Management of Risks on NEM Congestion

In the NEM, network congestion is almost exclusively managed by constraint equations applied to the dispatch algorithm. This involves the creation of constraint equations to model the transmission network limitations. These constraint equations ensure that dispatch instructions for scheduled and semi-scheduled entities in the NEM (normally generating units) take into account the need to maintain the power system in a secure operating state.

This approach is in contrast to many other electricity markets where manual dispatch of network support services plays a much bigger role in congestion management. This means that the network congestion management processes in the NEM are more complex than other markets but manage congestion in a more precise manner.

AEMO has produced a document outlining the risks on NEM Congestion and the measures AEMO is taking to manage those risks.