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Australian Energy Council Double-Sided Causer Pays Study

Sector: Power Generation (CCGT) • Location: Australia

Source: Australian Renewable Energy Agency (ARENA)

Project
Closed

This project is a desktop study of double-sided causer pays (DSCP) as a long-term incentive mechanism to improve frequency control.Key resultsThis project undertook investigations into upgrading the system that promotes and pays for frequency control in the National Electricity Market (NEM).Based on Frequency Deviation Pricing (FDP) concepts, the proposed system would complement and extend arrange

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The project “Australian Energy Council Double-Sided Causer Pays Study” is an infrastructure initiative in the Power Generation (CCGT) sector, located in Australia. Taiyo aggregates data on it from Australian Renewable Energy Agency (ARENA).

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Description

Description

This project is a desktop study of double-sided causer pays (DSCP) as a long-term incentive mechanism to improve frequency control.Key resultsThis project undertook investigations into upgrading the system that promotes and pays for frequency control in the National Electricity Market (NEM).Based on Frequency Deviation Pricing (FDP) concepts, the proposed system would complement and extend arrangements that mandate primary frequency control capability and reserve units for slower moving control. It would also replace the system for paying for regulation which has declined in effectiveness.The arrangements examined and recommended by this project, if implemented, would reduce barriers to the entry of renewables by encouraging greater participation and competition in the provision of frequency control services.

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High

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100%

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