When wind generators offer their plant into the market they are required to offer their generation in a single band. (Most other generators can offer in multiple bands at various different prices). The single band must have:

  • a price of $0.01/MWh (or $0.00/MWh if the wind generator has must run dispatch rights)
  • a quantity based on the wind generator’s forecast of what it expects to be able to generate.

Offers must be in place at least 36 hours ahead. However, within the last 2 hours prior to the beginning of the trading period, wind generators are required to revise their offers using a persistence-based methodology based on the current output of their wind farms. Wind generators receive dispatch instructions, but they are not normally obliged to comply with the dispatch instructions.

The WAG has identified two problems that this project seeks to address:

  • the Code does not clearly prohibit non-notified withdrawal of wind generation
  • there is no clear mechanism for economic withdrawal of wind generation.