National Electricity Market

The National Electricity Market (NEM) is an arrangement in Australia's electricity sector for the connection of the electricity transmission grids of the eastern and southern Australia states and territories to create a cross-state wholesale electricity market.[1] The Australian Energy Market Commission develops and maintains the Australian National Electricity Rules (NER), which have the force of law in the states and territories participating in NEM. The Rules are enforced by the Australian Energy Regulator. The day-to-day management of NEM is performed by the Australian Energy Market Operator.

NEM operations began on 13 December 1998 and currently covers Queensland, New South Wales, Australian Capital Territory, Victoria, Tasmania and South Australia.[1] Western Australia and the Northern Territory are not connected to the NEM.[1] The NEM comprises five regions, with the ACT being in the NSW region. Tasmania joined the NEM in May 2005 and became fully operational on 29 April 2006 when the Basslink interconnector was fully activated.[2] The Snowy region was abolished as a region on 1 July 2008 and the components split between New South Wales and Victoria.[3] The Northern Territory has adopted parts of the National Electricity Law, with the Australian Energy Market Commission becoming the rule maker for the Territory for parts of the National Electricity Rules from 1 July 2016.[4] Western Australia is also considering adopting parts of the NER.[4]

The NEM operates one of the world’s longest interconnected power systems between Port Douglas, Queensland and Port Lincoln, South Australia, with an end-to-end distance of more than 5,000 kilometres, and 40,000 kilometres of high voltage transmissions line.[5] During the 2017-18 financial year, 203 TWh of electricity with a market value of AU$17 billion was traded through the NEM, serving 9.7 million end-use consumers.[5] Approximately 40% of NEM generation is consumed in New South Wales, while Victoria and Queensland consume approximately 25% each.

FY19/20 rooftop solar capacity was 10,696MW, NEM capacity 49,832MW, NEM demand 35,626MW [6]

  1. ^ a b c "National Electricity Market". AEMC.
  2. ^ "Power flows through Basslink". ABC News Online. 29 April 2006.
  3. ^ "Snowy region to be abolished 1 July 08 under the National Electricity Rules". AEMC.
  4. ^ a b "AEMC becomes electricity rule maker for the Northern Territory on 1 July 2016". AEMC.
  5. ^ a b State of the Energy Market 2018. Melbourne, Victoria: Australian Competition and Consumer Commission. 2018. p. 75. ISBN 978-1-920702-11-3.
  6. ^ "Annual Market Performance Review 2020". AEMC.