Introduction
The National Electricity Law and the National Electricity Rules
have undergone a suite of changes to introduce the Retailer
Reliability Obligation (RRO). This is in response
to the influx of intermittent renewables, potentially affecting the
reliability of supply, in the National Electricity Market
(NEM).
The changes bring into existence the reliability limb of the
infamous National Energy Guarantee or "NEG". The
emissions reduction limb of the NEG was shelved by the Coalition
Government.
Under the RRO, where reliability deficits are identified by the
Australian Energy Market Operator (AEMO),
additional responsibility and liability may be imposed on
electricity retailers and other major energy users to implement
'firming' to cover their share of expected peak electricity
demand. A focus on firming creates incentives to invest in the
right technologies in the right regions.
