Tata Consultancy Services (TCS) announced it has helped Australian Energy Market Operator (AEMO), design and implement a futuristic solution that powers the Five Minute Settlement (5MS) Program, creating a more efficient energy market in the country with better outcomes for energy producers, distributors and consumers.
AEMO is an independent organisation that manages all electricity and gas systems and markets across Australia; responsible for the settlement of the National Electricity Market which connects the grids of eastern and southern Australian states to create a wholesale energy market.
To address these inequities, the 5MS rule change was introduced, shifting the current 30-minute wholesale electricity spot market settlement period to five-minutes, thereby providing a better price signal for investment in faster response technologies, such as batteries and gas peaking generators. It will also enable more efficient bidding, operational decisions, and investments, aligned to dispatch and financial settlement periods, according to the statement.
The move to 5MS was one of the smoothest transitions onto a new operating regime that Australian market participants have experienced. The platform has been operating without any disruptions to the energy market, setting the implementation benchmark for future market changes.
“The successful implementation of 5MS, WDR and customer switching has created better outcomes for market participants, consumers and a more efficient energy sector in Australia. As one of the most significant reforms since the NEM’s inception in 1998, 5MS provides better price signal for investment in fast (electricity generation and demand side) response and flexible technologies,” said Daniel Westerman, CEO, AEMO.
“We are honoured to build on our long-standing relationship with AEMO to work together on this first-of-its kind market-transforming program. TCS’ domain knowledge, technology expertise, and investments in research and innovation, make us the preferred partner for such industry transformations. In addition to enabling access to affordable, secure, and reliable energy, the 5MS program lays the foundation for further innovation in Australia’s energy market, while providing a roadmap to other energy markets across the world,” said Girish Ramachandran, President, TCS Asia Pacific.
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