Transmission access reform Consultation paper – May 2022
Publication date
ESB is undertaking a comprehensive stakeholder consultation on new arrangements for managing congestion in the National Electricity Market. The access reform work strand seeks to promote investment certainty, manage access risk, boost operational efficiency and incentivise technologies that alleviate congestion.
These reforms are needed to provide a stable foundation for investment in State REZ schemes. The ESB has released a consultation paper that seeks feedback on four shortlisted models that have been developed through significant stakeholder consultation:
Investment timeframes |
Operational timeframes |
Congestion zones with connection fees Investors receive clear up-front signals about which network locations have available hosting capacity. |
CMM with universal rebates Establishes a single, combined-bid energy and congestion market |
Transmission queue Investors that connect in uncongested locations receive priority rights. |
Congestion relief market (CRM) Changes to the market and settlements to provide separate revenue streams for energy and congestion relief. |
In assessing preferred models put forward in response to the project initiation paper published in November 2021, the ESB considered the key challenges and trade-offs associated with each model and particularly looked at how the models could support and strengthen State REZ schemes to ensure coordination across the NEM.
Going forward, the ESB will continue to work with stakeholders to develop these models to a sufficient level of detail to support a recommendation to Ministers. The ESB anticipates that detailed design will be a hybrid model that incorporates one of the investment models and one of the operational models set out in this paper.
It will be necessary to strike a balance between giving investors flexibility to connect where they want and protecting investors from excessive congestion. The latter will also protect consumers, since excessive congestion increases costs for them, either through having to use electricity from more expensive generators or through building greater network capacity.
Next steps
The ESB is undertaking further detailed design work on their proposal. This will include comprehensive consultation with all relevant stakeholders and interested parties. The key milestones for the congestion management detailed design process are set out below:
Milestone |
Indicative timing |
Project initiation paper |
18 November 2021 |
Public webinar on project initiation paper |
26 November 2021 |
Submissions due on project initiation paper |
28 January 2022 |
Open seminar on alternative options for congestion management |
24 February 2022 |
Consultation paper |
5 May 2022 |
Submissions due on consultation paper |
10 June 2022 |
Draft recommendations for detailed design |
September 2022 |
Submissions due |
October 2022 |
Submit proposed rule change to Energy Ministers |
Early December 2022 |