AEMO has released its draft report forecasting Marginal LossFactors (MLFs) for the 2020 -21 financial year. This follows an indicative MLF report released in November 2019. The final MLFs for the 2020/21 financial year will be published on 1 April 2020.
MLFs relate to energy lost when flowing through powerlines due to electrical resistance and transmission line heating as transmission lines approach their thermal limits. Higher losses are seen in remote parts of the network and in areas where there is congestion on the transmission network.
Loss factors are calculated and fixed annually for each individual generator to facilitate efficient scheduling and settlement processes in the National Electricity Market (NEM).
The draft report shows that as more generation is connected to electrically weak areas of the network, particularly when they are remote from the major demand centres, the MLFs in these areas will continue to decline.
Changes between the 2019-20 MLFs and the 2020-21 MLFs on an average basis for each region are summarised below:
|New South Wales||
This report comes after the Australian Energy Market Commission (AEMC) handed down a final determination on the 27th of February against the implementation of the proposed ‘average loss factor’ calculation method.
AEMO is committed to providing the market with greater transparency about likely future changes to MLFs driven by new generation seeking to connect to the grid. This includes publishing MLF updates more frequently to assist in identifying changes and trends, as well as working with industry and the AEMC on potential options to reduce the impact of significant year-on-year changes.
“We recognise loss factors are a challenging issue for the industry. More accurate information, higher quality data and expediting progress on necessary transmission upgrades should all support a better solution for both industry and consumers,” AEMO CEO and Managing Director, Audrey Zibelman said.
AEMO is currently working with stakeholders to refine these draft MLFs prior to the release of the final MLFs for FY 2020-21 on 1 April 2020.
Following the release of the final MLFs, AEMO will be commencing a review of the MLF methodology. AEMO welcomes comment and feedback on the draft MLFs and the current process, including transparency improvements. Feedback can be provided to firstname.lastname@example.org.