NEM one of the world’s longest interconnected
systems.
NEM covers the five interconnected Australian states of Queensland, New South Wales,
South Australia, Victoria and Tasmania, and
represents 89% of the country’s generation
capacity. The Australian Energy Market Operator
(AEMO) is the ISO. Alongside traditional SO
functions, AEMO publishes a long-term transmission programme known as the National
Transmission Network Development Plan
(NTNDP) and makes regional demand forecasts
as part of its role of national transmission planner. AEMO is also directly responsible for
transmission planning in the state of Victoria.
Transmission services are provided by a transmission network service provider (TSNP) for
each state and which are jointly state- and privately owned. There are 13 major distribution
networks, each of which is a monopoly provider
in its designated region. The market is regulated
by the Australian Energy Regulator (AER). The
structure of the Australian power sector before
and after the formation of the NEM is shown in
Fig. 43.
(2) Transmission planning
While AEMO conducts transmission planning in
Victoria, TOs in other states are responsible for
their own investment planning. TOs are required
to publish annual planning reports (APRs) analysing their proposed network investments over
the next five years. TOs have to take into account
AEMO’s National Transmission Network
Development Plan (NTNDP) or risk financial
penalties. They coordinate their plans with those
of the distribution companies in their networks.
While TOs are obliged to take the NTNDP into
account, they retain autonomy over final planning decisions.
The NTNDP sets out AEMO’s strategic
national vision for transmission planning over a
period of 20 years. Consistent with requirements
for TOs, AEMO takes recent APRs into account
when preparing its national transmission development plan. The aim of the NTNDP is to provide a long-term focus for investment planning
and inform TOs of likely future developments,
rather than influence individual investment
decisions. The entire planning process is
designed to create a positive feedback loop
Fig. 43 Structure of the Australian electricity system.
Note State-owned companies are in red, privately-owned
companies are in blue. Segments containing a mix of
privately and publicly owned companies are in grey.
Source Vivid Economics
Special Report 1: A Study of China’s Energy Supply Revolution
121
systems.
NEM covers the five interconnected Australian states of Queensland, New South Wales,
South Australia, Victoria and Tasmania, and
represents 89% of the country’s generation
capacity. The Australian Energy Market Operator
(AEMO) is the ISO. Alongside traditional SO
functions, AEMO publishes a long-term transmission programme known as the National
Transmission Network Development Plan
(NTNDP) and makes regional demand forecasts
as part of its role of national transmission planner. AEMO is also directly responsible for
transmission planning in the state of Victoria.
Transmission services are provided by a transmission network service provider (TSNP) for
each state and which are jointly state- and privately owned. There are 13 major distribution
networks, each of which is a monopoly provider
in its designated region. The market is regulated
by the Australian Energy Regulator (AER). The
structure of the Australian power sector before
and after the formation of the NEM is shown in
Fig. 43.
(2) Transmission planning
While AEMO conducts transmission planning in
Victoria, TOs in other states are responsible for
their own investment planning. TOs are required
to publish annual planning reports (APRs) analysing their proposed network investments over
the next five years. TOs have to take into account
AEMO’s National Transmission Network
Development Plan (NTNDP) or risk financial
penalties. They coordinate their plans with those
of the distribution companies in their networks.
While TOs are obliged to take the NTNDP into
account, they retain autonomy over final planning decisions.
The NTNDP sets out AEMO’s strategic
national vision for transmission planning over a
period of 20 years. Consistent with requirements
for TOs, AEMO takes recent APRs into account
when preparing its national transmission development plan. The aim of the NTNDP is to provide a long-term focus for investment planning
and inform TOs of likely future developments,
rather than influence individual investment
decisions. The entire planning process is
designed to create a positive feedback loop
Fig. 43 Structure of the Australian electricity system.
Note State-owned companies are in red, privately-owned
companies are in blue. Segments containing a mix of
privately and publicly owned companies are in grey.
Source Vivid Economics
Special Report 1: A Study of China’s Energy Supply Revolution
121