The Australian Energy Market Commission (AEMC) has taken another step towards supporting reliability through the transition to net zero by improving the transparency of energy market reserves in a cost-effective way.   

In a more preferable final rule, the Australian Energy Market Operator (AEMO) must publish further detailed information about energy availability each day to help the market make more informed decisions that impact reliability and prices for consumers.  

The Commission has opted for these improvements instead of two separate rule change requests proposing to introduce an operating reserve market.

Extensive analysis and input by stakeholders informed the AEMC’s position that an operating reserve market would lead to higher costs for consumers while not providing any material performance improvements. 

As the rule maker for the National Energy Market (NEM) the AEMC is strongly focused on making sure the regulatory framework achieves reliable supply as the grid transforms while also delivering affordable electricity prices, especially during current cost of living concerns.

Chair Anna Collyer says the AEMC’s final determination to enhance the current market arrangements is a pragmatic step forward.

“By making a generator’s reserves more visible the market can better assess where they are needed, which incentivises more efficient operational and commercial decision making. 

“For electricity customers, that is likely to mean improved reliability during times of high supply variability and forecast uncertainty, without the burden of higher power bills that would come with an operating reserve market,” she said. 

The final rule does not place onerous reporting obligations on market participants, with most of the information required already provided to AEMO.  

Near real-time data about the state of charge and maximum storage capacity of grid-scale batteries will also be included as they play a greater role in the NEM.  

The decision to not implement an operating reserve market is consistent with the AEMC’s draft determination and directions paper, which received near unanimous support from stakeholders.

For more information, visit the project page.  

Media: Jessica Rich 0459 918 964 or media@aemc.gov.au