EXPLORE KNOWLEDGE BASE
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CERI Knowledge Base
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About the CERI knowledge base
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Introduction to Australia’s electricity markets
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Australian consumer insights
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CER technical and interoperability standards
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Connecting a customer to an electricity network
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Connecting a generator to a distribution network
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Utility interconnection (CSIP-AUS)
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Dynamic network export and generation control schemes
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Network load control schemes
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Network tariffs and network support services
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Participating in the National Electricity Market
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Participating in a frequency control market
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Participating in the RERT
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Participating in the Wholesale Electricity Market (Western Australia)
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Participating in the I-NTEM (NT)
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Cyber security and data privacy arrangements
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Consumer protection frameworks
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Participating in the Western Australian Electricity Market
Last Updated on 5 March 2026
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Western Australia’s electricity sector is unique within Australia, operating independently from the NEM and governed by its own market design, regulatory arrangements, and reform agenda. The state’s largest electricity network is the Southwest Interconnected System (SWIS), which supplies Perth and surrounding regions, serving over 1.1 million customers.
The SWIS is home to the Wholesale Electricity Market (WEM), which has undergone significant transformation in recent years. The WEM is governed under a state-based framework, with oversight provided by the Economic Regulation Authority (ERA) and Energy Policy WA (EPWA). Unlike the NEM, which is regulated by the AER and the AEMC, Western Australia’s market rules and reforms are developed locally, reflecting the state’s isolated grid and specific energy needs.
Key WEM participants include:
- Western Power: The state-owned transmission and distribution network operator. It plans, builds, operates, and maintains the SWIS network.
- Synergy: The state-owned retailer and generator. It is the dominant generator and sole retailer for small and residential customers (under 50 MWh). In its role as a parent aggregator, Synergy also plays a central role in CER orchestration and VPP program delivery.
- AEMO: As both system manager and market operator for the WEM, AEMO oversees system security, generation dispatch, and administration of the Reserve Capacity Mechanism (RCM) and ancillary service procurement.
- Private retailers and generators: A small number of private retailers and generators participate in contestable segments of the WEM. Retail contestability is restricted for residential and small business customers, with Synergy as the monopoly retailer. Large customers may choose alternative retailers, though Synergy retains a strong market share in the C&I sector.
Outside the SWIS, electricity is supplied by Horizon Power, which operates 38 separate systems, including 34 regional microgrids, serving over 47,000 households and businesses across the largest geographical area of any Australian electricity utility. These systems are vertically integrated, with Horizon Power owning and operating generation, networks and retail services for communities ranging from small towns to major mining operations.
This section provides a detailed exploration of the WEM and opportunities for CER participation, focusing on both its current operation and the evolving landscape shaped by ongoing reforms. It overviews the mechanisms that underpin market operation, such as the transition to a centrally dispatched net settlement market and the implementation of security-constrained economic dispatch. It explains how the Reserve Capacity Mechanism (RCM) ensures system reliability, introducing both peak capacity credits and flexible capacity credits to address the challenges of peak demand and renewable integration.
A significant portion is dedicated to the participation pathways for different customer segments. For residential and small customers, we detail Synergy’s central role in orchestrating CER and VPP programs, including the requirements for device integration, cybersecurity, and compliance. We also highlight flagship initiatives like Project Jupiter, which are shaping future standards and frameworks for CER participation and interoperability.
C&I participation options are explored, from direct market participation to aggregator-led models. This section discusses the technical and operational requirements for CER integration, the importance of Individual Reserve Capacity Requirement (IRCR) optimisation, and the opportunities presented by network support services and demand response.
The section concludes by examining future reforms, including the WA Government’s DER Roadmap, regulatory changes, and the anticipated evolution of market roles and consumer protections through to 2027.