COAG published its Review of Future Security of the NEM – What is in it and what does it mean?

by Vivid User | Jun 19, 2017
Recent events in South Australia, which experienced a system wide black-out last year, and in NSW where some customers were unexpectedly curtailed earlier this year, attest to the need for a wide ranging review of the market as it currently stands. The Finkel review is COAG’s response to these events and comes in the wake of several other reviews into market performance for both the electricity and gas sectors, some of which are ongoing.
  • Increase measures to address risk of black-outs next summer – improve system security
  • Clean Energy Target to increase zero/low emissions generation – will increase costs initially but will lead to lower costs in the long term
  • Increased notice period for plant closures, generators to provide details of existing gas contract to the market operator – less market volatility from unexpected announcements
  • New Energy Security Board to co-ordinate implementation of the report’s findings


On 9th June COAG published its long awaited Independent Review into the Future Security of the National Electricity Market undertaken by a Panel chaired by Australia’s Chief Scientist, Dr Alan Finkel (the Finkel Review). The review was in response to the emerging issues impacting power system security in the National Electricity Market (NEM). Specifically these include the increasing penetration of wind and solar generation, shrinkage of the fossil fuel fired sector, the need to continue reducing emissions from the generation sector if Australia is to meet its international commitments and the fragility that this has introduced in a market designed over twenty years ago when none of these factors were prevalent.


The report itself runs to over 200 pages and makes 50 separate recommendations, many of which are for further reviews. A large proportion of the report is focused on the near term system reliability issues that could emerge as demand increases next summer, but the report also speaks to longer term energy policy through its recommendations for a Clean Energy Target. This briefing summarises those recommendations that are of most relevance to industrial, commercial and government organisations, the report in full can be accessed here.


Adoption of a Clean Energy Target (CET):

The CET proposal has attracted the most attention and will be most difficult politically for the federal government to implement. It recommends a new scheme that would reward generators producing power at a carbon intensity below a threshold level set by the government. The mechanism would be similar to that for the existing Renewable Energy Target, with generators creating certificates based on how clean their generation is and the retailers being required to back a proportion of their load with certificates or pay a penalty for any shortfall. The burning question here is what the threshold level will be?

The coal lobby would prefer a higher threshold so that the younger and cleaner coal fired plants (or any new ones) can participate in the scheme, or alternatively, have no scheme at all. The environmental lobby wants a lower threshold to cut emissions more steeply. The CET will likely run in parallel to the current Renewable Energy Target (RET) scheme. Modelling for how the CET would impact the future electricity price shows that overall the CET would reduce the cost of electricity in the long run, because it will encourage investment in new plant that is currently lacking precisely because there is no energy policy beyond the RET scheme, and it isn’t sufficient to make up for the number of ageing coal plants that are likely to close in the future. It looks as if the CET would increase delivered energy prices marginally in the shorter term, but decrease them marginally in the longer term.


Increased System Reliability:

The report contains a number of recommendations to improve system reliability and to help prevent any recurrence of the South Australia and NSW experiences of the past 12 months, with particular regard to the forthcoming summer. Two recommendations in particular stand out. One, the requirement for new generators including wind and some large scale solar installations to be able to provide fast frequency response services. The second is the requirement for transmission businesses to provide a sufficient level of inertia for each region (which basically means making sure that there is enough plant running to provide the required frequency response). When South Australia suffered its state wide black-out, the available generation in SA was falling away rapidly as weather brought down transmission lines and disconnected generators. There weren't sufficient plants available to pick up the lost generation quickly enough (fast frequency response) and the result was the black-out. Taken together these recommendations should help prevent a similar situation occurring.


More Transparency for Plant Closures and Plant Availability:

Two plant closure announcements (Alinta’s Northern power station in South Australia and Engie’s Hazelwood power station in Victoria) took the market by surprise mainly because they were made less than six months before the final closure date, and caught the market off guard. The report proposes requiring three years notice of closure. That would give the market operator ample time to assess the impact of the closure and take whatever actions are necessary to manage the effect on system security. It would also allow the retailers to more easily plan their contract purchases. However, three years is a long time and we will have to wait and see whether the proposal is implemented as-is or reduced in duration.

A second recommendation is for gas fired generators to provide the market operator with details of their gas purchase contracts. In the past the market operator has requested that gas fired units be brought online at short notice but this has been defeated by gas availability under short time frames. Knowledge of the gas supply arrangements would help in planning for high demand/low generation periods and could prevent customer disconnections. Both of these recommendations are positive in terms of planning for the longer term security of electricity supply.


