National Electricity Market

National Electricity Market

The National Electricity Market (NEM) operates across an interconnected power system. The interconnected regions largely follow the state boundaries of the participating jurisdictions including Queensland (Qld), New South Wales (NSW) and its Snowy Mountains (Hydro) region, Victoria (Vic), South Australia (SA) and Tasmania (TAS). The power grids of Western Australia (WA) and the Northern Territory (NT) operate independently.

The NEM first began operating across the eastern seaboard states of Australia in 1998, with Tasmania physically joining the market in 2005 through an unregulated interconnection with Victoria named Basslink. All other Australian interconnectors are operated as regulated links.

The NEM is administered by the Australian Energy Market Operator (AEMO). This market management role includes maintaining reserve requirements, coordinating dispatch of generation, and determining the spot price and financial settlement of the market.

ElectraNet joined the NEM at its inception in 1998 and we are the principal Transmission Network Service Provider (TNSP) – and System Control Operator – for South Australia’s high-voltage electricity transmission network.

For further detailed information on the National Electricity Market, please refer to AEMO’s guide –
An Introduction to Australia’s National Electricity Market.