AEMC issues draft rule change calling for Centralized Negawatt Dispatch Mechanism

Don’t have much time today to elaborate on this, but worth noting that the AEMC today (Thu 18th July) released a draft determination for the implementation of a Centralized Negawatt Dispatch Mechanism, which will mean that Negawatts are treated as a supply-side option in the NEMDE dispatch process.

1) The main AEMC page is here today.

2) The three rule change proposals were discussed here.

Given the concerns we’d previously noted on WattClarity® about such a move, it’s with mixed feelings that we see this move:

1) Given the nature of discussion about the move in various quarters, it had seemed likely that such a decision would be made.

2) As noted before on various occasions (like here), our business will grow as a result of the new avenues for service that will open up, and we will help our energy user clients earn more revenue directly from the centralized dispatch of their Negawatts;

3)  However this upside is mixed with our sense that this change is unlikely to be in the long-term interests of the market (especially energy users), or meet the real underlying challenges of the energy transition.

4)  However we realise that we need to be pragmatic, and help our clients make better decisions within the framework of the rules that are in place (even if we think those rules are flawed).

4a)  Hence, once the final rule is passed, we’ll start the implementation of plans drawn up for such an occasion.

4b)  At that point, we’ll be happy to hear more from energy users who we can help in an additional way.  Just another step along our journey in facilitating Demand Response.

Here’s the AEMC media release that accompanies “Leveraging the power of demand to help reduce wholesale power prices”.

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