The AEMC held a public workshop last week on proposals to manage the costs and risks of integrating new generation into the power system. These proposals have been developed as part of the 2019 Coordination of generation and transmission investment (COGATI) - access and charging review.
The COGATI 2019 public workshop was hosted by Commissioners Charles Popple and Michelle Shepherd. The workshop was open to all stakeholders and focused on a broad range of matters relating to the two COGATI discussion papers that the Commission published on 14 October 2019 on transmission access reform and renewable energy zones.
The topics discussed included:
- the need for a new transmission access approach
- key design features and examples relating to wholesale electricity pricing reform
- key design features and examples relating to financial transmission rights and how these rights would function
- the AEMC’s proposed approach for conducting impact analysis
- how different types of renewable energy zones (REZs) can be developed.
The Commission is seeking stakeholder views on the issues raised during the public workshop and in the discussion papers. Written submissions are due by 8 November 2019. A final report on the proposed COGATI reforms will be published in December 2019.
These rule change requests are being progressed as part of the Commission’s broader system security and reliability action plan.
Media: Prudence Anderson, Communication Director, 0404 821 935 or (02) 8296 7817
The COGATI reform package at a glance
This market redesign would:
- Lower costs for consumers by generators paying some of the costs of new transmission and ensuring the lowest cost combination of generation is dispatched at any given time
- increase the ability for generators to access the grid at more cost-reflective prices, and give them more control and certainty over how and when they use the network.improve locational pricing that reduces likelihood of needing to over-build the transmission network and encourage the right generation to connect to the grid at the right place and the right time.
- help offset the cost to consumers of building extra transmission through the money paid by generators for financial transmission hedges
- Increase reliability through better coordination of generation and transmission investment decisions
- Improve access to the grid for new generation, linked to reforms which are focused on making renewable energy zones happen faster across the whole market.
- Deliver better financial risk management for generators to manage congestion, and marginal loss factors - ultimately reducing their cost of capital.
- Reduce transmission network costs in managing inter-regional settlement residues.