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POWER SYSTEM OPERATING PROCEDURE LOAD FORECASTING PREPARED BY: PROCEDURE TYPE: DOCUMENT REFERENCE: FINAL APPROVER: Systems Capability System Operating Procedure SO_OP_3710 Christian Schaefer DOC. VERSION: 20 DATE: 24 October 2017 This document is current to version 88 of the National Electricity Rules

History Version Date Author Checker Endorser Approver Comments 20 24/10/2017 P Pantic J Fox M Davidson C Schaefer Changes made to reflect incorporation of ASEFS2 into market systems processes. Added sentence to section 5.3 to clarify use of bias during RERT periods 19 26/05/2014 A Yohannan T Vanderwalt 18 29/11/2013 A Yohannan T Vanderwalt C Brownlee M Stedwell Changes made to reflect incorporation of ASEFS into market systems processes. B Webb M Stedwell Added Sections 5.1, 5.2 and 5.3 to provide clarity on DFS process 17 03/01/2013 J Zhai R Palmer C Brownlee M Lyons Section 11 moved to the Short Term Reserve Procedure. Updated document to new template. 16 02/12/2011 P Uribe R Rigoni H Gorniak Sections 5 (deleted), 6, 11.1 (deleted), and 12 modified due to DFS Project 15 05/08/2011 P Biddle R Rigoni H Gorniak Major review 14 28/06/2010 P Biddle S Trollope P Ryan Update section 5.1 13 29/07/2009 P Uribe S Mathur C Brownlee Added definitions Updated Section 3 Added Appendix 3.3 Next Review Next Review Date 08/10/2018 Periodic Review Type Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 2 of 12

Important Notice This document has been prepared by AEMO as required by clause 4.10.1 of the National Electricity Rules (Rules), and has effect only for the purposes set out in the Rules. The Rules and the National Electricity Law (Law) prevail over this document to the extent of any inconsistency. No Reliance or warranty This document might also contain information which is provided for explanatory purposes. That information does not constitute legal or business advice, and should not be relied on as a substitute for obtaining detailed advice about the Law, the Rules, or any other applicable laws, procedures or policies. While AEMO has made every effort to ensure the quality of the information in this document, neither AEMO, nor any of its employees, agents and consultants make any representation or warranty as to the accuracy, reliability, completeness, currency or suitability for particular purposes of that information. Limitation of liability To the maximum extent permitted by law, AEMO and its advisers, consultants and other contributors to this document (or their respective associated companies, businesses, partners, directors, officers or employees) are not liable (whether by reason of negligence or otherwise) for any errors, omissions, defects or misrepresentations in this document, or for any loss or damage suffered by persons who use or rely on the information in it. 2016 Australian Energy Market Operator Limited. The material in this publication may be used in accordance with the copyright permissions on AEMO s website Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 3 of 12

Contents 1 Introduction... 5 2 Purpose... 5 3 Application... 5 4 Related Policies and Procedures... 6 5 General Principles... 6 5.1 Demand Forecasting System... 6 5.2 Demand Forecasting System (DFS) Inputs... 6 5.3 Biasing of demand forecasts... 6 5.4 Load Forecast Revision Timetable... 7 6 Weather Forecasts... 7 7 Load Forecasting in the Pre-dispatch Period... 7 7.1 Pre-dispatch - Current Day Load Forecasting... 7 8 Non-scheduled wind and solar generation forecasts... 8 9 Calculation of 10% and 90% Probability of Exceedence forecasts... 8 Appendix A Pre-dispatch and Short Term Load Forecasting Methodology... 9 Appendix B Australian Wind Energy Forecasting System (AWEFS) and Australian Solar Energy Forecasting System (ASEFS)... 10 Appendix C Australian Solar Energy Forecasting System Phase 2 (ASEFS2)... 12 Figures Figure 1 Statistical models forecasting flowchart... 9 Tables Table 1 Glossary... 5 Table 2 Related Policies and Procedures... 6 Table 3 Load forecast timetable... 7 Table 4 Weather reference location... 7 Table 5 Pre-dispatch load forecasting error thresholds... 8 Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 4 of 12

Glossary a) In this document, a word or phrase in this style has the same meaning as given to that term in the NER. b) In this document, capitalised words or phrases or acronyms have the meaning set out opposite those words, phrases, or acronyms in the table below. c) Unless the context otherwise requires, this document will be interpreted in accordance with Schedule 2 of the National Electricity Law. Table 1 Glossary Term Meaning AWEFS Australian Wind Energy Forecast System ASEFS Australian Solar Energy Forecasting System ASEFS2 Australian Solar Energy Forecasting System (Phase 2) DFS Demand Forecasting System NER National Electricity Rules NEM National Electricity Market POE Probability of Exceedance PV Photovoltaic SCADA Supervisory Control And Data Aquisition STPASA Short Term Projected Assessment of System Adequacy 1 Introduction AEMO must produce indicative load forecasts for each region for the following timeframes Each day for the day ahead Pre-dispatch forecast Each day for the period two to seven days ahead Short term forecast These forecasts are produced in accordance with the Spot Market Operations Timetable. If there is any inconsistency between this Procedure and the NER, the NER will prevail to the extent of that inconsistency. 2 Purpose To provide information about the pre-dispatch and short term load forecasts produced by AEMO. 3 Application This Procedure applies to AEMO. Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 5 of 12

