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24 Oct 2018

Insider 33: The Failed NEM and How to Fix It

In this opiniated piece, IES CEO, Hugh Bannister, gives his perspective on how the National Electricity Market (NEM) got to be in such poor shape.

Insider 33: The Failed NEM and How to Fix It

In this opiniated piece, IES CEO, Hugh Bannister, gives his perspective on how the National Electricity Market (NEM) got to be in such poor shape.   Heavy handed government intervention is the evidence of that failure, but the article argues that it is persistent and wilful government failure in the administration and regulation of the NEM that has led inexorably to its current sorry state.

While popular debate rightly focusses on the renewable energy as posing a challenges for system security and reliability, the drivers for high retail prices are many and varied, and very little to do with renewables.  At the core, though, is a philosophy that has sought to profit from privatising the industry without putting in place arrangements that would ensure success from the consumer’s perspective.

 Hugh concludes the paper with a 9 Point Plan for recovery.  The details of what a recovery might look like require further discussion and debate.  This challenge will be taken up in future Insiders.

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23 Mar 2018

Insider 32: Understanding the Evolving NEM

This article describes how the IES electricity market forecasting tool, known as PROPHET, is used to model the National Electricity Market (NEM). PROPHET generates long term projections of wholesale electricity prices and dispatched generator outputs.

Insider 32: Understanding the Evolving NEM

This article describes how the IES electricity market forecasting tool, known as PROPHET, is used to model the National Electricity Market (NEM). PROPHET generates long term projections of wholesale electricity prices and dispatched generator outputs. Dispatch modelling can be used to investigate many uncertainties facing the NEM of the future, such as:

  • How will additional coal generator retirements impact wholesale prices?
  • To what extent will energy and pumped water storage participate in the evolving NEM?
  • How will the energy produced from photovoltaic (PV) sources impact the wholesale price in the middle of the day?
  • Will new transmission interconnectors lower wholesale prices?

Understanding the evolving NEM has never been more important for market participants, investors and policy makers.

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09 Mar 2018

Insider 31: Reducing Artificial Price Volatility in the NEM

In engineering, designing to reduce or eliminate discontinuities and resulting shocks is good practice, delivering more robust and reliable operation as well as greater efficiency.

Insider 31: Reducing Artificial Price Volatility in the NEM

In engineering, designing to reduce or eliminate discontinuities and resulting shocks is good practice, delivering more robust and reliable operation as well as greater efficiency.

In this article IES CEO, Hugh Bannister, argues that this ought to be a design goal for NEM market machinery.  He considers two elements of the NEM market machinery that could be improved for smoother operation and lower ancillary service costs.  The changes required are not large, and could be built into the re-design of systems for 5 minute settlement.

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