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A CASE STUDY ON
AUSTRALIAN NEM MARKET SUSPENSION
TALK OF THE TOWN

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QUESTIONS TO BE ANSWERED

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 QUESTIONS TO BE ANSWERED

Why WEM was not suspended?

What are the main reasons for

suspension & Can it occur in CTBCM

Does privatization always results in

disaster?

a.Compare & Contrast research

b.Analyze Pakistan market VS NEM

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 Why WEM was not suspended?

• Energy & Capacity Market • Energy & Ancillary Service Market

• Energy supply= 18 TWh • Energy supply= 200 TWh
• Consumers= 1 million • Consumers= 9 million
• Generating Capacity= 5798 MW • Generating Capacity= 54421 MW
• Trade= $500 million • Trade= $16.6 billion
• Transmission Line = 7,800km • Transmission Line = 40,000km

SECURITY OF SUPPLY=
CAPACITY OBLIGATION

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What are the main reasons for
suspension & Can it occur in CTBCM

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 What are the main reasons for
suspension & Can it occur in CTBCM
• Coal & Gas price hike due to Russia-Ukraine War
• Planned & Unplanned Outages
• Early Onset of Peak demand Season
• Forcefully restricted the price cap $A300/MWh (Trust deficit)
• Forced load shedding
• This situation won’t happen in CTBCM because
CTBCM NEM
Cost based Gross Pool Price based Gross Pool
Long term Legacy contracts No long term contracts
Capacity Obligation No Capacity Obligation
CS can’t charge above regulated price No such restrictions
Bilateral Contract with imbalance spot market 5 minutes dynamic pricing spot market
Market in initial stage (less risk exposure) Market in Advanced stage (more risk exposure) 7
What are the main reasons for
suspension & Can it occur in CTBCM

FUEL TYPE

7% 0% COAL
4% GAS
7% WIND
HYDRO
GRID SCALE SOLAR
10% DISTRIBUTED PV
BATTERY ENERGY STORAGE
BIOMASS
7% 65%

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Does privatization always results in
disaster?

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 Does privatization always results in
disaster?
NOT NECESSARILY….It all depends on
 Culture
Political Environment
Terms & Conditions on which Privatization is done

Examples are Scandinavian Countries

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a.Compare & Contrast research
b.Analyze Pakistan market VS NEM

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 a.Compare & Contrast research
b.Analyze Pakistan market VS NEM
• California Electricity Crisis
• Nigeria Electricity Market Failure
• AEMO

Pakistan’s current Electricity Market NEM

Single buyer Market Whole Sale Market
Long term Legacy contracts No long term contracts
Product: Energy & capacity Product: Energy & Ancillary
NTDC (SO & TNO) and CPPA ISO Model
Cost based market Price based market

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