Have your say on market reform of the national electricity market
Energy Security Board releases revolutionary redesign for public feedback
Energy Security Board Independent Chair, Dr Kerry Schott AO, today released a consultation paper outlining a comprehensive redesign of Australia’s energy market with seven market development initiatives.
“It is clear that the rules and market frameworks need to evolve to keep up with the accelerating pace of change, which is leading to security and reliability challenges and less than ideal outcomes for consumers."
Dr Schott said that reforms are critical to ensure the NEM is fit for purpose for the future and can accommodate new and different needs of the electricity system, market participants and consumers.
The rapid and continued uptake of grid scale renewables and distributed energy resources has transformed our energy system. Today solar PV is installed on more than 2.2 million households, up from 100,000 10 years ago. In the last decade more than 10GW of grid-scale renewables connect to the NEM, 5GW in the last 3 years.
The Post-2025 Market Design Consultation Paper published today follows a request from the (former) COAG Energy Council to develop market reforms to support the transition of the National Electricity Market (NEM) and drive better consumer outcomes.
Developed in collaboration with the Australian Energy Market Commission, Australian Energy Regulator, Australian Energy Market Operator, these reforms are aimed at systematically modernising the market design and regulatory frameworks to meet the needs of the energy transition and unlock value for consumers from new energy and digital technologies, including from distributed energy resources.
The potential solutions have been set out in the following groups:
- Resource Adequacy Mechanisms
- Aging Thermal Generation Strategy
- Essential System Services
- Ahead Mechanisms
- Two-Sided Markets
- Distributed Energy Resources (DER) Integration
- Transmission Access and the Coordination of Generation and Transmission
One of the biggest value adds of the Post-2025 reform program is that it provides an opportunity to develop a coherent long-term reform path, and consider how different elements work together as a package of reforms, rather than on an individual basis.
Ongoing collaboration across the market bodies is continuing to ensure the reform program remain aligned with broader policy developments, and to reduce duplication where possible. Stakeholders can provide feedback by 19 October 2020. Final recommendations on all reforms will be made to Ministers by mid-2021.