The Retailer Reliability Obligation (RRO), implemented by the COAG Energy Council, has now commenced.
The RRO is intended to create measures which ensure the reliability and sustainability of the energy grid.
The Retailer Reliability Obligation will ensure retailers are accountable for reliability by requiring energy companies to sign contracts guaranteeing enough energy is available to meet demand. This is intended to give households and businesses confidence that enough generation will be available to meet their electricity needs.
Retailers can choose to contract with any form of generation, for example solar, hydro, gas, coal, and batteries. However, the ‘firmer’ the contracted generation source is, the greater its contribution will be to meeting their obligation.
This will provide an incentive for market participants to invest in the right technologies in regions where it is needed, to support reliability in the National Electricity Market.
More information on the RRO can be found here.