The Australian Energy Market Commission (AEMC) has released the final report of its Congestion Management Review (CMR).
The CMR examined the Rules for the National Electricity Market that govern how network congestion is managed, and considered how those Rules could be improved to assist participants in managing the risks associated with transmission congestion more efficiently.
Frontier (Australia) assisted the AEMC throughout the course of the CMR, principally through the development of a modelling framework and methodology for estimating the welfare losses arising from the influence of network congestion on generators’ bidding incentives in a regional electricity market.
In addition, Frontier advised the AEMC of the merits of Generator Nodal Pricing in the context of the National Electricity Market by way of a qualitative review of the theory and international application of nodal pricing in markets elsewhere.