Reform: Northern Territory Electricity Market Priority Reform Program

The Northern Territory Electricity Market Priority Reform Program has been replaced by the Territory Electricity Market reform.

The Northern Territory Electricity Market Priority Reform Program commenced in June 2020, with the objectives of:

  • 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.

As the Northern Territory Priority Reform Program evolved in design of various critical aspects, the Northern Territory Government in 2022 sought a comprehensive policy direction review by the Department of Mining and Energy. This review paved the way for the transition to the TEM, a reform designed to support an orderly and efficient transition to renewable energy while ensuring a secure, reliable and affordable energy future for consumers.

Previous consultation and draft policy papers published as part of the Northern Territory Electricity Market Priority Reform Program can be accessed below.

Previous papers on priority reform program policy development

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.

The Northern Territory electricity supply industry is undergoing a significant transition and reform is required to facilitate increased market entrants and emerging technologies.

Implementing these reforms will require amendments to the system control technical code and the network technical code and planning criteria made under the Electricity Reform Act 2000.

To ensure regulatory changes can be made in a timely, transparent and accountable manner, the Northern Territory Government is introducing a temporary power for the minister to amend the technical codes to directly implement strategic energy policy reforms.

For more information on the ministerial code-making power, read the information paper.

Introduction of a ministerial code-making power information paper PDF (155.1 KB)
Introduction of a ministerial code-making power information paper DOCX (58.8 KB)

Give feedback about this page.

Share this page:

URL copied!