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dc.contributor.authorSimshauser, Paul
dc.date.accessioned2021-07-29T03:53:24Z
dc.date.available2021-07-29T03:53:24Z
dc.date.issued2021
dc.identifier.issn0140-9883
dc.identifier.doi10.1016/j.eneco.2021.105446
dc.identifier.urihttp://hdl.handle.net/10072/406467
dc.description.abstractAustralia's National Electricity Market (NEM) operates in one of the world's longest and stringiest transmission networks. The 2016–2020 investment supercycle, in which 13,000 MW of renewables were committed, produced a series of adverse side-effects for various new entrants including connection lags, deteriorating system strength and associated remediation costs, and rising levels of generation curtailment. The NEM's Energy Security Board considered a key source of the problem to be market design and consequential geographic congestion of investments. This implies inadequate locational investment signals exist within the NEMs multi-zonal market design. However, diagnosis suggests NEM locational investment signals – which arise through a combination of site-specific Marginal Loss Factors and multi-zonal spot prices – remain visibly strong. Primary problems revealed through an analysis of the 2016–2020 period include policy discontinuity in prior periods. This in turn caused the supercycle, viz. multiple simultaneous entrants under asymmetric investment conditions. Above all, the supercycle revealed the NEM's rapidly diminishing network hosting capacity for new renewables. Markets participants are seeking to expand renewable capacity, and by implication transmission hosting capacity, faster than existing regulatory frameworks allow. A new policy proposal, known as ‘Renewable Energy Zones’ (REZ), represents a promising means by which to accelerate renewable hosting capacity. In this article, REZs are examined through both i). a consumer-funded regulatory model and ii). a renewable generator-funded market model. A ‘super-sized concessional mezzanine’ facility is presented as a critical element of REZ capital funding. It forms the means by which to optimise and accelerate market-based REZ transmission augmentation, and moderate sponsor risks of transient underutilisation.
dc.description.peerreviewedYes
dc.languageen
dc.publisherElsevier BV
dc.relation.ispartofpagefrom105446
dc.relation.ispartofjournalEnergy Economics
dc.relation.ispartofvolume101
dc.subject.fieldofresearchElectrical engineering
dc.subject.fieldofresearchEnvironmental engineering
dc.subject.fieldofresearchMechanical engineering
dc.subject.fieldofresearchcode4008
dc.subject.fieldofresearchcode4011
dc.subject.fieldofresearchcode4017
dc.titleRenewable Energy Zones in Australia's National Electricity Market
dc.typeJournal article
dc.type.descriptionC1 - Articles
dcterms.bibliographicCitationSimshauser, P, Renewable Energy Zones in Australia's National Electricity Market, Energy Economics, 2021, 101, pp. 105446
dcterms.licensehttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.date.updated2021-07-27T00:16:03Z
dc.description.versionAccepted Manuscript (AM)
gro.rights.copyright© 2021 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence (http://creativecommons.org/licenses/by-nc-nd/4.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.
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gro.griffith.authorSimshauser, Paul E.


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