- 11,326
- 8,750
I tried to a bit of research to answer the ICAP question in AU. It was inconclusive. I did find this.
- https://www.wa.gov.au/organisation/energy-policy-wa
The market design is done by the government, not industry. The markets I know best, are governed by "participants". That includes generator owners, transmission owners, retail utilities, consumer advocates, environmental advocates, industrial consumers, government regulators, blah blah. They design the markets and make all the rules, but they need approval from government. They mandate that the system operator maintain a market design department staffed by engineers. Engineers design, then submit the designs for approval of the stakeholders, who submit them for approval by government. Disputes wind up in court. I worked for the system operator in NY. $16B of other people's money passed through our hands every year, so as you might expect we had a lot of scrutiny. - I found that there is a natural gas capacity market at aemo, but no mention of an equivalent market for electricity.
- It could be semantics. The AU energy operator, https://www.aemo.com.au/, talks about electric reserves, but not capacity. Reserves and capacity are closely related but not identical. Other markets have separate auctions for capacity and for reserves.