Our advice on market design spans many sectors of the economy, from fruit markets to stock exchanges to bulk containers.
Market design is in our DNA
Other significant areas of our market design work include the energy, water and climate change sectors.
Our energy market design work has its roots in the initial development of the NEM, and we have been providing advice on its evolution ever since.
We have advised policy-makers, regulators and participants in Australia and Asia on questions such as the form of bidding, the approach to price determination, implications of transmission network constraints, governance arrangements, retail competition, market power, contracting and hedging strategies, portfolio optimisation, and vertical and horizontal integration. Our experience and understanding of the market is supported by our suite of market models, which provide insights about the potential effects of different market arrangements.
We have worked within both ‘energy-only’ electricity markets, as well as markets with a separate mechanism for rewarding capacity. We also have considerable experience in both ‘market carriage’ and ‘contract carriage’ gas trading arrangements.
We developed, modelled and implemented the world’s first mandatory, broad-based, emissions trading scheme. We continue to advise stakeholders on the design, frequency and rules of auctions for emissions abatement permits, as well as the implications of trading mechanisms on energy markets and the economy as a whole. We cover market design aspects in climate change here.
We advise on the market and trading arrangements which support the allocation of this productive and precious resource including: the harm that can come from restricting the operation of the market; the economic impacts of the further development of the market; and the specifics of rules that create incentives for water users to make the most of water given its highly variable availability. We cover market design in the water sector here.