Generator Optional Firm Access rights — AEMC announces terms of reference for detailed design work
On 6 March 2014, the Australian Energy Market Commission (AEMC) released terms of reference to progress work on the Optional Firm Access (OFA) framework initially outlined in the Transmission Frameworks Review published in April 2013. If adopted, OFA would fundamentally alter the operation of the National Electricity Market (NEM). In this update, DLA Piper briefly examines:
- Timeline including the next steps
- Potential benefits of OFA?
- How might OFA work?
- A practical example
- Key implications
- Key questions
Potential benefits for the NEM include more efficient investment in new transmission through co-optimisation of the costs of transmission and generation. OFA should assist generators and transmission network service providers (TNSPs) to co-optimise their investments. The purchase of firm rights by generators would provide a signal to TNSPs as to where additional transmission investment is necessary. The importance of co-optimising generation and transmission investment will take on greater importance if the trend toward new generation being renewable continues. However, new transmission investment would still be dependent upon passing the RIT-T and the ability of the TNSP to receive adequate compensation through its revenue regulation…
Click on the link below to read the rest of the DLA Piper briefing.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
India recently staged the largest free democratic election in world history, bringing to power the National Democratic Alliance, and with it a fresh sense of optimism.
Life Sciences Spotlight: Chinese regulatory enforcement action not slowing down; patent strategies and loyalty discounts; and more
DLA Piper has released the fourth edition of Life Sciences Spotlight, which discusses developments in the sector across the Asia-Pacific region.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions