Benchmark Reserve Capacity Price
The Benchmark Reserve Capacity Price (BRCP) is used in the calculation of the maximum price that may be offered in a Reserve Capacity Auction, or as an input in the calculation of the administered Reserve Capacity Price if an auction is not required. Each year, AEMO is required to determine the BRCP in accordance with the Market Procedure: Maximum Reserve Capacity Price.
The BRCP aims to establish the marginal cost of providing additional reserve capacity in each Capacity Year. The BRCP is calculated by undertaking a technical, bottom-up cost evaluation of the entry of a 160 MW open-cycle gas turbine generation facility in the South West interconnected System in the relevant Capacity Year.
The steps AEMO follows to complete the annual review of the BRCP are:
- Calculate the draft value of the BRCP and publish the results in a draft report.
- Request public submissions on the draft report.
- Assess public submissions and adjust the BRCP if appropriate.
- Submit the final value of the BRCP in a final report to the Economic Regulation Authority (ERA) for approval.
- Publish the final report once it has been approved by the ERA.
For the 2021 Reserve Capacity Cycle (which covers the 2023-24 Capacity Year), AEMO proposed a value of $151,700 per MW per year. The ERA approved this value on 29 January 2021. For more information on the 2021 BRCP, please see below
Historical Benchmark Reserve Capacity Prices
The BRCP was set at $150,000 per MW per year for the first Reserve Capacity Cycle, applying from market start to 1 October 2008. The figure below shows the breakdown of the cost components of the BRCP for the 2008–09 to 2023–24 Capacity Year.
The table below shows the BRCP and Reserve Capacity Price for each Capacity Year since market start. The Reserve Capacity Price is paid by AEMO for Capacity Credits not traded between Market Participants.
Capacity Year | BRCP ($ per MW per year) | Reserve Capacity Price ($ per MW per year) |
2023-24 | $151,700 | |
2022-23 | $141,900 | $85,294 |
2021-22 | $154,200 | $78,573 |
2020-21 | $153,600 | $114,134.15 |
2019–20 | $149,800 | $126,683.47 |
2018–19 | $159,800 | $138,760.39 |
2017–18 | $164,800 | $111,752.53 |
2016–17 | $176,800 | $121,888.94 |
2015–16 | $157,000 | $120,199.31 |
2014–15 | $163,900 | $122,427.87 |
2013–14 | $240,600 | $178,476.69 |
2012–13 | $238,500 | $186,001.04 |
2011–12 | $164,100 | $131,804.58 |
2010–11 | $173,400 | $144,235.38 |
2009–10 | $142,200 | $108,458.57 |
2008–09 | $122,500 | $97,834.89 |
2007–08 | $150,000 | $127,500.00 |
2006–07 | $150,000 | $127,500.00 |
2005–06 | $150,000 | $127,500.00 |
2021 Benchmark Reserve Capacity Price
The BRCP for the 2021 Reserve Capacity Cycle is $151,700 per MW per year and will be effective for the 2023-24 Capacity Year, which starts on 1 October 2023 and ends on 1 October 2024.
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Related documents
Applicable documents
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29/01/2021
ERA decision on the 2023-24 Benchmark Reserve Capacity Price Proposal
118.96 KB -
29/01/2021
GHD: 2021 Benchmark Reserve Capacity Price Power Station Costs
1.13 MB -
29/01/2021
Landgate: Land values for the 2021 Benchmark Reserve Capacity Price
276.58 KB -
29/01/2021
Western Power: Total Transmission Cost Estimate for the 2021 Benchmark Reserve Capacity Price
540.55 KB -
29/01/2021
PwC: Cost Escalation Factors for the 2021 Benchmark Reserve Capacity Price
588.12 KB -
29/01/2021
PwC: 2021 Benchmark Reserve Capacity Price Debt Risk Premium for the South West Interconnected System (October 2020)
293.01 KB -
29/01/2021
PwC: 2021 Benchmark Reserve Capacity Price Debt Risk Premium for the South West Interconnected System (November 2020)
305.44 KB
Submissions received during the public consultation period
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2020 Benchmark Reserve Capacity Price
The BRCP for the 2020 Reserve Capacity Cycle is $141,900 per MW per year and will be effective for the 2022-23 Capacity Year, which starts on 1 October 2022 and ends on 1 October 2023.
