Solution section
Capacity & Adequacy
How resource adequacy and investment sufficiency are addressed.
Capacity & Adequacy
The NEM does not map neatly onto the same capacity-market model as Great Britain or PJM.
Adequacy has historically relied heavily on energy and scarcity pricing, supplemented by reliability mechanisms and increasingly long-term investment underwriting.
Capacity and investment therefore need to be assessed as a broader architecture rather than by asking whether one conventional capacity market exists.