Five-minute settlement rule needed for electricity market

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If the National Electricity Market (NEM) is to provide stability into the future, the Australian Energy Market Commission needs to implement the five-minute energy settlement rule change, according to Reposit Power CEO Dean Spaccavento.

The rule change proposes to reduce the price settlement time in the NEM from 30 minutes to five minutes, to incentivise the rapid deployment of storage technologies such as batteries.

Speaking tomorrow at the Australian Energy Market Commission Public forum on the directions paper for five-minute settlement, Spaccavento said that Australia will increasingly require fast response electricity generation.

“Our market is evolving and we will need fast responding technologies such as batteries to provide stability” Spaccavento said.

“Fast responding technologies can provide instant assistance when the market becomes unstable.

“The five-minute settlement change will reduce inefficiencies and incentivise fast responding technologies to provide much needed stability. The current 30-minute settlement is making the market unnecessarily inefficient.

“Technology has evolved and the market won’t be able to receive the full benefit of this new technology until we have five-minute settlement.

“The rule change will also create greater transparency in the market and create a level playing field across generation technology.”