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Related documents
Final report
- Final report: Benchmark Reserve Capacity Price for the 2022-23 Capacity Year (590 KB, pdf)
- 2020 BRCP calculation spreadsheet (final report version) (76 KB, xlsx)
Draft report
- Draft report: Benchmark Reserve Capacity Price for the 2022-23 Capacity Year (572 KB, pdf)
- 2020 BRCP calculation spreadsheet (draft report version) (76 KB, xlsx)
Applicable documents
- ERA decision on the 2022-23 Benchmark Reserve Capacity Price Proposal (141 KB, pdf)
- GHD: 2020 Benchmark Reserve Capacity Price for the SWIS (final) (825 KB, pdf)
- GHD: 2020 Benchmark Reserve Capacity Price for the SWIS (760 KB, pdf)
- Landgate: Land values for the 2020 Benchmark Reserve Capacity Price (216 KB, pdf)
- PwC memo: 2020 Benchmark Reserve Capacity Price Debt Risk Premium for the South West Interconnected System (November 2019) (254 KB, pdf)
- PwC memo: 2020 Benchmark Reserve Capacity Price Debt Risk Premium for the South West Interconnected System (August 2019) (276 KB, pdf)
- PwC report: Escalation Factors - 2020 Benchmark Reserve Capacity Price (August 2019) (660 KB, pdf)
- Weighted Average Cost of Capital (WACC) parameter calculation spreadsheet for the final report (81 KB, xlsx)
- Weighted Average Cost of Capital (WACC) parameter calculation spreadsheet for the draft report (84 KB, xlsx)
- Western Power: Total transmission cost estimate for the 2020 Benchmark Reserve Capacity Price (392 KB, pdf)
Submissions received during the public consultation period
- Alinta Energy (170 KB, pdf)
2019 Benchmark Reserve Capacity Price
The BRCP for the 2019 Reserve Capacity Cycle is $154,200 and will be effective for the 2021-22 Capacity Year, which starts on 1 October 2021 and ends on 1 October 2022.
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Related documents
Final report
- Final report: Benchmark Reserve Capacity Price for the 2021-22 Capacity Year (520 KB, pdf)
- 2019 BRCP calculation spreadsheet (final report version) (80 KB, xlsx)
Draft report
- Draft report: Benchmark Reserve Capacity Price for the 2021-22 Capacity Year (644 KB, pdf)
- 2019 BRCP calculation spreadsheet (draft report version) (76 KB, xlsx)
Applicable documents
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GHD 2021-22 Benchmark Reserve Capacity Price for the SWIS (762 KB, pdf)
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Landgate - Land values for the 2021-2022 Capacity Year (217 KB, pdf)
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PwC memo: 2019 Benchmark Reserve Capacity Price Debt Risk Premium for the South West Interconnected System (September 2018) (556 KB, pdf)
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PwC memo: 2019 Benchmark Reserve Capacity Price Debt Risk Premium for the South West Interconnected System (November 2018) (568 KB, pdf)
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PwC report: Estimating the Escalation Factors for the 2019 Benchmark Reserve Capacity Price (August 2018) (478 KB, pdf)
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Weighted Average Cost of Capital (WACC) parameter calculation spreadsheet for the draft report (72 KB, xlsx)
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Weighted Average Cost of Capital (WACC) parameter calculation spreadsheet for the final report (80 KB, xlsx)
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Western Power total transmission cost estimates for the BRCP for the 2021-22 Capacity Year (694 KB, pdf)
Submissions received during public consultation period
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Perth Energy (592 KB, pdf)
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Merredin Energy (443 KB, pdf)
2018 Benchmark Reserve Capacity Price
The BRCP for the 2018 Reserve Capacity Cycle will be effective for the 2020-21 Capacity Year, which starts on 1 October 2020 and ends on 1 October 2021.
