171Replacement capacity

#### 171 Replacement capacity (1) This section sets out the conditions mentioned in paragraph 170(2)(e) that apply for the purposes of ascertaining whether the generation complex passes the power system reliability test in relation to an eligible financial year. (2) The first condition is that neither paragraph 170(2)(a) nor (b) applies. (3) The second condition is that either: (a) both: (i) as at the start of 1 April in the previous eligible financial year, a person (the first person) who owns, controls or operates the generation complex is registered as a generator in respect of the generation complex under a law of the Commonwealth, a State or a Territory relating to the regulation of energy markets; and (ii) during the period beginning at the start of 1 July 2010 and ending immediately before 1 April in the previous eligible financial year, there was a reduction in the nameplate rating in megawatts of the generation complex; or (b) both: (i) at a time before 1 April in the previous eligible financial year, a person (the first person) who owns, controls or operates the generation complex was registered as a generator in respect of the generation complex under a law of the Commonwealth, a State or a Territory relating to the regulation of energy markets; and (ii) during the period beginning at the start of 1 July 2010 and ending immediately before 1 April in the previous eligible financial year, the registration ceased to be in force. (4) The third condition is that, as at the start of 1 April in the previous eligible financial year, the first person is registered, under a law of the Commonwealth, a State or a Territory relating to the regulation of energy markets, as a generator in respect of one or more generation units that: (a) before the start of that 1 April, have been nominated by the first person under section 172 for the purposes of the application of this section to the generation complex; and (b) are not included in the generation complex; and (c) are connected to the same interconnected electricity system as the generation complex; and (d) if the market relating to the interconnected electricity system is divided into regions—are located in the same region as the generation complex; and (e) entered service on or before 1 December in the previous eligible financial year; and (f) were not taken into account under paragraph (5)(b) for the purposes of ascertaining whether the generation complex passed the power system reliability test in relation to an earlier eligible financial year. (5) The fourth condition is that the sum of: (a) the nameplate rating in megawatts of the generation complex that was registered under a law of the Commonwealth, a State or a Territory relating to the regulation of energy markets as at the start of 1 April in the previous eligible financial year; and (b) the nameplate rating or ratings in megawatts of the generation units covered by subsection (4) that was registered under such a law as at the start of 1 April in the previous eligible financial year; and (c) if: (i) the generation complex passed the power system reliability test in relation to an earlier eligible financial year because of paragraph 170(2)(e); and (ii) the generation complex did so in relation to whichever is the most recent of those earlier eligible financial years partly because there were relevant excess megawatts; those relevant excess megawatts; equals or exceeds whichever is the least of the following: (d) whichever of the following is applicable: (i) if, as at the start of 1 July 2010, the nameplate rating in megawatts of the generation complex was registered under such a law—the nameplate rating in megawatts as so registered; (ii) if the nameplate rating in megawatts of the generation complex was first registered under such a law at a time after the start of 1 July 2010 but before 1 April in the previous eligible financial year—the nameplate rating in megawatts so registered; (e) if the generation complex has passed the power system reliability test in relation to one or more earlier eligible financial years because of paragraph 170(2)(c)—the reduced nameplate rating in megawatts of the generation complex that was applicable under subparagraph 170(2)(c)(iii) for the purposes of ascertaining whether the generation complex passed the power system reliability test in relation to whichever is the most recent of those earlier eligible financial years; (f) if the generation complex passed the power system reliability test in relation to one or more earlier eligible financial years because of paragraph 170(2)(e)—the nameplate rating in megawatts that was applicable under paragraph (a) of this subsection for the purposes of ascertaining whether the generation complex passed the power system reliability test in relation to whichever is the most recent of those earlier eligible financial years. The excess (if any) is to be known as the relevant excess megawatts. (6) The fifth condition is that the requirements (if any) set out in the regulations are met. (7) For the purposes of this section, the nameplate rating of a generation unit is: (a) if the appropriate energy market operator in relation to the relevant generation complex is Australian Energy Market Operator Limited (ACN 072 010 327)——the maximum generation capacity in megawatts of the generation complex, most recently published by Australian Energy Market Operator Limited; and (b) if the appropriate energy market operator in relation to the relevant generation complex is the Independent Market Operator established under the Electricity Industry (Independent Market Operator) Regulations 2004 of Western Australia—the maximum generation capacity in megawatts of the generation unit specified in a written determination made by the Regulator for the purposes of this paragraph. (8) In making a determination under paragraph (7)(b), the Regulator may have regard to any information provided to the Regulator by the Independent Market Operator. (9) For the purposes of this section, a generation unit that comprises, or is included in, a generation complex enters service when the unit is first dispatched to deliver electricity by the appropriate energy market operator.