Reserve Capacity Mechanism
This project addressed reforms to the manner in which the capacity price and capacity volume are determined for generators and demand side management providers to reduce the surplus generation capacity in the market and its associated cost to industry participants and electricity consumers. This project considered the relationship between the reliability standard and the level of surplus capacity in the South West Interconnected System.
Amendments to the Wholesale Electricity Market Rules to implement transitional reforms to the Reserve Capacity Mechanism and the transfer of System Management functions to the Australian Energy Market Operator were gazetted on 31 May 2016.
A final report outlining the reforms was released for stakeholder information.
A position paper outlining the proposed reforms was released for stakeholder comment. Submissions closed on 29 January 2016.
- Position Paper: Reforms to the Reserve Capacity Mechanism (PDF)
- Submissions received to the Position Paper: Reforms to the Reserve Capacity Mechanism
A paper outlining the final design of the reserve capacity auction and to advance the calibration of the auction demand curve was released on 31 January 2017.
Energy Market Operations and Processes
This project considered reforms to Wholesale Electricity Market operations and processes to accommodate a constrained network access model, including the introduction of facility bidding.
A position paper outlining the proposed reforms was released for stakeholder comment. Submissions closed on 27 April 2016.
- Position Paper: Design Recommendations for Wholesale Energy and Ancillary Services Market Reforms (PDF)
- Submissions received in response to the Position Paper: Design Recommendations for Wholesale Energy and Ancillary Service Market Reforms
After consideration of submissions, a Final Report outlining market design recommendations prepared by the Electricity Market Review was released in July 2016.;
- Final Report: Design Recommendations for Wholesale Energy and Ancillary Service Market Reforms (PDF)
The Brattle Group was appointed by the former Public Utilities Office to undertake a broad review of market power mitigation measures in the energy and ancillary services markets.;
