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Post 2025 Market Design – Capacity mechanism – High-level design consultation paper – June 2022

Publication date

The Energy Security Board (ESB) has released a paper outlining its proposed high-level design of a capacity mechanism for the National Electricity Market (NEM).

As part of the Post-2025 market reforms, Energy Ministers tasked the ESB with progressing detailed design work on a mechanism that specifically values capacity in the NEM. The ESB’s high level design paper builds on stakeholder feedback received on the scope of works document and project initiation paper, which were released in December 2021, and the ESB’s further design work. The ESB has also been guided by the principles agreed to by Energy Ministers in September 2021.

The paper outlines the ESB’s preferred approach to key design choices, including:

  • who is eligible to participate
  • the degree of centralisation of forecasting and procurement
  • the nature of the obligation placed on capacity providers in return for a capacity payment
  • the role of interstate trade
  • how costs are passed through to customers.

The ESB sought stakeholder feedback on its high level design and the issues raised in the paper. Submissions closed on 25 July 2022 and are linked below.

The ESB will continue working with stakeholders on developing the final design. The ESB will develop a draft detailed design by the end of the year with a final recommendation due to Ministers early in 2023.

Milestone

Indicative timing

Project initiation paper

16 December 2021

Submissions due on project initiation paper

10 February 2022

High-level design paper release

20 June 2022

Submissions due on high-level design paper

25 July 2022

Draft detailed design paper

December 2022

Final design and draft legislation to Ministers

February 2023

Documents

Attachment Size
Capacity mechanism high-level design consultation paper 1.57 MB
ACCIONA Energia response to Capacity mechanism project high-level design paper 344.67 KB
ACEN response to Capacity mechanism project high-level design paper 515.94 KB
ACF response to Capacity mechanism project high-level design paper 473.57 KB
AEC response to Capacity mechanism project high-level design paper 278.91 KB
AFMA response to Capacity mechanism project high-level design paper 784.79 KB
AGL response to Capacity mechanism project high-level design paper 128.41 KB
Alinta Energy response to Capacity mechanism project high-level design paper 303.46 KB
Aluminium Council response to Capacity mechanism project high-level design paper 868.65 KB
APA response to Capacity mechanism project high-level design paper 846.25 KB
APGA response to Capacity mechanism project high-level design paper 125.43 KB
APPEA response to Capacity mechanism project high-level design paper 225.86 KB
ATCO response to Capacity mechanism project high-level design paper 484.76 KB
Aurora Energy response to Capacity mechanism project high-level design paper 218.68 KB
AUSTELA response to Capacity mechanism project high-level design paper 487.62 KB
Australia Institute response to Capacity mechanism project high-level design paper 248.82 KB
Australian Projections response to Capacity mechanism project high-level design paper 57.76 KB
BCA response to Capacity mechanism project high-level design paper 725.2 KB
BlueScope response to Capacity mechanism project high-level design paper 403.86 KB
Carisbrooke Consulting Group response to Capacity mechanism project high-level design paper 256.77 KB
CEC response to Capacity mechanism project high-level design paper 879.79 KB
CEFC response to Capacity mechanism project high-level design paper 142.02 KB
CEIG Australian Projections response to Capacity mechanism project high-level design paper 749.6 KB
Chemistry Australia response to Capacity mechanism project high-level design paper 191.74 KB
Climate Action Network response to Capacity mechanism project high-level design paper 84.66 KB
Climateworks response to Capacity mechanism project high-level design paper 167.04 KB
CS Energy response to Capacity mechanism project high-level design paper 834.65 KB
CSR Limited response to Capacity mechanism project high-level design paper 121.12 KB
Delta response to Capacity mechanism project high-level design paper 145.14 KB
ECA response to Capacity mechanism project high-level design paper 344.82 KB
Econalytics response to Capacity mechanism project high-level design paper 689.4 KB
