Market Review: Open
This review is looking at ways to deliver a reliable power system – one that has enough electricity available when consumers need it – at the lowest cost. It includes consideration of several recommendations from the Finkel Panel’s Independent Review into the Future Security of the National Electricity Market that relate to reliability.
On 17 April 2018 the AEMC published a directions paper which provides an update on the Commission's analysis and findings to date to facilitate stakeholder consultation and feedback.
The directions paper sets out the following key streams of work for this Reliability frameworks review, highlights issues raised by stakeholders, and discusses the Commission's initial views in the following areas:
- forecasting and information provision
- three Finkel Panel recommendations:
- development of ways to facilitate demand response in the wholesale market
- the suitability of day-ahead markets
- the need for a strategic reserve.
Stakeholder submissions were due by 18 May 2018 and can be found below.
The AEMC intends to publish a final report mid year, in line with the COAG Energy Council’s timeframes for its implementation plan for the Independent Review into the Future Security of the National Electricity Market.
Reference Group, Technical Working Group and other collaboration
The Commission has set up a Reference Group to provide high-level input into the review and a Technical Working Group to provide technical advice.
The Commission notes that AEMO is currently working on a number of pieces of work that relate to this review. These will further inform the assessment of the issues, as well as potential solutions, and we will work closely with AEMO on this.
The Commission is also working closely with the Energy Security Board on the national energy guarantee.
Over the past couple of years, a series of events, such as the load shedding in South Australia and NSW in February 2017, as well as numerous policy debates and announcements (for example, the Energy Security Board’s national energy guarantee) have led to a greater focus on reliability in the national electricity market (NEM).
At the same time, Australia’s energy system is undergoing a transformation - driven by changing consumer choices and rapidly evolving technology, both on the demand and the supply side.
The AEMC considers that it is timely to assess whether the current market and regulatory reliability frameworks are appropriate and has self-initiated this review under Section 45 of the National Electricity Law.
The Commission published its terms of reference on 11 July 2017, published an issues paper on 22 August 2017 and an interim report on 19 December 2017. We received 18 submissions to the issues paper and 31 submissions to the interim report which can be found below.