Wholesale Demand Response Baselines Eligibility and Compliance

Publication date:
5 February 2021
Resource type:
Submission

PIAC made a submission to the Australian Energy Market Operator (AEMO) on its draft Baselines Eligibility and Compliance Metrics Policy for Wholesale Demand Response (WDR).

PIAC recommends AEMO reflect the broad benefits of WDR and its role in realising them through the design and operation of the WDR market in its approach to its baselining eligibility and compliance metrics policy. We strongly urge AEMO to take an approach to WDR settings that encourages the development of the mechanism and prioritises predictability, measurability and operability only to the extent necessary to realise benefits for consumers.

We highlight it is not optimal for AEMO to aim to minimise the risk of inaccuracy or bias alone. AEMO should aim to co-optimise risk management with incentivising participation to ensure WDR develops and delivers its intended benefits of lower wholesale prices, more efficient energy systems, and a faster transition to zero-emissions energy.

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