System Service and Ahead Markets
On 6 December 2019, COAG Energy Council tasked the ESB with investigating interim measures to preserve reliability and system security in the NEM as it transitions to 2025. The ESB was asked to provide advice on prioritising initiatives currently underway that are aimed at identifying the range of essential system security services required as the NEM transitions, how these services can be valued, and how they can be efficiently procured. This should also include advice on arrangements to give visibility of available resources and options to ensure their sufficiency, including ahead markets and unit commitment runs, to ensure that the right resources are available at the right time and to ensure co-optimisation of necessary resources and services and avoid system operator interventions. This paper outlines future operational challenges in ensuring a secure and reliable system, a potential conceptual framework to value system service and provides a spectrum of options to enhance the coordination and scheduling of resources. These designs will be progressed over the coming months.
Public consultation will be conducted later this year, in the interim we welcome feedback on the paper which can be sent to email@example.com with email subject heading titled ‘Ahead Market Feedback’