4 Related Policies and Procedures Table 2 Related Policies and Procedures Policies and Procedure Spot Market Operations Timetable Regional Demand Definition Title 5 General Principles Pre-dispatch and short term load forecasts are produced on the basis of calendar days. Eight calendar days are required to fully cover the seven trading days of the short term forecast period. The New South Wales, Victoria and South Australia regions are forecast as a single area. The Queensland region forecast is an aggregate of forecasts for the Northern, Central and Southern areas. The Tasmania region forecast is an aggregate of the Northern and Southern areas and the four major industrial loads. AEMO produces 10%, 50% and 90% probability of exceedence (POE) forecasts for all timeframes. The 50% POE forecast is used to set generation targets in pre-dispatch. The 50% and 10% POE forecasts are used in the STPASA process to calculate reserve levels. 5.1 Demand Forecasting System The Demand Forecasting System or DFS generates the 10%, 50% and 90% POE demand forecasts to be used in pre-dispatch and STPASA processes. DFS generates the demand forecasts automatically every half-hour and, under normal circumstances, does not require manual intervention. 5.2 Demand Forecasting System (DFS) Inputs There are a number of inputs that are used by the forecast models for generating the half-hourly demand forecasts. The key inputs are listed below: 1. Historical actual metered loads (Actual Load data from January, 2010) 2. Real-time actual metered loads (SCADA data from immediately preceding intervals) 3. Historical and Forecast Weather data (Temperature and Humidity) 4. Non-scheduled wind generation forecasts (from AWEFS) 5. Non-scheduled solar generation forecasts (from ASEFS) 6. Small-scale (rooftop) solar generation forecasts (from ASEFS2) 7. Type of day (Weekday/Weekend), School Holidays, Public holidays and Daylight savings information. 8. Mandatory Restrictions (MR)/RERT schedules. 5.3 Biasing of demand forecasts AEMO conducts daily reasonability checks of the demand forecasts in every region. If the demand forecasts generated by the DFS are not consistent with the temperature forecasts, AEMO will manually override the forecasts for the period it is seen to be inconsistent. AEMO will also enter a manual override of the demand forecast during periods of RERT activation. Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 6 of 12

5.4 Load Forecast Revision Timetable As a minimum, each forecast will be produced in accordance with the Spot Market Operations Timetable. AEMO may also update forecasts at other times if it becomes aware of significant changes. Table 3 provides a summary of revision timeframes. Table 3 Load forecast timetable Load Forecast Revision Time (EST) Pre-dispatch (Current Day) Continuous As required 1 Pre-dispatch (Next Day) After 1230 hrs Each Day As each weather forecast is updated. Short Term Each Day Prior to 1230 hrs 6 Weather Forecasts For the purposes of load forecasting, a major regional load centre will be used as the weather reference for that area or region. Table 4, below, lists the weather reference locations that are used for each area or region. Table 4 Weather reference location Area / Region Queensland-North Queensland-Central Queensland-South New South Wales Victoria South Australia Tasmania North Tasmania South Weather Reference Townsville Rockhampton Archerfield Sydney, Bankstown, Penrith and Canberra Melbourne Airport Adelaide, Adelaide Airport Launceston Hobart 7 Load Forecasting in the Pre-dispatch Period The pre-dispatch period starts at the next trading interval and continues to include the next trading day with a half hour resolution. At the time of initial publication the pre-dispatch covers the remainder of the day, the next day and the first 4 hours of the following day. The methodology adopted for pre-dispatch load forecasting is detailed in Appendix A. 7.1 Pre-dispatch - Current Day Load Forecasting Each regional load forecast for the current day is monitored and modified according to changing regional load, system or weather conditions. 1 Refer to section 7 Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 7 of 12

Forecast error thresholds have been determined for each region and are presented in Table 5. The error thresholds are based on the historical peak demand for the region and previous load forecasting performance. The forecast error thresholds are reviewed on a regular basis. Table 5 Pre-dispatch load forecasting error thresholds Region Forecast Error Threshold (MW) Queensland 100 New South Wales 150 Victoria 100 South Australia 50 Tasmania 50 The load forecast for a region will be updated, via the Forecast Monitor, whenever the forecast error is greater than the forecast error threshold in a region for two consecutive trading intervals. 8 Non-scheduled wind and solar generation forecasts AEMO uses the output from the AWEFS, ASEFS and ASEFS2 to adjust the pre-dispatch and short term forecasts to account for the generation of any non-scheduled wind and solar farms as well as generation of any small-scale (rooftop) PV systems. Appendix B provides details of AWEFS and ASEFS. Appendix C provides details of ASEFS2. 9 Calculation of 10% and 90% Probability of Exceedence forecasts The 10% and 90% POE forecasts are derived from the 50% POE forecast. The 10% and 90% POE forecast are produced by multiplying the 50% POE forecast by a scaling factor. A different scaling factor may be specified for each half-hour of the short term period. The 10% and 90% scaling factors are based on statistical analysis of historical load and forecast data. Doc Ref: SO_OP_3710 - V20 24 October 2017 Page 8 of 12

