The Northern Territory Government is implementing significant reforms in the wholesale electricity market to support an orderly and efficient transition to renewable energy.
The reforms will see a new Territory Electricity Market established with unique arrangements for wholesale electricity supply in the three regulated power systems – the Darwin-Katherine electricity system, Alice Springs and Tennant Creek electricity systems. The Territory Electricity Market arrangements will incentivise investment in renewable generation technologies while ensuring electricity supply remains reliable and energy cost remains affordable for Northern Territory households and businesses.
The Territory Electricity Market is designed to create a centralised approach within each regulated electricity system for determining and procuring generation resources at lowest cost. The TEM seeks to meet the evolving energy needs of Northern Territory through a fit-for-purpose market design that recognises the characteristics of each regulated power system.
This centralised approach reduces the investment risks that are becoming critical stumbling blocks in energy markets transitioning to higher levels of renewable energy supply. This new approach seeks to address many of the fundamental challenges that wholesale energy markets around the world are facing in terms of attracting generation investment, accommodating new technologies and providing adequate levels of essential system services to maintain secure and reliable power systems.
The implementation of the Territory Electricity Market will be overseen by a special Electricity Market Reform Implementation Taskforce (EMRIT) established by the Northern Territory Government. This taskforce is chaired by Mr Alistair Trier, CEO of Department of Mining and Energy and members include the Under Treasurer, Mr Tim McManus and an independent electricity sector expert, Mr Steve Edwell.
For more information on the Territory Electricity Market implementation, visit the Department of Mining and Energy website.
Design Development TeamNorthern Territory Electricity Market Priority Reform ProgramDepartment of Treasury and Finance and Department of Industry, Tourism and TradeTerritoryElectricityMarket.DITT@nt.gov.au.