AEMO proposed a final value of $153,600 per MW per year to the Economic Regulation Authority (ERA).
This value was approved by the ERA on 29 January 2018 in accordance with clause 2.26 of the Wholesale Electricity Market Rules
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Related documents
Final report
- Final report: Benchmark Reserve Capacity Price for the 2020-21 Capacity Year (1.3 MB, pdf)
- BRCP calculation spreadsheet (final report version) (75 KB, xlsx)
Draft Report
- Draft report: Benchmark Reserve Capacity Price for the 2020-21 Capacity Year (1.0 MB, pdf)
- BRCP calculation spreadsheet (draft report version) (75 KB, xlsx)
Applicable documents
- ERA decision on the 2020-21 Benchmark Reserve Capacity Price Proposal (1.32MB, pdf)
- GHD 2020-21 Benchmark Reserve Capacity Price for the SWIS (2.3 MB, pdf)
- Landgate - Land values for the 2020-2021 Capacity Year (274 KB, pdf)
- PwC Estimated debt risk premium (dated 24 November 2017) (573 KB, pdf)
- PwC Estimated debt risk premium (dated 6 October 2017) (447 KB, pdf)
- WACC parameter calculation spreadsheet for the final report (73 KB, xlsx)
- WACC parameter calculation spreadsheet for the draft report (72 KB, xlsx)
- Western Power Total transmission cost estimates for the BRCP for the 2020-21 Capacity Year (1.5 MB, pdf)
Submissions received during public consultation period
- Perth Energy (592 KB, pdf)
2017 Benchmark Reserve Capacity Price
For the 2019–20 Capacity Year, a BRCP of $149,800 per MW per year was proposed by AEMO.
The ERA approved this value in accordance with clause 2.26 of the Market Rules. The BRCP of $149,800 per MW per year will be effective from 1 October 2019 to 1 October 2020.
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Related documents
Final report
Final report: Benchmark Reserve Capacity Price for the 2019-20 Capacity Year [1.0 MB]
BRCP calculation spreadsheet (final report version) [63 KB]
Draft report
Draft report: Benchmark Reserve Capacity Price for the 2019-20 Capacity Year [1.1 MB]
BRCP calculation spreadsheet (draft report version) [63 KB]
Applicable documents
ERA decision on the 2019-20 Maximum Reserve Capacity Price Proposal [384 kB]
GHD 2019-20 Benchmark Reserve Capacity Price for the SWIS [648 KB]
Landgate - Land values for the 2019-2020 Capacity Year [266 KB]
PwC Estimated debt risk premium (dated 5 December 2016) [181 KB]
PwC Estimated debt risk premium (dated 25 October 2016) [167 KB]
WACC parameter calculation spreadsheet for the final report [18 KB]
WACC parameter calculation spreadsheet for the draft report [20 KB]
Western Power Total transmission cost estimates for the BRCP for the 2019-20 Capacity Year [3.7 MB]
Submissions received during public consultation period
Perth Energy [473 KB]
Tesla [1.8 MB]
Previous Benchmark Reserve Capacity Prices (before 2017)
BRCP determinations made before 2017 can be found here.
Five-yearly methodology review
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Related Information
The Economic Regulation Authority is required to review the Market Procedure: Maximum Reserve Capacity Price at least once every five years (clause 4.16.9 of the Market Rules). This review was last completed in 2011 by the Maximum Reserve Capacity Price Working Group.
As a result of the last review, the IMO developed a Procedure Change Proposal to amend the Market Procedure. The amended Market Procedure commenced in October 2011. The Procedure Change Proposal and related documents can be found here.