Solution section
Investment & Cost Recovery
How fixed costs, investment and resource adequacy are supported.
Investment & Cost Recovery
Investment returns can combine:
- wholesale spot revenues;
- financial contracts;
- ancillary-service revenue;
- policy support;
- reliability mechanisms;
- long-term underwriting arrangements.
The NEM has historically placed substantial emphasis on energy and scarcity revenues, but the wider investment architecture continues to evolve.
Dynamic network access can additionally affect the value of DER investment by changing how much import or export capability is available.