The AEMC held a public forum with stakeholders on 29 May to discuss their experience of transmission access reforms internationally.
The public forum was 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. During the course of the year, we are working with stakeholders to inform our thinking as we refine the model for access reform.
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.
While new to Australia, LMPs and FTRs have been in place for some time in overseas markets such as New Zealand, North America and Singapore.
More than 160 stakeholders attended the forum, which looked at this international experience. It provided stakeholders with the opportunity to ask questions and discuss their experience of grid access arrangements in overseas markets and focused on the work undertaken by NERA Economic Consulting for the AEMC, which can be found here.
The forum was designed to supplement the NERA work already done with the practical experience of these approaches from stakeholders who have operated in overseas markets.
Reforming access to the grid is central to making sure Australia takes the cheapest, fastest and fairest path to a low-emissions energy future as the generation mix changes rapidly. The reform proposals emerged from the AEMC’s Coordination of Generation and Transmission Investment (COGATI) review.
The slide deck presented at the forum and a transcript of the presentation and discussion with participants are now available. Anyone who would like to meet with us to discuss the forum and the issues and questions raised can contact Russell Pendlebury.
Media: Kellie Bisset, Media and Content Manager, 0438 490 041 or (02) 8296 7813