CECcalls for changes in Australia’s »Marginal Loss Factor«

The Australian Clean Energy Council (CEC) urgently calls for a revision of the »marginal loss factor« (MLF), which is used to calculate the loss in value caused by generation plants and loads on the electricity grid. The Australian Energy Market Operator (AEMO) published the factors for 2019/20 on Friday. For many large wind and solar power plants, reductions of up to 20 percent - in some cases even more - had been set for the energy generated. Some plants were downgraded for the second time in a row.
In simplified terms, the correction factors reflect the ratio between the electricity produced and the electricity actually received by consumers. Normally, these losses are highest when a generation plant feeds into a less resilient grid far away from the regional consumption centres. This has a direct impact on the remuneration paid.
The CEC sees the current system as threatening the economic viability of many projects because the MLF reductions are not predictable for the operators. The Australian Energy Market Commission (AEMC) must review the rules immediately. The current method, established more than 20 years ago, is »no longer fit for purpose«. In the long term, however, investments in the increasingly overloaded networks would also be necessary.

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