Northern Territory Electricity Market Priority Reform Program

The Northern Territory (NT) electricity supply industry is undergoing a significant transition, and reform is required to facilitate an increasing number of market participants and the adoption of emerging technologies that will support the government’s target of 50% renewable energy by 2030, while maintaining secure, reliable and least cost electricity for consumers and taxpayers.

On 12 June 2020, the NT Government announced the Northern Territory Electricity Market Priority Reform Program to:

  • improve coordination of solar and gas-fired generators
  • ensure there is sufficient generation capacity available to meet consumers’ needs
  • facilitate payments between retailers and generators
  • improve the efficiency of the provision of essential power system security services.

Electricity industry stakeholders will be fully consulted on the detail of the reforms and their implementation through working groups and formal consultation papers.

To read the media release on delivering cheap and clean power through more renewables, go to the Northern Territory Government Newsroom.

The delivery of the government’s priority reform program is being overseen by a Design Development Team, comprising officers from the Economic Policy unit of the Department of Treasury and Finance and the Office of Sustainable Energy within the Department of Industry, Tourism and Trade.

Stakeholder Working Group

A Stakeholder Working Group has been established to inform the detailed design of the priority electricity market reforms. The purpose of the Stakeholder Working Group is to give stakeholders an opportunity to provide informal feedback on the design of the proposed reforms outside (and additional to) formal consultation processes.

A series of Stakeholder Working Group workshops on the priority electricity reforms are being conducted as required and in accordance with social distancing requirements.

Interested parties that would like to participate in the Stakeholder Working Group may nominate an appropriate representative. Nominations are to be emailed to electricityreform@nt.gov.au. The following details should be provided in a nomination email:

  • name of representative
  • organisation
  • contact phone number
  • contact email address.

Please note that if you have already nominated to join the Stakeholder Working Group, including to participate in a previous stakeholder workshop, you are not required to re‑nominate.

Contact

Design Development Team
Northern Territory Electricity Market Priority Reform Program
Department of Treasury and Finance and Department of Industry, Tourism and Trade
electricityreform@nt.gov.au

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Information for stakeholders on the Northern Territory Electricity Market Priority Reform Program are outlined in the introductory notes on scope and work program.

Get introductory notes on scope and work program.

Introductory notes on scope and work program PDF (296.9 KB)
Introductory notes on scope and work program DOCX (203.3 KB)

The paper provides introductory notes on:

  • the components that will form the priority electricity market reforms
  • the work program for design and implementation of the new arrangements
  • opportunities for stakeholder engagement.

Policy position paper

The policy position paper: priority changes to dispatch and settlement outlines the government’s policy positions for reforms in the Darwin-Katherine system to:

  • the dispatch process to better accommodate the increased number of generators in the system and increased variability from intermittent generation sources
  • introduce financial settlement of out-of-balance energy to accommodate contractual arrangements that may be entered into by new (or existing) participants.

Get the priority changes to dispatch and settlement policy position paper.

Priority changes to dispatch and settlement policy position paper PDF (1.1 MB)
Priority changes to dispatch and settlement policy position paper DOCX (552.3 KB)

With the growing uptake of utility scale and behind-the-meter solar PV and emergence of new technologies capable of providing essential system services, it is timely for the Territory’s arrangements to be reviewed to ensure that essential system services delivery is economically efficient and at least cost but with no compromise to system security.

The proposed changes to the essential system services arrangements are:

  • updating the quantum of the rate paid to Territory Generation for essential system services by other generators
  • codifying the process for reviewing and updating the quantum of the rate to ensure the rate remains up-to-date
  • improving the transparency of costs for individual and categories of services captured in the rate, such as by defining and separately costing each essential system services required.

In addition to the implementation of changes to the provision of essential system services by Territory Generation, the government recognises that there may be benefits from contestability in the provision of essential system services.

In reviewing essential system services, the Design Development Team will review potential arrangements for the market provision of essential system services in the Territory’s regulated electricity systems (Darwin-Katherine, Alice Springs and Tennant Creek).

Issues paper

The essential system services review issues paper forms the first part of the Design Development Team’s consultation for the review and outlines the background to the review, its scope and identifies a range of issues on which stakeholder feedback and advice is sought.

Get the review of essential system services issues paper.

Review of essential system services issues paper PDF (396.8 KB)
Review of essential system services issues paper DOCX (222.5 KB)

Submissions

Issue paper submissions were received from:

For an alternative copy of the submission documents, email electricityreform@nt.gov.au.

Draft position paper

The review of essential system services draft position paper sets out the Design Development Team’s proposed design of reforms to the provision of essential system services in the Northern Territory’s regulated electricity systems. Further stakeholder feedback will inform finalisation of the Design Development Team’s proposed design for consideration by government.

Get the review of essential system services draft position paper.

Review of essential system services draft position paper PDF (767.1 KB)
Review of essential system services draft position paper DOCX (843.1 KB)

Stakeholders were invited to make a submission on the draft position paper by 12 March 2021.

Supporting documents

GHD Advisory - Review of essential system services PDF (752.5 KB)
ACIL Allen Consulting - Review of essential system services PDF (817.8 KB)

Submissions

Draft position paper submissions were received from:

For an alternative copy of the submission documents, email electricityreform@nt.gov.au.

Consultation paper on the design of the capacity mechanism

The design of the capacity mechanism consultation paper sets out the Design Development Team’s proposed design of reforms to the arrangements for ensuring reliability in the Darwin‑Katherine system. Further stakeholder feedback will inform finalisation of the Design Development Team’s proposed design for consideration by government.

Get the design of the capacity mechanism consultation paper.

Design of the capacity mechanism consultation paper PDF (767.4 KB)
Design of the capacity mechanism consultation paper DOCX (786.1 KB)

Stakeholders were invited to make a submission on the consultation paper by 12 March 2021.

Submissions

Consultation paper submissions were received from:

For an alternative copy of the submission documents, email electricityreform@nt.gov.au.

Last updated: 30 March 2021

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