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Fix the energy market
Draft

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.

Solution section

Scarcity & Reliability

How scarcity, reliability and constrained access are managed.

Scarcity & Reliability

Wholesale scarcity can be reflected through high regional spot prices and central dispatch.

Reliability is additionally supported through:

  • reserves;
  • ancillary services;
  • reliability mechanisms;
  • system-operator intervention.

At distribution level, scarcity may appear as tighter dynamic operating envelopes.

This creates a separate allocation problem: when local network headroom is scarce, how should that capability be distributed among users?