It’s important to understand that the Bidding and Dispatch Process is fundamentally about balancing supply with demand in the NEM in real time.
(A) About electricity demand
For this reason, it is useful to start with this Explainer about how electricity Demand is actually measured in the NEM, and what it means.
(B) NEMDE – the ‘NEM Dispatch Engine’
The algorithm used to run the operations of the market is known as NEMDE, the NEM dispatch engine. The logic that it follows is outlined in progressively more detailed explanations below.
(C) About how dispatch works, and how prices are set in the NEM
Over time on WattClarity we have accumulated a number of different articles that help to explain how dispatch works, and how prices are set in the NEM:
B1) We would suggest you start with this Beginner’s Guide.
B2) This was followed later with this (preliminary) Intermediate Guide.
B3) Then there is this follow-on article about Price Setting Concepts by prolific guest author, Allan O’Neil.
B4) Finally, there are a growing list of Case Studies tagged in here that use specific events in the NEM to highlight and explore different parameters.
(D) About the rebidding process (and AER requirements)
Also worth noting that this Glossary section includes this page about the Rebidding Process, and AER Rebidding Guidelines – including what it means to be (in our view) “Not Well Formed”.
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Will add more here, as time permits.
Also note that we have been involved in delivering training to clients in this area – for instance, to a growing number of new-entrant generators coming onboard to use our ez2view (higher-end dashboard) software.