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Australian NEM + Dynamic Network Access

An emerging architecture combining five-minute regional wholesale dispatch and pricing with separate distribution-network access limits and increasing DER coordination.

At a glance

Price geography
Zonal or regional
Coordination
Centralised

Why consider it?

An emerging architecture combining five-minute regional wholesale dispatch and pricing with separate distribution-network access limits and increasing DER coordination.

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Architecture at a glance

Wholesale energy pricing and distribution network access are related but distinct layers, each dynamic in its own way.

  1. Participants (generators & retailers)

  2. Five-minute regional wholesale dispatch

    Rolling interval clearing

  3. Regional reference price

Distribution edge — a separate layer

Related to, but distinct from, the wholesale layer above.

  1. DER / customer

  2. Dynamic operating envelope

    Dynamic network access, set per connection

  3. Distribution network

Solution section

Overview

A high-level introduction to the market architecture.

Overview

The Australian National Electricity Market combines frequent central dispatch with regional wholesale settlement.

AEMO repeatedly dispatches the bulk power system at five-minute intervals while transmission constraints influence the central dispatch solution.

At the distribution level, Australia is also developing more dynamic approaches to distributed-energy-resource access, including dynamic operating envelopes and flexible import and export limits.

The resulting architecture can be understood as a fast regional wholesale energy market combined with an increasingly intelligent network-access layer.

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