Marginal Loss Factors: Financial Year 2024-25 - April 2024 - A report for the National Electricity

Observations and trends For the 2024-25 MLF study, the primary observation is the projected impact of thermal generation behaviour driven by variations in congestion, demand forecasts, and the continual addition of generation capacity in the form of solar and wind. [...] According to the current NEM design, the difference between the cost of electricity at a connection point remote from the RRN and the cost of electricity at the RRN is directly proportional to the MLF for the connection point. [...] Methodology, inputs, and assumptions This section outlines the principles underlying the MLF calculation, the load and generation data inputs AEMO obtains and uses for the calculation, and how AEMO checks the quality of this data. [...] The result is the second lowest MLF outcome; given the lowest MLF outcome is the battery load, the solar farm MLF outcome is the least favourable. [...] Congestion in the NEM is managed via constraints, constraints are effectively the tools which allow for representation of physical limits into the NEM dispatch engine (NEMDE) with the intent of ensuring the security and reliability of the power system is maintained at the lowest cost solution.