target Participant Target Participant 1 F1 2 F2 CCA CCA 2 3 B B In accordance with the proposed WEM Procedure, AEMO will use the CCA Standing Submission List to generate CCA Submissions for Market Participant A, each day: On 11 September 2023, AEMO will generate the following CCA Submissions: 2 Capacity Credits allocated from Facility F1 to Participant B for Trading Day 1 October 2023 3 Capacity Credits allocated from Facility F2 to Participant B for Trading Day 1 October 2023 On 12 September 2023, AEMO will generate the following CCA Submissions: 2 Capacity Credits allocated from Facility F1 to Participant B for Trading Day 2 October 2023 3 Capacity Credits allocated from Facility F2 to Participant B for Trading Day 2 October 2023 On 10 September 2024 AEMO will generate the following CCA Submissions: 2 Capacity Credits allocated from Facility F1 to Participant B for Trading Day 30 September 2024 3 Capacity Credits allocated from Facility F2 to Participant B for Trading Day 30 September 2024
Consultation Procedure to be published for consultation in January 2022. Three week consultation period. Feedback is specifically sought on the CCA Standing Submission List process Additional comments or questions can be directed to AEMO by email to WA.ETS@aemo.com.au
