Australia’s other regulated industries and was
characterised by low productivity growth and
inefficient performance.
The electricity sector underwent market
reform in the 1990s, with a move towards private
ownership that began with the breakup of vertically integrated monopolies into generation,
transmission, distribution and retail components.
In the late 1990s, generation and retail were
largely privatised, with some transmission and
distribution companies following suit. The
National Electricity Market (NEM) began operations in 1998 as Australia’s first wholesale spot
market. To facilitate the new power pool, market
reforms were accompanied by significant
investment in interconnection capacity, making
Table 7 Summary of network arrangements in Germany
Institutional
arrangements
Transmission planning and
delivery
Network
pricing
Modernising
network
arrangements
Institutional model:
Germany has four
transmission
networks
Two of them are
operated by TSOs
The other two
are vertically
integrated, with
the generation
companies RWE
and EnBW owning
transmission
assets
Planning:
TSOs are responsible for
setting transmission
development frameworks
which are then reviewed by
the federal network agency
TSOs then define network
investment plans in line with
these frameworks
Depending on project scope,
state governments or the
federal network agency then
provide final approval for
projects
Delivery:
TSOs are responsible for
delivering their own projects
Investment regime:
The four German TSOs
coordinate their system
operation and planning
German TSOs are part of
ENTSO-E, which coordinates
network development and
planning across European
TSOs
There is no merchant
transmission investment in
Germany
Uniform
pricing
Readiness for
decarbonisation:
TSOs run auctions
for demand
curtailment
services
These auctions
are tailored
towards mediumto large-sized
industrial
customers with
high consumption
Residential end
users can
participate
indirectly through
aggregators
Several pilot
projects and
government
funding for storage
Note ENTSO-E = European Network of Transmission System Operators for Electricity.
Source Vivid Economics
120
W. Xiaoming et al.
characterised by low productivity growth and
inefficient performance.
The electricity sector underwent market
reform in the 1990s, with a move towards private
ownership that began with the breakup of vertically integrated monopolies into generation,
transmission, distribution and retail components.
In the late 1990s, generation and retail were
largely privatised, with some transmission and
distribution companies following suit. The
National Electricity Market (NEM) began operations in 1998 as Australia’s first wholesale spot
market. To facilitate the new power pool, market
reforms were accompanied by significant
investment in interconnection capacity, making
Table 7 Summary of network arrangements in Germany
Institutional
arrangements
Transmission planning and
delivery
Network
pricing
Modernising
network
arrangements
Institutional model:
Germany has four
transmission
networks
Two of them are
operated by TSOs
The other two
are vertically
integrated, with
the generation
companies RWE
and EnBW owning
transmission
assets
Planning:
TSOs are responsible for
setting transmission
development frameworks
which are then reviewed by
the federal network agency
TSOs then define network
investment plans in line with
these frameworks
Depending on project scope,
state governments or the
federal network agency then
provide final approval for
projects
Delivery:
TSOs are responsible for
delivering their own projects
Investment regime:
The four German TSOs
coordinate their system
operation and planning
German TSOs are part of
ENTSO-E, which coordinates
network development and
planning across European
TSOs
There is no merchant
transmission investment in
Germany
Uniform
pricing
Readiness for
decarbonisation:
TSOs run auctions
for demand
curtailment
services
These auctions
are tailored
towards mediumto large-sized
industrial
customers with
high consumption
Residential end
users can
participate
indirectly through
aggregators
Several pilot
projects and
government
funding for storage
Note ENTSO-E = European Network of Transmission System Operators for Electricity.
Source Vivid Economics
120
W. Xiaoming et al.