CMC_05_18 Combining Candidate Units into a Capacity Market Unit 10/05/2018

Background & Proposal This proposal seeks to allow participants to register multiple generating units, on the same site and above the de-minimis threshold, as a single capacity market unit. At present, only units below a de-minimis threshold are allowed to combine capacity market units together for the CRM Auctions. This proposal aims to allow participants combine above de-minimis capacity market units together subject to the Approval of the Regulatory Authorities.

Justification To the benefit of the customer I-SEM, CRM and DS3 were designed to accommodate high levels of renewable energy generation. I-SEM and DS3 encourage participants to provide the flexibility and operational capabilities that would assist in reducing wind curtailment (due to min gen issues) and support the system at the least cost. However, the current drafting of the CMC: Places significant commercial risk on participants that have a number of units on a single site i.e. allocation of shared costs to each unit’s auction offer. Reduces the efficiency of entry and exit signals from the CRM Auction. Increases the possibility of perverse auction results to the disadvantage of the consumer. This proposal should encouraged participants to continue to offer the flexibility the system requires by removing the significant CRM commercial risk.