Benchmark Reserve Capacity Price
The Benchmark Reserve Capacity Price (BRCP) is an annual determination conducted by the Economic Regulation Authority (ERA). It serves as an input for calculating the Reserve Capacity Prices and Reserve Capacity Security amounts, providing pricing signals to market participants for the 2025 Reserve Capacity Cycle.
On 19 December 2024, the ERA determined both the Peak BRCP and Flexible BRCP will be set at $360,700 per MW per year for the 2025 Reserve Capacity Cycle, covering the 2027-28 Capacity Year. This determination is available on the ERA website.
The determination is based on the estimated cost of constructing and connecting a 200 MW / 800 MWh Battery Energy Storage System to the South West Interconnected System (SWIS) and its fixed operational and maintenance costs over a 15-year life.
The 2025 BRCP is 56.8% higher than the 2024 BRCP ($230,000 per MW per year), largely attributed to the change in the reference technology from the 160 MW Open Cycle Gas Turbine to the 200 MW / 800MWh lithium-ion battery energy storage system.
For further information on the Coordinator of Energy’s determination of the new reference technology, refer to the Coordinator of Energy Determination: Benchmark Capacity Providers, which was published on 18 December 2023.
Historical Benchmark Reserve Capacity Prices
The table below shows the BRCP and Reserve Capacity Price for each Capacity Year since market start. The Reserve Capacity Price is paid by AEMO for Capacity Credits not traded between Market Participants.
| Capacity Year | BRCP ($ per MW per year) | Reserve Capacity Price ($ per MW per year) |
| 2027-28 |
$360,700 |
MR 4.1.16A – TBA 30 September 2025 |
| 2026 -27 | $230,000 | $216,091.78 |
| 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 from market start until the 2023 Cycle 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