To assist with the development of the Northern Region Sustainable Water Strategy in Victoria, this paper assesses different options for improving supply reliability in systems regulated by large dams. Frontier Australia’s analysis suggests that giving water entitlement holders greater flexibility to individually hold water in storage for use in future years is likely to be a key in ingredient in reducing water shortfalls in very dry years as it allows them to manage their supplies across time. In contrast, ‘resizing’ entitlements (to increase their reliability) or purchasing additional entitlements are likely to be relatively ineffective in achieving the same goal.DOWNLOAD FULL PUBLICATION
The Australian Energy Market Commission (AEMC) has released the final report of its Congestion Management Review (CMR).
The CMR examined the Rules for the National Electricity Market that govern how network congestion is managed, and considered how those Rules could be improved to assist participants in managing the risks associated with transmission congestion more efficiently.
Frontier (Australia) assisted the AEMC throughout the course of the CMR, principally through the development of a modelling framework and methodology for estimating the welfare losses arising from the influence of network congestion on generators' bidding incentives in a regional electricity market.
In addition, Frontier advised the AEMC of the merits of Generator Nodal Pricing in the context of the National Electricity Market by way of a qualitative review of the theory and international application of nodal pricing in markets elsewhere.
