The Coordinator of Energy (Coordinator) has conducted a review of the Benchmark Capacity Providers that are used to determine the Peak and Flexible Benchmark Reserve Capacity Prices (BRCPs).
The Coordinator must determine the Benchmark Capacity Providers within six months of a revised Electricity Storage Resource Duration Requirement (ESRDR) being published in AEMO’s Electricity Statement of Opportunities (ESOO).
AEMO’s 2025 ESOO was published on 24 June and included an ESRDR of 6 hours, an increase from the previous ESRDR of 4 hours.
The Coordinator completed this review by the end of September 2025, to allow for the Economic Regulation Authority (ERA) to amend and consult on its BRCP methodology and the BRCPs for the 2028/29 Capacity Year.
The review included:
- The Benchmark Peak Capacity Provider
- The Benchmark Flexible Capacity Provider.
The following was assessed for both:
- Determining which technology represents the most efficient new entrant
- Whether gross costs of new entry (CONE) or net CONE should apply.
This Review was conducted in consultation with the Market Advisory Committee, WEM Investment Certainty Working Group and the Transformation Design and Operation Working Group.
At the 24 July 2025 meeting the MAC supported engaging the WICRWG to assist with the Coordinator’s review of the Benchmark Capacity Providers in the Reserve Capacity Mechanism.
On 29 August 2025, the Coordinator of Energy published their Consultation Paper on this Review, available below. It proposed reference technologies for the Benchmark Peak and Flexible Capacity Providers as well as the CONE approach to be applied. The consultation period closed on 19 September 2025.
On 30 September 2025, the Coordinator published the 2025 Determination of the Benchmark Capacity Providers.
In summary, the Coordinator has determined that:
- The Benchmark Peak Capacity Provider will be a lithium battery energy storage system with:
- 200 MW injection;
- 1200 MWh energy storage;
- a 330 kV connection at a location determined by the ERA
- The Benchmark Flexible Capacity Provider will be a lithium battery energy storage system:
- 200 MW injection;
- 1200 MWh energy storage;
- a 330 kV connection at a location determined by the ERA
- Benchmark Reserve Capacity Prices will be determined on a gross Cost of New Entry basis.
The Coordinator’s 2025 Determination allows the ERA to amend its BRCP Whole Electricity Market (WEM) Procedure and then determine and publish the BRCPs for the 2026 Reserve Capacity Cycle by 15 March 2026.
On 10 October 2025, the Coordinator published an Addendum to the 2025 Determination of the Benchmark Capacity Providers. The Addendum determines the network location to be used by the ERA in setting the Peak and Flexible BRCPs.
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