Establishment of the Energy Security Board:

The report recognises that responsibility for delivering a secure electricity system in the longer term is divided between COAG, the Australian Energy Regulator, the rule change body (AEMC) and the market operator (AEMO). Only co-ordinated action on behalf of each of these bodies will result in better outcomes. To support implementation the report recommends creation of the Energy Security Board. This will have an independent Chair and members will include the CEO of the AEMO and Chairs of the AEMC and AEMO. Creation of this body should promote effective action, which involves more than one of the market bodies.


In summary:

The report makes many sensible recommendations for the prevention of the kind of events that South Australia has experienced over the last twelve months. However, this may not mean that customers will not be curtailed at some point over the next summer with customers in South Australia and Victoria most at risk. If implemented, the recommendations should help to minimise the number of curtailment events, their magnitude and duration.

In addition, the report provides a more meaningful energy policy regarding increased low or zero emissions generators. One of the principal shortcomings of current energy policy is that it has effectively created a moratorium on new coal fired plant and accelerated the closure of existing ageing plants. At the same time it has provided insufficient incentives for new gas or renewables plant to fully replace the closing fossil plants. System security has also been compromised by failure to recognise the technical characteristics of the new, renewable generators. The result has been electricity and environmental certificate prices hitting near record highs as the supply/demand balance has narrowed, insufficient investment in new plants in spite of the price signal, and increased system fragility due to the technical parameters of those new renewable generators that have been commissioned. The Review seeks to address these inconsistencies.


