product, and that these would be taken to public consultation. 3.2 Discussion on The discussed papers the approach from the European Commission and the Brattle used in the EU Group regarding international experiences with introducing capacity trading and use-it-or-lose-it auction capacity that were circulated for pre-reading. The group discussed the papers, expressing mixed views, including: The papers were an interesting read and refresher. Concerns of going backwards in the reform: it is not the task of the group to revisit the rationale for the AEMC recommendations. One member argued whether the trading in the EU was creating value or just volume, based on conversations with EU traders. Discussed the different regulatory regime and political environment in the EU to facilitate market disruption. Commented on the relevant learnings that could be taken from the international experiences in dealing with issues such as renomination rights and stress testing ideas. 4 Break N/A N/A N/A 5 Interaction with the facilitated markets Nic Pope (AEMO) presented on GMRG to circulate 5.1 How the auction product will how the auction product could presentation slides. interact with the interact with the STTM and GMRG to add to STTM, DWGM DWGM markets, including key parking lot: times for the auction for each, and the group discussed: How accreditation in the DWGM will Whether the new proposed be impacted by streamlined STTM balancing the auction markets (as proposed by the product. AEMC in the East Coast Review), and changes to the STTM: do DWGM should be taken into balancing services account. The group (eg. overruns and considered this should be imbalances) move
product, and that these would be taken to public consultation. 3.2 Discussion on the approach used in the EU The discussed papers from the European Commission and the Brattle Group regarding international experiences with introducing capacity trading and use-it-or-lose-it auction capacity that were circulated for pre-reading. The group discussed the papers, expressing mixed views, including: The papers were an interesting read and refresher. Concerns of going backwards in the reform: it is not the task of the group to revisit the rationale for the AEMC recommendations. One member argued whether the trading in the EU was creating value or just volume, based on conversations with EU traders. Discussed the different regulatory regime and political environment in the EU to facilitate market disruption. Commented on the relevant learnings that could be taken from the international experiences in dealing with issues such as renomination rights and stress testing ideas. 4 Break N/A N/A N/A 5 Interaction with the facilitated markets 5.1 How the auction product will interact with the STTM, DWGM Nic Pope (AEMO) presented on how the auction product could interact with the STTM and DWGM markets, including key times for the auction for each, and the group discussed: Whether the new proposed streamlined STTM balancing markets (as proposed by the AEMC in the East Coast Review), and changes to the DWGM should be taken into account. The group considered this should be GMRG to circulate presentation slides. GMRG to add to parking lot: How accreditation in the DWGM will be impacted by the auction product. STTM: do balancing services (eg. overruns and imbalances) move