White Paper:
Australia Market: Five-minute settlement
What’s the impact?
On 28 November 2017, the Australian Energy Market Commission (AEMC) made a final rule to change the settlement period for the electricity spot price from 30 minutes to five minutes, with the changes to be implemented by late 2021.
The goal of the change was to open up the market from what as previously dominated by thermal generation, this way it paves the way for investment in other fast response technologies, such as batteries, new generation gas peaker plants and demand response.
In this paper we take a look at the Australian Energy Market Operator (AEMO)’s first trading update since the change, the impacts of the change and wider market trends across the NEM.