Benchmark Reserve Capacity Price
The Benchmark Reserve Capacity Price (BRCP) is calculated annually and is used as an input for calculating the Reserve Capacity Price and Reserve Capacity Security amounts.
The BRCP aims to establish the marginal cost of providing additional reserve capacity in each Capacity Year. As of 1 July 2021, the Economic Regulation Authority (ERA) is required to determine the BRCP in accordance with the WEM Procedure: Maximum Reserve Capacity Price. The BRCP is calculated by undertaking a technical, bottom-up cost evaluation of the entry of a 160 MW open-cycle gas turbine generation (OCGT) facility in the South West interconnected system for the relevant Capacity Year. Costs associated with developing the OCGT facility include:
- Fixed operating and maintenance (O&M) costs for the power station, fuel handling, and transmission connection components.
- Land costs.
- Liquid fuel storage and handling facilities.
- Transmission connection costs.
- Other ancillary and infrastructure costs that are normally incurred when developing a power station.
- Allowances for legal, insurance, financing, and environmental costs including a contingency margin.
On 21 December 2022, the ERA determined that the BRCP is $193,400/MW/year for the 2022 Reserve Capacity Cycle (which covers the 2025-26 Capacity Year).
Historical Benchmark Reserve Capacity Prices
The table below shows the BRCP and Reserve Capacity Price for each Capacity Year since market start. The Reserve Capacity Price is paid by AEMO for Capacity Credits not traded between Market Participants.
| Capacity Year | BRCP ($ per MW per year) | Reserve Capacity Price ($ per MW per year) |
| 2025-26 | $193,400 | $251,420.00 |
| 2024-25 | $165,700 | $194,783.54 |
| 2023-24 | $151,700 | $105,949.27 |
| 2022-23 | $141,900 | $85,294.19 |
| 2021-22 | $154,200 | $78,573.33 |
| 2020-21 | $153,600 | $114,134.15 |
| 2019–20 | $149,800 | $126,683.47 |
| 2018–19 | $159,800 | $138,760.39 |
| 2017–18 | $164,800 | $111,752.53 |
| 2016–17 | $176,800 | $121,888.94 |
| 2015–16 | $157,000 | $120,199.31 |
| 2014–15 | $163,900 | $122,427.87 |
| 2013–14 | $240,600 | $178,476.69 |
| 2012–13 | $238,500 | $186,001.04 |
| 2011–12 | $164,100 | $131,804.58 |
| 2010–11 | $173,400 | $144,235.38 |
| 2009–10 | $142,200 | $108,458.57 |
| 2008–09 | $122,500 | $97,834.89 |
| 2007–08 | $150,000 | $127,500.00 |
| 2006–07 | $150,000 | $127,500.00 |
| 2005–06 | $150,000 | $127,500.00 |
A summary of the breakdown of the cost components of the BRCP and Reserve Capacity Prices since market start is provided below.
Previous Benchmark Reserve Capacity Prices (before 2021)
BRCP determinations made before 2021 can be found here.
Five-yearly methodology review
The Economic Regulation Authority is required to review the Market Procedure: Maximum Reserve Capacity Price at least once every five years (clause 4.16.9 of the Market Rules). This review was last completed in 2013 by the Maximum Reserve Capacity Price Working Group. As a result of the last review, the IMO developed a Procedure Change Proposal to amend the Market Procedure. The amended Market Procedure commenced in October 2013. The Procedure Change Proposal and related documents can be found HERE