What is the NCESS Framework?
Instead of building costly new infrastructure ("poles and wires"), Western Power procures Network Support Services (NSS) to manage localized constraints. This approach is formally contracted under the Non-Co-optimised Essential System Services (NCESS) framework.
AEMO vs Western Power NCESS
In the SWIS, the NCESS framework is used by two distinct entities for differing reasons:
AEMO (Market Operator)
Uses NCESS for system-wide power security or reliability needs not met by the standard Wholesale Electricity Market (WEM) mechanisms (e.g., managing the retirement of a major coal plant or minimum demand risks).
Western Power (Network Operator)
Uses NCESS for localized, feeder-level constraints (e.g., a specific substation is overloaded in January due to extreme heat or peak load). This is where our primary opportunity lies.
The "Double Dip" Revenue Model
Your primary revenue stream is AEMO Capacity Credits. Securing an NCESS Network Support Contract allows you to "double dip" optimally.
Revenue Stream 1: AEMO Capacity Credits
Your primary, highly predictable revenue stream.
- Mechanism: Paid to ensure your plant is available to dispatch power during peak grid stress.
- Provider: AEMO (via the WEM).
- Value: Highly regulated and transparent Pricing. E.g., ~$231,000/MW.
Revenue Stream 2: WP NCESS Dispatch Payments
Your secondary, highly lucrative asset utilization stream.
- Mechanism: Peak localized network constraint alleviation. Paid when your plant is actually dispatched to support the feeder/substation.
- Provider: Western Power (via VendorPanel).
- Value: Estimated $15K – $80K/MW/year based on localized severity.
How to Apply (VendorPanel Process)
Grid support contracts aren't an open, always-on tariff; they are actively tendered. Contracts often span multiple years.
Network Opportunity Map (iNOM)
Western Power publishes an annual, interactive map highlighting constrained areas of the grid. This tells providers exactly where alternative solutions (like diesel generation) are needed.
Revenue Estimation Model
To help guide site selection in the Land Search tool, we use the following model to approximate potential NCESS revenue based on proximity to constrained infrastructure.
| Constraint Severity | High-Util Feeders | Base Value ($/MW/yr) | Estimated Revenue (5MW Plant) |
|---|---|---|---|
| 🔴 Red (At Limit) | ≥ 3 Feeders | $60,000 | ~$300,000 / year |
| 🟠 Orange (Constrained) | 1-2 Feeders | $25,000 | ~$125,000 / year |
| 🟢 Green (Capacity Avail) | 0 Feeders | $0 | $0 / year |
Distance Decay: Full revenue value applies within a 2km radius of a constrained substation, dropping to 50% value at 5km, and dropping to 0% beyond a 10km radius.