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Benchmark Reserve Capacity Price

The Reserve Capacity mechanism is intended to ensure that the South West Interconnected System has adequate installed capacity available from generators and demand-side management options at all times in order to:

  • Cover expected system peak demand, including additional capacity to cover the failure of the largest generator on the system and a capability to respond to frequency variations.
  • Remove the need for high and volatile energy prices in the Wholesale Electricity Market.

The Australian Energy Market Operator (AEMO) administers the Reserve Capacity mechanism.

A Benchmark Reserve Capacity Price is set for each Capacity Year and determines the expected cost of new entrant peaking plant and other costs required to establish plant capable of supplying electricity to the South West Interconnected System.

From 1 July 2021, the ERA must determine the value of the Benchmark Reserve Capacity Price consistent with the method specified in the Wholesale Electricity Market rules. This includes public consultation on the proposed value before the ERA determines the Benchmark Reserve Capacity Price to apply in the capacity year.

2022 Benchmark Reserve Capacity Price to apply to the 2024-25 capacity year

Papers

Date Documents File type
17-Dec-21 Final Determination
Adobe PDF 573 kB

10-Nov-21 Draft Determination
Adobe PDF 483 kB

10-Nov-21 Consultant Report - GHD Advisory
Adobe PDF 557 kB

10-Nov-21 Consultant Report - PricewaterhouseCoopers
Adobe PDF 636 kB

10-Nov-21 Consultant Report - Western Power
Adobe PDF 486 kB

10-Nov-21 Consultant Report - Landgate
Adobe PDF 189 kB

Page last updated: 15 Dec 2021