Modelling the settlement effects of Project Energy Connect

AEMO engaged ACIL Allen team to model the integration of Project EnergyConnect and advise on dispatch and settlement outcomes, including quantifying negative interregional settlement residues (IRSRs).

Project EnergyConnect will establish a transmission loop across interconnectors between VIC, NSW, and SA. 

Our modelling indicates that the loop is expected to result in regular counter price flows which will increase the occurrence of negative IRSR on one or two legs of the loop. Under the current rules, this would significantly increase network fees for consumers in the importing regions. To address this issue, we advised on several approaches to reallocate negative IRSR.

Our report and AEMO’s direction paper have been published here for stakeholder consultation - https://aemo.com.au/en/consultations/current-and-closed-consultations/project-energy-connect-market-integration-paper