Five Minute Settlement and the Nuclear Option

The AEMC has released a Directions Paper on the rule change proposal submitted by Sun Metals to implement 5 minute settlement.

In its paper, the AEMC went far beyond the concept of 5 minute settlement put forward by Sun Metals.  It is proposing changes that will require major revamps to IT systems, contracts and much existing metering over a period of 3-5 years.

IES has made a submission to the AEMC proposing a more measured, less costly, more quickly implemented and more robust approach. Much of the IES proposal is contained in a report IES prepared recently for CS Energy on ways to improve the NEM auction by implementing marginal cost principles more widely.  These documents can be downloaded through the links below.

  1. IES Submission to AEMC on Directions Paper for 5-minute Settlment
  2. IES report to CS Energy on Upgrades to NEM Auction

Links to IES’s original 1999 reports to the then market operator, NEMMCO, on implementing ancillary service markets and fixing the 5-30 minute problem are also included for those interested in the historical background to some of these issues.

  1. Ancillary Services - Stage1 Report
  2. Ancillary Services - Stage1 Appendices
  3. Ancillary Services - Who Pays Report
  4. Ancillary Services - Who Pays Appendices Final

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