{"id":39136,"date":"2020-04-22T13:29:06","date_gmt":"2020-04-22T02:59:06","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=39136"},"modified":"2020-04-22T13:29:06","modified_gmt":"2020-04-22T02:59:06","slug":"coag-energy-council-consultation","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/coag-energy-council-consultation\/","title":{"rendered":"COAG Energy Council Wants To Expose Consumers To Wholesale Energy Price"},"content":{"rendered":"

\"COAG<\/p>\n

The Council of Australian Governments (COAG) Energy Council has issued a consultation paper designed to inform the NEM\u2019s transition to a two-sided market.<\/p>\n

The consultation paper, here as a PDF<\/a>, is designed to get input into the Energy Council\u2019s two-sided market design proposal, due by the end of this year. This will eventually become part of the Energy Security Board\u2019s (ESB\u2019s) transition to the 2025 NEM market design. In a two-sided market, energy consumers get full visibility of wholesale pricing, to help them decide whether they\u2019re buying from or selling to the grid.<\/p>\n

A two-sided market design, the consultation paper notes, has to shield both consumers and the grid from risk.<\/p>\n

\u201cHowever, the transition also includes challenges for security and reliability as supply and demand becomes more variable and uncertain, and the industry transitions away from generation that traditionally delivered security services (such as inertia and voltage control). Any new market design needs to realise the benefits and mitigate the risks involved in the transition\u201d, the paper notes.<\/p><\/blockquote>\n

Data is Key<\/h2>\n

Data is key to all this: the Energy Council explained in its media release (PDF)<\/a> that information about solar panels, batteries, electric vehicles and smart devices is hidden \u201cbehind the meter\u201d, and that makes it hard for AEMO to predict whether households can contribute enough kilowatt-hours so supply meets demand.<\/p>\n

In the release, ESB chair Dr Kerry Schott says:<\/p>\n

\u201cA two-sided market will change all that because consumers and those who participate in the wholesale market on their behalf will be active in responding to price.\u201d<\/p><\/blockquote>\n

If the data is real-time and transparent,<\/p>\n

\u201cthe information itself becomes a tool to keep the power system operating securely and reliably and can fill gaps when the sun isn\u2019t shining and the wind isn\u2019t blowing.\u201d<\/p><\/blockquote>\n

Making end-to-end data more available will also replace today\u2019s complex information about retailers, generators, aggregators and users with:<\/p>\n

\u201ctwo simple categories \u2013 those who use electricity and those who sell it on behalf of end users\u201d.<\/p><\/blockquote>\n

The discussion paper says a two-sided NEM would:<\/p>\n