Program Information and Fact Sheets
Five-Minute Settlement (5MS) Program
AEMO has established the 5MS Program in order to coordinate the implementation of changes as a result of the Five-Minute Settlement rule change, and the proposed Global Settlement rule change (if the AEMC make such a determination).
Five-Minute Settlement rule
On 28 November 2017, the AEMC made a final determination and rule to alter the settlement period for the wholesale electricity spot market from 30 minutes to five minutes, to align with the dispatch period. The commencement of the change is from 1 July 2021.
The AEMC determined that five-minute settlement would provide a better price signal for investment in fast response technologies, such as batteries, new gas peaking generation, and demand response. The alignment of the operational dispatch and financial settlement periods are expected to lead to more efficient bidding, operational decisions, and investment.
Information regarding the rule change, including the final determination and rule, is published on the AEMC website at: https://www.aemc.gov.au/rule-changes/five-minute-settlement
As part of consultation on the rule change, AEMO prepared a high-level design. This design outlines AEMO’s preliminary views on the procedure and systems impact of 5MS.
Global Settlement proposed rule
On 16 March 2018, AEMO submitted a rule change to the AEMC proposing that the existing settlement-by-difference methodology which is used in the NEM be replaced with a global settlement methodology. AEMO has identified a range of benefits for this change to be made in parallel with 5MS. The change is expected to involve changes to a number of procedures and systems already impacted by 5MS, and AEMO provided a high-level design outlining the potential impact as part of the rule change request.
Consultation on the rule change is expected to commence in June 2018, and details can be found on the AEMC website at: https://www.aemc.gov.au/rule-changes/global-settlement-and-market-reconciliation
AEMO intends to hold information sessions regularly throughout the program to help inform the broader industry on the changes and the activities that are being undertaken. Slides and notes from the sessions will be published below.
- Information Session - 24 May 2018 (136 KB, docx)
- Slide pack - 24 May 2018 (467 KB, pptx)
- Session notes - 24 May 2018 (202 KB, docx)
AEMO will be preparing fact sheets on various aspects of the program, which will be published below as available.
No fact sheets are currently available.
For further information
Please direct any queries regarding Five-Minute Settlement (5MS) to firstname.lastname@example.org.