Leave a comment
  1. Alina Anderson | Nov 21, 2017
    It is a nice post. I always read this kind of information. I also want to share some helpful information regarding academic help for everyone. You can take help for homework help, paper help, paper writer, ghost writers, writing services and custom writing.
  2. Roanayla Aries Apocarpous | Nov 20, 2017
    Thanks for sharing this information. I really like your blog post very much. You have really shared a informative and interesting blog post . Roanayla Aries Apocarpous
  3. fence damage responsibility | Nov 20, 2017
    I don’t think many of websites provide this type of information. fence damage responsibility
  4. Guide | Nov 18, 2017
    I curious more interest in some of them hope you will give more information on this topics in your next articles. Guide
  5. search bar firefox 57 quantum | Nov 17, 2017
    Nice post! This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post. search bar firefox 57 quantum
  6. gst full name form | Nov 14, 2017
    I really enjoyed reading this post, big fan. Keep up the good work andplease tell me when can you publish more articles or where can I read more on the subject? gst full name form
  7. wrestling | Nov 12, 2017
    I love the way you write and share your niche! Very interesting and different! Keep it coming! wrestling
  8. order | Nov 11, 2017
    I quite like reading an article that can make people think. Also, thanks for allowing for me to comment! order
  9. voyance serieuse | Nov 11, 2017
    Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have. voyance serieuse
  10. the best tinted Moisturizers | Nov 11, 2017
    It is extremely nice to see the greatest details presented in an easy and understanding manner. the best tinted Moisturizers
  11. warframe free platinum | Nov 10, 2017
    Much thanks for composing such an intriguing article on this point. This has truly made me think and I plan to peruse more warframe free platinum
  12. Konveksi tas seminar | Nov 07, 2017
    Do you have any video of that? I’d care to find out some additional information. <i><a href=""> Konveksi Tas Seminar Workshop</a></i>
  13. gclub | Nov 04, 2017
    Much thanks for composing such an intriguing article on this point. This has truly made me think and I plan to peruse more gclub
  14. Naked URL Please | Nov 01, 2017
    I’ve read some good stuff here. Definitely worth bookmarking for revisiting. I surprise how much effort you put to create such a great informative website. Naked URL Please
  15. Audiogats | Oct 25, 2017
    Coating DaddyBasic Spray PaintRubber Spray PaintMulti Purpose SpraySpray PaintAudio Text SolutionsInternational Premium Rate Numbers ProvidersInternational Premium Rate Numbers ServicesTelefone MediaAuto DialerSoft SwitchesVoIP Service ProvidersWholesale VoIP Services ProviderBusiness AZ Call TerminationVoIP TerminationSIP TrunkingWinbiz in IndiaProduct PhotographyEcommerce Product Photography360 Degree PhotographyCommercial PhotographyGimbal Mart3 Axis Gimbal3 Axis Gimbal CameraGimbal for GoPro CameraCoating DaddyPrimer Spray PaintRubber Spray PaintAnti Slip Spray PaintBrake and Parts Cleaner Spray PaintPaint RemoverBasic Spray PaintMulti Purpose Spray PaintRubber Spray PaintGimbal Camera Stabilizer3D Gimbal TrioGimbal UOplayGimbal GoProGimbal TrioGimbal UOPlay for iphoneTelefone MediaCall DialerSoft SwitchesVoIP Billing SolutionsWholesale VoIP ProvidersBusiness VoIP ProvidersSIP TrunkingVoIP TerminationWholesale ServicesBusiness VoIP ProviderSIP TrunkingVoIP Billing SolutionsSoft SwitchesCustomize DialerWinbizEcommerce Product Photography3D Product PhotographyProfessional Photography StudioCommercial PhotographyAudio Text SolutionsIPRNInternational Premium Rate Numbers ServicesInternational Premium Rate NumbersCar Spray PaintCoating Daddy BlogAnti Spray PaintRubber Spray PaintBasic Spray PaintCar Spray Paint SellerGimbalGimbal BlogGimbal UOPlayGimbal TrioGimbal GoPro CameraVoIP ServicesAuto DilerSoft SwitchesVoIP Billing SolutionsWholesale VoIP ProviderWholesale VoiP ServicesBusiness VoIP ProviderSIP TrunkingVoIP TerminationWinbiz In India360 degree turntableEcommerce Product Photography3D PhotographyCommercial PhotographyProduct Presentation PhotographySpray PaintCar Spray PaintBasic Car Spray PaintRubber Spray PaintPaint RemovalIPRN NumbersInternation Premium Rate NumbersGimbal in India3 Axis Gimbal GoPro Camera3D Trio Camer GimbalSmartPhone Gimbal StabilizerVoIP Services OnlineVoIP Services ProvidersCustomizer DialerVoIP Billing SolutionsWholesale VoIP ProviderWholesale VoIP Services ProviderWholesale AZ Termination ProviderSIP Trunking ServicesVoIP Termination ServicesWinbiz in IndiaAutomated Product PhotographyEcommerce Product Photography3D Auto Imaging SystemCommercial PhotographyCar Spray PaintAerosol Spray PaintRubber Spray PaintPaint RemoverCar Spray PaintRubber Spray PaintCar Spray PaintMulti Purpose SpraysBasic Spray PaintInternational Premium Rate NumbersInternational Premium Rate Numbers ServicesInternational Premium Rate NumbersIPRN NumbersIPRNIPRN ServicesGimbal Camera StabilizerGimbal TrioHandheld Camera StabilizerGimbal MartGimbal in IndiaGimbal TrioGimbal UOPLayAuto DialerSoft SwitchesVoIP Billing ManagementVoIP RoutesWholesale VoIP ServiesBusiness Wholesale VoIP ProviderSIP TrunkingVoIP Termination ServicesVoIP ServicesCustomize DialerSoftswichesVoIP Billing SolutionsWholesale RoutesWholesale AZ Call TerminationWholesale VoIP Services360 Degree Product Photography360 Product PhotographyCommercial PhotograpyAutomatic PhotographyProduct PhotographyWinbiz ProductWinbiz ServicesWinbiz Solutions
