Project Summary

In the National Electricity Market (NEM), AEMO, as the market operator, does not balance and optimise new assets added to the grid. It is increasingly evident the NEM does not operate as a “pure” market. Various policy interventions are distorting minimum system cost outcomes. The initial MEGs study of the NEM (Modelling Energy and Grid Services (MEGS) – a continuing case study) was the first to show the trajectory of total system costs (TSC) in response to various technology additions. AEMO‘s Integrated Systems Planning document (ISP) also shows where demand gaps are and indicate potential generation opportunities from renewables. While we recognise the effect of potential technologies to TSC, there is a gap in understanding the impact of various policy and market mechanisms on the essential elements of a competent grid that is being decarbonised.

This study will look at what constitutes a ‘competent grid’ and how does MEGS take that into account. It will explore the market rules and regulations required to achieve the lowest TSC outcome. The project will also study how MEGS can be improved and how enabling infrastructure projects might impact the TSC. A systematic, review of the value of TSC will provide policymakers and investors a more realistic and informative data on which they can make decisions.

Available Reports

Snowy 2.0 and Beyond: the Value of Large-Scale Energy Storage

In the context of targeting ‘net-zero’ emissions by 2050, this report outlines the characteristics of a NEM asset portfolio that has access to very large quantities of pumped hydro energy storage. It demonstrates that to maintain a viable grid system at lowest system cost, even with massive energy storage resources, CCS will be necessary.

What happens when we add big infrastructure to the NEM?

This study examines the effect of four substantial upgrades and how they may impact the asset portfolio for deep decarbonisation of the NEM.  The modelling minimises the total system cost. The approach is similar to a cost benefit analysis, whereby the positive and negative effects of a new technology are all accounted for to determine the overall net cost or benefit to the power system.

Project Name:
The role of electricity systems modelling in optimising planning decisions

Research Organisation:
Gamma Energy Technology Pty Ltd

In Progress

Geoff Bongers, Andy Boston, Stephanie Byrom


Research Program: Techno-Economic Analysis
Demonstration: General (Techno-Economic Analysis)
Research Focus: Energy scenarios modelling, Techno-Economic Assessment

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