Local Price

This was a metric we first used on 2019:

• At that time we began referring to it as a Connection Point Dispatch (CPD) Price, to help avoid confusion with the more internationally used term ‘nodal price’ (which, to different stakeholders, may (or may not) include the effect of losses).  This was used:
  • In various ez2view widgets, but also
  • Starting in the GSD2019 through until the GSD2024.
• But from mid-2025 we have started the process of migrating to the use of the term ‘Local Price’ to adopt the same terminology that is used by the AEMO.

Conceptually, it refers to the price that a (supply-side) DUID must ‘bid under’ in order to be dispatched at the Regional Reference Node (RRN). It reflects both:
(1) the physical price at the RRN and
(2) the Local Price Adjustment, calculated due to the impacts from Bound Mis-Pricing Constraints.

 

More to come here…