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Benchmark Reserve Capacity Price

The Reserve Capacity mechanism is intended to ensure that the South West Interconnected System (SWIS) 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 (WEM).

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

A Benchmark Reserve Capacity Price (BRCP) 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 SWIS. The ERA is required to review a report provided by the AEMO that proposes a revised value of BRCP. In approving the value submitted by the AEMO, the ERA is only required to consider if the revised value reasonably reflects methodology specified in the WEM Rules and whether an adequate public consultation process has been conducted.

The Benchmark Reserve Capacity Price was renamed from the Maximum Reserve Capacity Price as a result of amendments to the Market Rules that commenced on 1 July 2016 as part of the Electricity Market Review.

Decision Papers

Date Documents File type
31-Jan-17 Decision on the Benchmark Reserve Capacity Price proposed by the Australian Energy Market Operator for the 2019/20 Reserve Capacity Year
Adobe PDF 505 kB

Description: Decision on the Benchmark Reserve Capacity Price proposed by the Australian Energy Market Operator for the 2019/20 Reserve Capacity Year
08-Mar-16 Decision on the Maximum Reserve Capacity Price Proposal for 2018/19
Adobe PDF 385 kB

Description: Maximum Reserve Capacity Price Decision 2018 to 2019
30-Jan-15 Decision on the Maximum Reserve Capacity Price Proposal for 2017/18
Adobe PDF 112 kB

Description: Decision on the Maximum Reserve Capacity Price Proposal for 2017/18
30-Jan-14 Decision on the Maximum Reserve Capacity Price Proposal for 2016/17
Adobe PDF 298 kB

30-Jan-13 Decision on the Maximum Reserve Capacity Price Proposal for 2015/16
Adobe PDF 323 kB

27-Feb-12 Decision on the Maximum Reserve Capacity Price Proposal for 2014/15
Adobe PDF 178 kB

28-Jan-11 Decision on the Maximum Reserve Capacity Price Proposal for 2013/14
Adobe PDF 140 kB

29-Jan-10 Decision on the Maximum Reserve Capacity Price Proposal for 2012/13
Adobe PDF 134 kB

20-Jan-09 Decision on the Maximum Reserve Capacity Price Proposal for 2011/12
Adobe PDF 107 kB

Description: (Competition, Markets & Electricity Division) Markets>Wholesale Electricity Market Surveillance>Maximum Reserve Capacity Price
16-Jan-08 Decision on the Maximum Reserve Capacity Price Proposal for 2010/11
Adobe PDF 85 kB

Description: (Competition, Markets & Electricity Division) Markets>Wholesale Electricity Market Surveillance>Maximum Reserve Capacity Price
30-Jan-07 Decision on the Maximum Reserve Capacity Price Proposal for 2009/10
Adobe PDF 2 MB

Description: (Competition, Markets & Electricity Division) Markets>Wholesale Electricity Market Surveillance>Maximum Reserve Capacity Price

Submissions

Date Documents File type
31-Jan-17 Submission - Benchmark Reserve Capacity Price for the 2019/20 Reserve Capacity Year - AEMO
Adobe PDF 1 MB

Description: Submission - Benchmark Reserve Capacity Price for the 2019/20 Reserve Capacity Year - AEMO
09-Mar-16 Submission - Maximum Reserve Capacity Price for the 2018/19 Capacity Year - AEMO
Adobe PDF 2 MB

Description: Submission - Maximum Reserve Capacity Price for the 201819 Capacity Year - AEMO
30-Jan-13 Submission – Maximum Reserve Capacity Price for the 2015/16 Capacity Year - Independent Market Operator
Adobe PDF 15 MB