Appendix A Pre-dispatch and Short Term Load Forecasting Methodology The AEMO DFS uses statistical models to automatically generate Pre-dispatch and short-term forecasts every half-hour for all NEM regions including sub-regions that can have a significant impact on constraints. The major factors considered in the statistical models are; Temperature profile Weather season Week day / weekend Unusual conditions (school / public holidays / daylight savings) Figure 1 provides an overview of the process. Figure 1 Statistical models forecasting flowchart Doc Ref: SO_OP3710 v1 24 October 2017 Page 9 of 12

Appendix B Australian Wind Energy Forecasting System (AWEFS) and Australian Solar Energy Forecasting System (ASEFS) The AWEFS and ASEFS provides wind and solar generation forecasts for all NEM wind and solar farms (with registered capacity >=30MW) for the following time frames: Dispatch - 5 minutes ahead 5 Minute pre-dispatch - 5 minute resolution, one hour ahead Pre-dispatch - 30 minute resolution, up to 40 hours ahead Short term 30 minute resolution, 7 days ahead Medium term daily resolution, 2 years ahead Separate wind and solar generation forecasts are produced for 2 Each individual farm (available to the Registered Participant, and relevant Transmission Network Service Provider) Each region (available to all Registered Participants) Entire NEM (available to all Registered Participants) The following inputs are required by the AWEFS Real time SCADA measurements of MW output, wind speed, wind direction, turbines in service, control system set-point (where available). It is the responsibility of the wind farm operator to ensure the accuracy and availability of this information. Numerical weather predictions Standing data provided by wind farms in accordance with the Energy Conversion Model. This is provided as part of the registration process. Availability information provided by the wind farm operator, that includes the number of turbines available and the upper MW limit on the wind farm. It is the responsibility of the wind farm operator to ensure the accuracy and availability of this information. The following inputs are required by the ASEFS Real time SCADA measurements of MW output, Global Horizontal and Inclined Irradiation, wind speed, wind direction, no. of inverters available, barometric pressure, control system set-point (where available), module surface temperature and relative humidity. It is the responsibility of the solar farm operator to ensure the accuracy and availability of this information. Numerical weather predictions Standing data provided by solar farms in accordance with the Energy Conversion Model. This is provided as part of the registration process. Availability information provided by the solar farm operator, that includes the number of strings available and the upper MW limit on the solar farm. It is the responsibility of the solar farm operator to ensure the accuracy and availability of this information. AEMO uses the AWEFS and ASEFS forecasts in the following ways: Dispatch forecast 2 Contact the AEMO Information Centre for access details Doc Ref: SO_OP3710 v1 24 October 2017 Page 10 of 12

Used in the dispatch process to determine target MW for semi-scheduled wind and solar farms. Pre-dispatch forecast Used to determine pre-dispatch targets for semi-scheduled wind and solar farms. Used to adjust the pre-dispatch forecast by subtracting the output of non-scheduled wind and solar farms. Short term forecast Used to adjust the short term forecast by subtracting the output of non-scheduled wind and solar farms. Doc Ref: SO_OP3710 v1 24 October 2017 Page 11 of 12

Appendix C Australian Solar Energy Forecasting System Phase 2 (ASEFS2) The AWEFS2 provides solar generation forecasts for small-scale distributed PV systems, defined as less than 100 kilowatt (kw) system capacity for the following time frames: Pre-dispatch - 30 minute resolution, up to 40 hours ahead Short term 30 minute resolution, 7 days ahead Rooftop PV generation forecasts are produced for 3 Each region (available to all Registered Participants and the general public) The following inputs are required by the ASEFS2: Numerical weather prediction data from multiple weather data providers Output measurements from selected household rooftop PV systems from PvOutput.org Static Data from selected systems from PvOutput.org, such as inverter size and model Aggregate kw capacity by installed postcode for small-scale solar systems as recorded by the Clean Energy Regulator AEMO uses the ASEFS2 forecasts in the following ways: Pre-dispatch forecast Used to adjust the pre-dispatch forecast by subtracting the output of rooftop solar PV systems. Short term forecast Used to adjust the short term forecast by subtracting the output of rooftop solar PV systems. 3 Contact the AEMO Information Centre for access details Doc Ref: SO_OP3710 v1 24 October 2017 Page 12 of 12