 From 30- to 5-minute settlement rule in the NEM: An early evaluationMuthe Mathias Mwampashi, Christina Sklibosios Nikitopoulos and Alan Rai Energy Policy, 2024, vol. 194, issue C Abstract: Australia’s National Electricity Market has shifted from 30- to 5-minute settlement (5MS)— a major regulatory reform since its inception. Using a Bayesian structural time-series model over the period 1 October 2021 to 31 May 2022, we demonstrate that despite having no immediate impact on price dynamics, 5MS eventually exerts upward pressure on spot prices over time. Price volatility remains essentially unchanged. Moreover, dispatch-weighted prices (DWPs) for flexible battery generators increase. DWPs for aggregated gas generators barely change, while DWPs for incumbent black coal-fired generators unexpectedly increase. These findings support the notion that the market is gradually adapting to 5MS. For a more effective adaptation, energy policies must be in place to lower entry barriers for flexible, dispatchable generation capacity and reduce market concentrations. Keywords: Electricity spot price; 5-minute settlement; Dispatch-weighted price; Bayesian structural time series model; Regulatory change (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:194:y:2024:i:c:s0301421524003252 DOI: 10.1016/j.enpol.2024.114305 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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