The Australian Energy Market Commission (AEMC) has called for submissions on how to change regulatory frameworks to help deliver long-term electricity reliability at least cost to consumers.
Australia’s power system is in transition to a new mix of generation sources as more wind, power and demand response is coming into the market while old generators are closing at the end of their economic lives.
The Energy Security Board has proposed the National Energy Guarantee to produce a clear investment signal so the cleanest, cheapest and most reliable generation can get built in the right place at the right time.
AEMC chief executive Anne Pearson said the guarantee was a window of opportunity to bring climate and energy policy together for the first time.
“The market bodies are already working together to change the way we manage the power system as change is happening all around us now,” Mrs Pearson.
“The directions paper we are releasing today considers complementary changes to market design to support the guarantee’s objective. It provides an update on key streams in our reliability work program.
“We are seeking stakeholder feedback on improving the transparency of demand forecasting and Finkel recommendations relating to assessing the need for: demand response; providing day-ahead information; and designing a strategic reserve.
“Our reliability frameworks review is an important part of our market transition plan which is looking at ways to increase confidence in the power system’s capacity and capability at all levels – at lowest cost,” Mrs Pearson said.
Stakeholder submissions on the discussion paper are due by May 18, with a final report due mid-2018.