Project Energy Connect Market Integration Papers

Timeline

AEMO has undertaken the following stakeholder consultation on Project Energy Connect Market Integration.

November 2022 - AEMO published the initial Project Energy Connect Market Integration Paper, that introduced to stakeholders the market integration issues that arise from the transmission loop between VIC, SA and NSW. The Paper also considered the market and settlement impacts of PEC that give rise to transmission loop flows and negative interregional settlement residues (IRSR). This consultation received 11 written submissions from stakeholders; the submissions requested more information on the occurrence of negative IRSR and the development of options for reallocation.

May 2023 - AEMO published the PEC Implementation Update on Market Integration (Update Paper) detailing AEMO’s proposed approaches to integrating PEC into dispatch and market settlement residue activities. The Update Paper discussed the need for AEMO to consider the appropriateness of the way loop flow negative settlement residue is managed and allocated. AEMO also published GHD’s Technical Report on power system studies to assess the impact of the integration PEC in stage 1 under various dispatch scenarios.

November 2023 - AEMO released a Directions Paper which proposed approaches for addressing negative settlement residues in relation to dispatch and settlement processes. Proposals were supported by the incorporation of ACIL Allen’s modelling of the settlement effects of PEC, which quantified some of the issues described in the paper. AEMO received 11 submissions.

February 2024 – AEMO published a Final Report including responses to submission received. The Final Report set out the recommended approach to negative residue management and allocation, as well as analysis and comparison of approaches to dispatch integration.