  16. audiogats | Oct 21, 2017
    IPRN Premium Numbers Premium Rate Numbers Premuim Rate Numbers IVR PRN DPRN Audio text solutions GATS Premium rate calls International Premium Rate Number International premium rate numbers Domestic Premium Rate Numbers International premium rate numbers providers  Session Initiation Protocol Interactive Voice Response Domestic Premium Rate Number International Premium Rate Numbers premuim rate Best Payout Numbers primium rate numbers in Spain IPRN premium rate premuim rate primium rate numbers international premium rate numbers providers buy premium rate number premium rate numbers providers ivr hosting iprn ivps service ivr solutions ivrs solutions ivrs solution international premium rate numbers interactive voice response call center international premium rate number providers IPRN providers premium rate numbers Audio text solutions gats team audio text team IPRN premuim rate primium rate numbers preium rate numbers premium rate numbers IVP gats blog audio text solutions blog text solutions blog iprn blog dprn blog premium rate numbers blog international premium rate numbers blog gats contact audio text solutions contact iprn premium rate premium rate numbersgats contact info audio text solutions contact info car paint spray  car spray paints  aerosol spray paint for cars  paint remover  paint remover for metal  spray paint  spray paint cans  plasti dip spray  rubber spray paint for cars  tyre polish  tyre cleaner  bike paint  bike spray paints  spray paint for metal  Foamy cleaner  Brake and Parts cleaner spray paint  aerosol spray paint  metallic spray paint  spray paint for metal  spray paint for plastic  primer spray paint  metal spray paint  cheap spray paint  automotive spray paint  acrylic spray paint  normal spray paint rubber paint  rubber spray  rubber spray paint  rubber paint for cars  rubber coating spray  rubber coating paint  rubber coating for metal  spray paint for cars  rubber paint spray  spray rubber coating  rubber spray coating  best removable spray paints paint remover india  paint remover spray  aerosol spray paint  spray paint for cars  automotive spray paint  tyre polish  tyre cleaner  bike spray paints  paint remover  Spray cleaners  Best Spray cleaners  Spray cleaners in Delhi Commercial Photography  Automated Product Photography  WinBiz 360 degree turntable  Best Automated Product Photography  Automated Product Photography in india  Automated Product Photography in delhi  automatic photography  WinBiz 3D  Winbiz  360 photography  automatic photography  ecommerce product photography  3d photography  commercial photography  product photoshoot  corporate photography  winbiz lightbox  winbiz 3d auto-imaging system  3d photography  commercial photography  360 photography  winbiz in india  winbiz in delhi  winbiz  win biz  professional photography studio  commercial photography  product photoshoot  catalogs emendation  corporate photography  product photography  3 axis gimbal  uo online  trio  uoplay  gimbal dslr  dslr gimbal  3 axis gimbal dslr  3 axis gimbal stabilizer  gopro gimbal  gimbal for gopro  handheld gimbal  gimbal dslr  gimbal gopro  gimbal camera trio  the trio  trio website  3d trio camera  buy best trio gimbal  best trio gimbal buy  trio gimbal at best price  trio gimbal price  trio gimbal price in india  Gimbal In India  Gimbal for iphones  uo online  uoplayer  smartphone gimbal stabilizer  uoplay gimbal  handheld camera stabilizer  uoplay  3 axis gimbal for smartphone  iphone gopro gimbal  3 axis gimbal stabilizer  handheld gimbal stabilize  steady gimbal voip service providers  voip billing system  voip billing software  wholesale routes  voip billing solutions  itel mobile dialer   auto dialer  predictive dialer   call dialer   voip dialer  phone dialler  dialer system  auto dialer system   voip auto dialer  quick dialer  dialer voip  soft switches softswitch  sip softswitch  softswitches  soft switches  best soft switches  soft switches services  soft switches service  best soft switches services  voip service providers  voip billing system  voip billing software  voip south africa  voip phone solutions  voip providers in south africa  voip secutiry solutions  voip phones south africa  voip for business  voip solutions for business  Wholesale Voip Provider  Voip Termination  VOIP Trunk  Sip trunk  Sip gateway  voip business  wholesale routes  voip routes provider  voip wholesale  wholesale service provider  voip wholesale  wholesale az voip termination   wholesale voip termination provider  wholesale termination  voip wholesale rates  voip wholesale carrier  business voip provider  voip business  wholesale routes  voip routes provider  call termination business  voip termination business  wholesale voip business  wholesale routes  Sip trunk  Sip gateway  wholesale voip provider  voip termination business  voip termination process  sip trunking  voip trunk  voip termination provider  voip for call center  voip termination provider  voip termination  wholesale voip termination provider  wholesale voip termination services  wholesale az voip termination  voip call termination  call termination  Wholesale Service for Call Center VOIP  Wholesale Voip Provider  wholesale Voip Termination  wholesale voip services  voip wholesale services  voip wholesale rates 
  17. ASHDGSFG | Oct 19, 2017
    <a href="">abcdefg</a>


  18. ASDFHGJHGSF | Oct 19, 2017
    Like to use the wig to [url=]hair extensions[/url] change the shape of the ladies, may wish to follow some experts tips to [url=]clip in hair extensions[/url] pick their own wig. From the face point of view, round face: you can choose some can cover the cheek in [url=]hair extensions london[/url] the long hair style, so that the performance of [url=]uk hair extensions[/url] the face as long as possible, while the plump face looks petite.
  19. sagsfa | Oct 19, 2017
    Like to use the wig to <a href="">hair extensions</a> change the shape of the ladies, may wish to follow some experts tips to <a href="">clip in hair extensions</a> pick their own wig. From the face point of view, round face: you can choose some can cover the cheek in <a href="">hair extensions london</a> the long hair style, so that the performance of <a href="">uk hair extensions</a> the face as long as possible, while the plump face looks petite.
  20. Eric Rollins | Oct 17, 2017

    One way of calculating security margins (steady-state) is to run energy moves at the present condition of the system, and using short-term load-projections as I have done when I asked an expert to Write my Dissertation on the Adoption of CET, run more energy circulation calculations, and calculate the working edge you have before over-load relays or transformer protection start working and cause stream problems.

  21. Bailey Shaw | Oct 17, 2017

    This is truly a successful way to turn your life into a success story and I hope that all people work their way to make their life success. Essay Writers

  22. | Oct 06, 2017
    I feel really happy to have seen your webpage and look forward to so many more entertaining times reading here. Thanks once more for all the details.
  23. natural cure for bv | Oct 06, 2017
    I will be interested in more similar topics. i see you got really very useful topics , i will be always checking your blog thanks natural cure for bv
  24. David Cyryl | Sep 30, 2017
    look for their master exhortation on it. Drawn out correspondence issues with your director would block the improvement of your Phd proposition.  Coursework Writing Services


  25. Health Benefits of Coffee | Sep 30, 2017
    I found Hubwit as a transparent s ite, a social hub which is a conglomerate of Buyers and Sellers who are ready to offer online digital consultancy at decent cost.Health Benefits of Coffee
  26. Make Him Desire You | Sep 29, 2017
    Thanks for the informative and helpful post, obviously in your blog everything is good..Make Him Desire You
  27. Hero Instinct | Sep 28, 2017
    Thanks for the informative and helpful post, obviously in your blog everything is good.. Hero Instinct
  28. Assignment Master | Sep 25, 2017

    I fully agree with you .Congratulations on sharing such a detailed post.  Many thanks for sharing this lovely post.  Have a super nice day.

    Assignment Master

  29. Florence Eliza | Sep 19, 2017

    This is a to a splendid degree <a href=>Write my Essay Online</a> illuminating article. I in addition concur with your post title and your really well light up your perspective. I am staggeringly rich to see this post. A dedication of gratefulness is all together for share with us. Keep it up and share the all the more most related post. 

    Magnificent work! 

  30. sebrang damar | Jul 22, 2017

    TOKO BIRUObat disfungsi ereksi terbaik saat ini viagra bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini viagra usa bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini viagra Original bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini harga viagra bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini jual viagra eceran bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini obat kuat viagra bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini viagra asli pfizer bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.obat viagra asliobat jual viagratoko jual viagra aslianeka obat pembesar penis terbaik obat pembesar alat vital pria herbal alamiKLG Obat pembesar penis terbaik ini terbukti ampuh.OBAT KLG ASLI Obat pembesar penis terbaik ini terbukti ampuh.OBAT KLG Obat pembesar penis terbaik ini terbukti ampuh.KLG ASLI Obat pembesar penis terbaik ini terbukti ampuh.KLG pills Obat pembesar penis terbaik ini terbukti ampuh.KLG pills asli Obat pembesar penis terbaik ini terbukti ampuh.KLG herbal Obat pembesar penis terbaik ini terbukti ampuh.

    pembesar payudara Jika anda membutuhkan Alat Pembesar Payudara Permanen yang bisa membantu anda mendapatkan hasil yang alami hubungi kami.Jika anda membutuhkan Alat Pengencang Payudara Permanen yang bisa membantu anda mendapatkan hasil yang alami hubungi kami.Pembesar dan Pengencang Payudara Wanita saat ini semakin banyak dicari orang. Disini anda bisa melihat bahwa bra Pembesar Payudara wanita.Disini produk yang terbukti kualitasnya yang dapat membesarkan payudara anda secara permanen yaitu Alat Pembesar Payudara elektrik Permanen.kombinasikan juga dengan kapsul pembesar payudara alami yang sudah terbukti berhasil.Obat disfungsi ereksi terbaik saat ini jual viagra asli bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini viagra usa bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini viagra asli bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.Obat disfungsi ereksi terbaik saat ini obat kuat viagra bisa membuat anda ereksi lebih kuat dan tahan lama di atas ranjang.

    Leave a comment