EDL response to Capacity mechanism project high-level design paper 747.07 KB
EEC response to Capacity mechanism project high-level design paper 1.25 MB
ENA response to Capacity mechanism project high-level design paper 273.2 KB
EnelX response to Capacity mechanism project high-level design paper 212.95 KB
EnergyAustralia response to Capacity mechanism project high-level design paper 286.51 KB
Engie response to Capacity mechanism project high-level design paper 163.83 KB
Engineers Australia response to Capacity mechanism project high-level design paper 97.55 KB
Environment Victoria response to Capacity mechanism project high-level design paper 173.43 KB
Ergon Energy response to Capacity mechanism project high-level design paper 371.21 KB
EUAA response to Capacity mechanism project high-level design paper 334.77 KB
Evergen response to Capacity mechanism project high-level design paper 292.39 KB
Federation AM response to Capacity mechanism project high-level design paper 185.05 KB
Fern (Private Individual) response to Capacity mechanism project high-level design paper 442.68 KB
Finncorn response to Capacity mechanism project high-level design paper 331.79 KB
Flow Power response to Capacity mechanism project high-level design paper 265.77 KB
Fluence response to Capacity mechanism project high-level design paper 79.29 KB
Fortescue Future Industries response to Capacity mechanism project high-level design paper 282.37 KB
FRV response to Capacity mechanism project high-level design paper 758.56 KB
Gibson Crest response to Capacity mechanism project high-level design paper 3.38 MB
GloBird response to Capacity mechanism project high-level design paper 303.35 KB
Healthy Futures response to Capacity mechanism project high-level design paper 730.42 KB
Hydro Tasmania response to Capacity mechanism project high-level design paper 2.75 MB
Iberdrola response to Capacity mechanism project high-level design paper 197.28 KB
Iberdrola response to Capacity mechanism project high-level design paper - attachment 1.78 MB
IEFFA response to Capacity mechanism project high-level design paper 471.06 KB
Lloyd Roberts and Associates response to Capacity mechanism project high-level design paper 208.1 KB
LMS response to Capacity mechanism project high-level design paper 372.23 KB
MEU response to Capacity mechanism project high-level design paper 111.88 KB
Monash University response to Capacity mechanism project high-level design paper 82.25 KB
NCC response to Capacity mechanism project high-level design paper 125.42 KB
Nexa Advisory response to Capacity mechanism project high-level design paper 297.5 KB
Origin Energy response to Capacity mechanism project high-level design paper 271.66 KB
Pacific Hydro response to Capacity mechanism project high-level design paper 135.46 KB
Pollination response to Capacity mechanism project high-level design paper 140.2 KB
Private individual submissions to Capacity mechanism project high-level design paper 1.93 MB
Quinbrook response to Capacity mechanism project high-level design paper 502.41 KB
Reach Solar response to Capacity mechanism project high-level design paper 175.99 KB
ReAmped Energy response to Capacity mechanism project high-level design paper 68.15 KB
Shell Energy response to Capacity mechanism project high-level design paper 389.5 KB
Smart Energy Council response to Capacity mechanism project high-level design paper 296.95 KB
Snowy Hydro response to Capacity mechanism project high-level design paper 394.63 KB
Solar Citizens response to Capacity mechanism project high-level design paper 189 KB
Squadron Energy response to Capacity mechanism project high-level design paper 686.82 KB
Stanwell response to Capacity mechanism project high-level design paper 338.49 KB
Telstra response to Capacity mechanism project high-level design paper 1.7 MB
Tesla response to Capacity mechanism project high-level design paper 262.83 KB
TIC response to Capacity mechanism project high-level design paper 232.79 KB
Tilt Renewables response to Capacity mechanism project high-level design paper 368.79 KB
UNSW CEEM response to Capacity mechanism project high-level design paper 1.12 MB
Wartsila response to Capacity mechanism project high-level design paper 144.77 KB
Wattwatchers response to Capacity mechanism project high-level design paper 204.55 KB
Windlab response to Capacity mechanism project high-level design paper 393.09 KB

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