On 8 October 2018, the Northern Territory Government announced electricity market reforms to deliver lower cost and reliable power, and meet the Northern Territory Government’s target of its 50 percent renewables by 2030.
The Department of Treasury and Finance is currently undertaking the following consultations to support electricity market reform.
On 7 February 2019, the Department of Treasury and Finance (DTF) released the Northern Territory Electricity Market (NTEM) Consultation Draft Functional Specification for consultation with stakeholders.
The NTEM Functional Specification will outline how each of the functional components of the proposed market arrangements will operate and interact with each other. The Functional Specification is planned to be the primary reference document for the detailed design and implementation of arrangements to manage reliability and security of supply, trading and dispatch activities, metering and settlement and how the NTEM is to support the Territory Government’s renewable energy target.
Reliability in power system planning refers to having sufficient generation and network capacity and demand management to meet the electricity needs of consumers with a high degree of confidence. Generation reliability, which is the focus of the consultation paper, is whether sufficient generation capacity has been built and is available for service to meet the energy demands of consumers; acknowledging however, that there is a balance between having sufficient generation available to meet electricity needs in most instances and keeping costs as low as possible for end-users.
On 31 January 2019, the Department of Treasury and Finance (DTF) released a Consultation Paper on the form of reliability standards for the regulated power systems (Darwin‑Katherine, Alice Springs and Tennant Creek).