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.
- IES Submission to AEMC on Directions Paper for 5-minute Settlment
- 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.