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Overview of Prequal applications
Before participating in a Capacity Auction, companies need to Prequalify the generation or DSR resources for which they are seeking Capacity Agreements. The EMR Delivery Body uses the information submitted during Prequalification to verify that generation and DSR Capacity Market Units (CMUs) are eligible to participate in the Auction and to establish the capacity of individual CMUs. The Prequalification process also enables licensed owners of existing licensable generation units to notify their intention to Opt-out of a Capacity Auction should they not wish to enter.
Click here to access the Prequal document library which includes the 2018 Prequalification Guidance document.
The following forms of capacity are not eligible to participate in the Capacity Market:
Capacity receiving low carbon support (e.g. through the Renewables Obligation, Contracts for Difference, or small-scale Feed in Tariffs (FIT))
Capacity with long-term contracts to provide Short-Term Operating Reserve (STOR) unless an irrevocable declaration is made to terminate the STOR contracts if awarded a capacity agreement
A separate Application is required for each CMU for each Auction. Applications for Prequalification are made via the EMR Delivery Body Portal. The Applications are assessed by the Delivery Body and the outcome of assessments is released publically on Prequalification Results Day.
An Application can have one of the three possible outcomes reflecting its status at Prequalification Results Day;
The Application is Prequalified to participate in the Auction. Depending on the CMU type, some pre-auction activities may need to be completed to confirm participation in the Auction.
The Application is Prequalified, subject to fulfilling one or more conditions before the Auction. Being conditionally prequalified will require Applicants to either lodge credit cover or submit Relevant Planning Consents, or both. Once the conditions are fulfilled, the application status changes from Conditionally Prequalified to Prequalified.
The Application is rejected and is not eligible to participate in the Auction. Applicants have an option to request the Delivery Body to reconsider their decision through the Disputes process.