AGL’s submission on the consultation paper for South Australia’s Firm Energy Reliability Mechanism

AGL has made a submission on the South Australian Firm Energy Reliability Mechanism Proposed Scheme Design Consultation Paper. The submission notes that current market settings do not appropriately value the role long duration firm capacity plays in the provision of both energy and non-energy services which strengthen both system security and reliability. As a result, existing assets are regularly faced with revenue streams that fall short of the value and the costs of providing these essential services. Understandably, these market outcomes do not make a strong business case for investing in new long duration firm capacity. AGL states South Australia’s development of the mechanism is a considered policy response to these risks. The submission also provides some feedback on some of the more detailed aspects of the design.

Read the full submission here.