To what extent does the Capacity Investment Scheme cover curtailment risk, and how to interpret its ‘force majeure’ terms?
An open question to our readers.
General Reform Initiatives
A catalog of some more general reform initiatives … which perhaps have not gone so far as to be (or are too broad to be) encapsulated in Rule Change initiatives.
Battery bidding is reshaping FCAS — But Demand Response remains a strategic asset
Paul Moore of Viotas look at recent supply-demand dynamics within the contingency FCAS markets and whether demand response can play a role.
The commencement of Frequency Performance Payments (FPP)
Yesterday (Sunday 8th June 2025) saw the commencement of the new Frequency Performance Payments (a.k.a. FPP) method.
AEMC underway with review of the Centralised Negawatt Dispatch Mechanism (a.k.a. the WDRM), and consultation closed
Submissions at the AEMC already closed over a week ago, with respect to their review of WDRM. Here's some starting thoughts ...
Games that self-forecasters can* play (Part 1 – An Overview)
I've promised to write this article for some time, but a few recent events (and looming start of FPP) have caused me to publish this now.
Two diagrams to help illustrate the changes coming with FPP (Frequency Performance Payments)
We've facilitated a number of articles on WattClarity relating to the looming FPP changes (now 10 weeks away). Here's two images I've drawn up to (hopefully) illustrate my understanding of what these changes represent.
AER wrote letters to Semi-Scheduled participants (and others) with respect to ‘Expectations surrounding the use of self-forecasting’
At the end of February 2025, the AER wrote to Semi-Scheduled generators, and other interested parties, warning of the AER’s concerns about self-forecasting practices.
Incentivising primary frequency response
The implementation of the Primary frequency response incentive arrangements rule is driving change in how system frequency is controlled and paid-for. The changes stem from how the NEM will incentivise primary frequency response. 6...
Hot chips, algorithms and electricity markets
Declan Kelly thinks through and discusses competition issues that could arise from the increasing proliferation of auto-bidding software by big batteries in the NEM - and suggests some pre-emptive steps that that could be...
AER published ‘Semi-Scheduled Generator Compliance Bulletin’ on Tuesday 4th February 2025
Two weeks after the AER published its updated Compliance Bulletin (and Compliance Checklist) for Semi-Scheduled units, we've finally found time to note about it.
AEMC Final Determination in ‘Integrating price-responsive resources into the NEM’
Another for your Xmas Reading List? This one from the AEMC, in publishing its Final Determination last Thursday 19th December 2024 for the ‘Integrating price-responsive resources into the NEM’.
Locations of last week’s CIS winners vs known areas of congestion
After a suggestion from a reader, Dan plots the locations of the 19 winning CIS projects announced last week against economic and network curtailment data.
Standalone solar and wind dominate list of 19 successful projects from latest CIS tender
Nineteen projects were announced as winners in the government's CIS announcement yesterday - including seven standalone solar farms and six standalone wind farms.
AER sends clear message on self-forecasting behaviours
Semi-scheduled generators shouldn't treat self-forecasts as commercial parameters. The regulator holds significant concerns with the biasing of self-forecasts for commercial benefit.
Noting the new “Firm Energy Reliability Mechanism” being proposed in South Australia
Worth noting the proposed 'Firm Energy Reliability Mechanism’ from the South Australian Government - with live online information session Monday 25th November 2024.
Data Intensity of operating in the NEM, and implications for algorithmic bidding
Philippe Orhan from Neoen shares this article which is adapted from his presentation about BESS bidding (and dealing with the complexity in the data) in the NEM at the recent All-Energy conference in Melbourne.
BESS market operations: We need to talk about being scheduled
James Tetlow of Overwatch Energy shares this article which is adapted from his presentation about BESS operations in the NEM at the recent All-Energy conference in Melbourne.
With the benefit of hindsight – or who’d be an auto-bidder?
Following on from earlier articles about price volatility on Tue 30th July 2024 (particularly in South Australia), guest author Allan O'Neil takes a closer look at the operation of battery units in South Australia.
Further thoughts (part 2) about the design paper for the implementation of the proposed Capacity Incentive Scheme
Guest author, Ben Skinner, returns with the second instalment on his thoughts about the Design Paper for the Capacity Investment Scheme - with submissions due next Monday 25th March 2024.
Some thoughts (part 1) about the design paper for the implementation of the proposed Capacity Incentive Scheme
This is the first of a two part discussion on the Capacity Investment Scheme (CIS) Implementation Design Paper (The Paper) released on 1 March 2024. This part will cover its broad objectives and implications....