EXPLORE KNOWLEDGE BASE
-
CERI Knowledge Base
-
About the CERI knowledge base
-
Introduction to Australia’s electricity markets
-
Australian consumer insights
-
CER technical and interoperability standards
-
Connecting a customer to an electricity network
-
Connecting a generator to a distribution network
-
Utility interconnection (CSIP-AUS)
-
Dynamic network export and generation control schemes
-
Network load control schemes
-
Network tariffs and network support services
-
Participating in the National Electricity Market
-
Participating in a frequency control market
-
Participating in the RERT
-
Participating in the Wholesale Electricity Market (Western Australia)
-
Participating in the I-NTEM (NT)
-
Cyber security and data privacy arrangements
-
Consumer protection frameworks
-
Participating in the National Electricity Market
Last Updated on 5 March 2026
SUGGEST AN EDIT
LIKE THIS PAGE?
This section provides an overview of how participation in the NEM is evolving as Australia transitions toward a high-CER, high-renewables electricity system.
The NEM supplies around 90% of Australia’s population and operates across five interconnected regions:
- Queensland (QLD)
- New South Wales (NSW), including the ACT
- Victoria (VIC)
- South Australia (SA)
- Tasmania (TAS)
The NEM is an “energy-only” and “gross-pool” market, meaning all electricity is traded through AEMOs central dispatch and settlement systems, with no separate capacity market or bilateral energy trading. Prices vary dynamically throughout the day and can range from the market floor price (−$1,000/MWh) to the market price cap (rising to $21,700/MWh from July 2026). These settings contribute to increasingly pronounced diurnal pricing patterns and high volatility, conditions that create both challenges and opportunities for CER that operate with an electricity spot market exposure.
Every electricity customer in the NEM is represented by a Financially Responsible Market Participant (FRMP), typically an electricity retailer, who is responsible for purchasing wholesale energy and managing associated market financial risks. While most customers participate indirectly under a retail tariff, the NEM provides a growing range of pathways that allow CER to participate more directly in spot markets, ancillary services and other market mechanisms. These include participation via IRPs, DRSPs, and retailer-led orchestration programs.
The NEM is undergoing a major structural transformation. The rapid expansion of wind and solar, coupled with a declining pool of synchronous generators, is increasing the need for fast, flexible resources capable of supporting power system security, while reducing market prices. Current market reforms, including AEMO initiatives to improve CER visibility in central dispatch, and broader review processes, are examining how CER can integrate more seamlessly into operational decision-making and participate more directly in price formation.