September 2019

13 Sep Can A Capacity Market Secure Supply

On the 12th September COAG Energy Council met and discussed the approach of the Energy Security Board is proposing to resolve the long-term solution to the NEMs security of supply assumed issues in an increasing variable renewable energy grid. One possible future scenario that has been considered and offered for market feedback was implementing a Capacity Market. Incentivising existing generation to not mothball early and give new assets return certainty encouraging investment. In a standard model it would provide payments to build new, extend the life of generation assets or possibly to those able to reduce their demand, providing they guarantee capacity to the system at periods of stress. The idea behind...

Read More