Inefficient Congestion Investment Decisions
Definition
Without granular pricing like CMM/LMP, investments ignore congestion risks, leading to excess infrastructure needs and wasted capital on inefficient generator queues.
Key Findings
- Financial Impact: AUD 500M-1B in deferred/avoidable transmission upgrades; congestion rents (CP x MW) unrecovered
- Frequency: Ongoing; major reviews highlight need for reform to support efficient investment
- Root Cause: Current clamping/preference mechanisms distort dispatch; no financial hedge like TCRs for all participants
Why This Matters
The Pitch: Transmission operators in Australia 🇦🇺 overspend AUD 1B+ on avoidable infrastructure due to poor congestion signals. Automated priority access queues optimize siting.
Affected Stakeholders
TNSPs, New generators, Investors
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Transmission Congestion Capacity Loss
Congestion Pricing Mis-pricing Revenue Leak
Incident Response Remediation Costs
Operational Downtime from Cyber Events
Capacity Loss from Failed Demand Response Events
Delayed Verification and Payment Drag in DR Administration
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