In another significant step towards 50 per cent renewables by 2030, the Northern Territory Government has today released policy position and consultation papers on priority electricity market reforms.
Addressing system security, reliability and efficiency; encouraging private investment and maximising the amount of renewable power in our network are the main focus points of the final position paper on dispatch and settlement, and consultation papers on essential system services and reliability reforms.
The Northern Territory Electricity Market Priority Reform Program has been designed to promote competition by facilitating private sector investment in lower cost and cleaner technologies.
Territory households and businesses will benefit from the anticipated downward pressure on electricity costs as a result of a more competitive and lower-cost industry.
The Territory's power systems are evolving as we transition to solar.
The Priority Reform Program will assist government in delivering cleaner and cheaper power for Territorians by implementing reforms to:
- Dispatch – ensuring that the most cost-effective combination of generation (including thermal and renewable generators) is dispatched in the Darwin-Katherine system. This will be achieved by allocating the System Controller responsibility for scheduling generators based on up-to-date information about generator costs and availability.
- Settlement – facilitating private sector investment by making it easier for retailers and generators, including new renewables generators, to buy and sell electricity in the Darwin-Katherine system. This will be achieved by introducing financial settlement by the Market Operator.
- Essential System Services – ensuring the changing technical requirements for system security are met in the most cost-effective way by enabling their provision by the full range of capable technologies, including batteries and renewables generators.
- Reliability – ensuring system reliability meets customer expectations while also keeping costs are as low as possible.
Electricity industry stakeholders are being fully consulted on the details of the priority reforms.
Stakeholders are invited to participate in further stakeholder working group consultation on the essential system services and reliability consultation papers by making written submissions and attending stakeholder workshops.
Final position papers on the essential system services and reliability reforms are expected to be released by mid-2021.
The announcement of the Government's priority electricity market reforms follows the Government's announcement of a large scale battery energy storage system (BESS) for the Darwin-Katherine system at a project cost of $30M.
Procurement of the BESS is progressing on track for delivery in the second half of 2022.
The Northern Territory Electricity Market Priority Reform Program position and consultation papers can be found at https://business.nt.gov.au/electricityreforms
Quotes from Minister for Renewables and Energy, Eva Lawler:
"Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs.
"These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.
"Electricity market reform is complex. Government has been carefully working through stakeholder feedback and design considerations to inform its priority electricity market reforms."
