Tata Consultancy Services (TCS) has informed that it has helped Australian Energy Market Operator (AEMO) to design and implement a solution that powers the Five-Minute Settlement (5MS) Program, creating a more efficient energy market in the country.
AEMO manages all electricity and gas systems and markets; responsible for the settlement of the National Electricity Market in Australia which connects the grids of eastern and southern Australian states to create a wholesale energy market.
Previously, AEMO has only been able to settle the market in 30-minute blocks, limited by its ability to segment the data. This created an inefficient pricing outcome and was identified as a contributing factor to disorderly bidding, TCS said in a news statement.
TCS worked with AEMO to design and deliver a cloud-based platform-, leveraging DevOps, automated testing, and agile practices. The intelligent platform provides data ingestion, calculation, and reporting capabilities. It auto-scales to manage increasing data volumes, with 20.5 million daily meter reads expected by 2025 and 2 trillion data points by 2028, with minimal intervention.
In addition, the solution provides APIs to connect all market participant systems to assure the integrity of market settlement while enabling future opportunities for AEMO to further introduce automation through artificial intelligence and machine learning.
The move to 5MS was one of the smoothest transitions onto a new operating regime that Australian market participants have experienced. The platform has been operating without any disruptions to the energy market, setting the implementation benchmark for future market changes.
Over 10 million customers across Queensland, New South Wales, Australian Capital Territory, Victoria, Tasmania and South Australia have already benefitted from this initiative. This program also lays the foundation for upcoming energy market reforms and accelerates the ESG and Net Zero initiatives in Australia.
“The implementation of 5MS, WDR and customer switching has created better outcomes for market participants, consumers and a more efficient energy sector in Australia. As one of the most significant reforms since the NEM’s inception in 1998, 5MS provides better price signal for investment in fast (electricity generation and demand side) response and flexible technologies,” said Daniel Westerman, CEO of AEMO.