The AEMC-established technical working group on grid access reform has held its sixth meeting to help inform the preparation of draft rules to be delivered to Australia’s energy ministers by the end of the year.  

The technical working group is a key part of the grid access reform work the AEMC is leading as part of the Energy Security Board’s post 2025 market design process. This work is fundamental to better integrating new technologies into the national grid in a way that is cheaper, faster and fairer across the board. 

During the course of the year, we are working with stakeholders to inform our thinking as we refine the model for access reform. This work has emerged from the AEMC’s Coordination of Generation and Transmission Investment (COGATI) review.

Two key aspects of the model are locational marginal prices (LMP), which better incentivise generators to factor transmission congestion into where they locate, and financial transmission rights (FTRs), which will give generators a risk management tool to protect themselves against congestion and losses. 

The subject of the latest technical working group was the design of auctions to allocate financial transmission rights (FTRs). At the meeting the group discussed:

• the use of FTR auction revenues to back FTRs, and the firmness of the products offered as a result
• the approach to be used in determining how many FTRs can be acquired
• whether the simultaneous feasibility test is the right test to apply and whether there are alternatives to determining the type and quantity of FTRs to be released
• the options for managing the funds to back FTRs

Discussion notes from the latest technical working group meeting are now available. 

The technical working group includes representatives from consumer groups, energy investors, large consumers, generators, transmission businesses, retailers, the Energy Security Board and market bodies. The group has also now expanded to include members of the ESB technical working group on the post 2025 market design process. 

Anyone who would like to meet with us to discuss the technical working group and the issues and questions raised can contact Russell Pendlebury. 

Media: Kellie Bisset, Media and Content Manager, 0438 490 041 or (02) 8296 7813