Australian National Electricity Market (NEM)

Click here for a NEMMCO introduction to the NEM

 The National Electricity Market (NEM) covers Queensland, New South Wales, Australian Capital Territory, Victoria, Tasmania and South Australia; it is the world’s longest interconnected power system stretching from Port Douglas in Queensland to Port Arthur in Tasmania.  

 The NEM is an ‘energy’ market in contrast to the Western Australian Energy Market (WEM) ‘capacity’ market.  The NEM structure provides little opportunity for customer’s to be compensated for demand reduction. 

The NEM operates with supply side inefficiencies and which has a negative effect on:

·      wholesale prices peaks

·    stressed networks

·    reserve limitations 

Energy Response provides a mechanism for electricity end users (consumers) to respond to these inefficiencies by paying them to curtail demand at the appropriate time. 

Energy Response’s programs are considered imperative for greenhouse gas abatement and to lower the cost of electricity, thereby improving the international competitiveness of Australia’s industries and ultimately the retention of jobs for future generations.