WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 225
Market Data
Money Market Regulations
ENERGY IN
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Market reform
FIGURE 12
Existing market designs across the world (4/4)
Key Existing Energy Market Design In APAC
Energy-Only
Australian Energy Market
Operator (AEMO) - National
Electricity Market (NEM)
Bilateral
Contract Model
Hybrid Model
Note: It is a Mechanism
Note: It is a Mechanism
Source: IEEFA, Australia Government, IEA
Key Insights
Country/Region
• Electricity generated in eastern and southern Australia is traded through the National Electricity Market (NEM). Generators
make o昀昀ers to sell electricity into the market and the Australian Energy Market Operator (AEMO) schedules the lowest priced
generation available to meet demand
• NEM facilitates the exchange of electricity between generators and retailers
• It interconnects the six eastern and southern states and territories and delivers around 80% of all electricity consumption in
Australia
Australia
• Currently, 90% of the electricity traded is through long-term power purchase agreements (PPAs). However, the two-part tari昀昀
structure of thermal power PPAs has locked electricity distribution companies (DISCOMs) into long-term capacity payments.
Combining this with self-scheduling of power dispatch at a regional-level results in a sub-optimal outcome for the DISCOMs
India
China’s Electricity Market Design combines elements of both energy-only and capacity-based markets, with a growing emphasis on
clean energy
• Energy Only Aspect:
Spot Market: China has a spot market for real-time electricity trading
Medium-to-Long-Term (MLT) Contracts: Almost all (97%) of interprovincial power trade in China takes the form of MLT
contracts
Provincial-Level Trading: Electricity is primarily traded within provinces
• Capacity-Based Aspects:
Power Capacity Market: Ensures su昀케cient capacity for reliability.
Inter-Provincial Trading: E昀昀orts to enhance 昀氀exible, inter-provincial allocation of electricity
China
WEMO 2024
Operators
225
Market Design
