MURDOCH RESEARCH REPOSITORY http://researchrepository.murdoch.edu.au/ This is the author’s final version of the work, as accepted for publication following peer review but without the publisher’s layout or pagination. McHenry, M.P., Schultz, M. and O'Mara, K. (2011) Wholesale electricity markets and electricity networks: balancing supply reliability, technical governance, and market trading in the context of Western Australian energy disaggregation and marketisation. In: Acosta, M.J., (ed.) Advances in Energy Research, Vol 5. Nova Science Publishers, Hauppauge, New York, pp. 311-329. http://researchrepository.murdoch.edu.au/3737/ Copyright © Nova Science Publishers It is posted here for your personal use. No further distribution is permitted. 1 Wholesale electricity markets and electricity networks: balancing supply reliability, technical governance, and market trading in the context of Western Australian energy disaggregation and marketisation. McHenry, M. P., Schultz, M., and O’Mara, K. Corresponding Author: Mark P McHenry School of Engineering and Energy Murdoch University 90 South Street, Murdoch, Western Australia, 6150 +61 430 485 306 E-mail address:
[email protected] ABSTRACT Disaggregation and marketisation of government owned electricity utilities can deliver private sector confidence, investment, increased competition and reduce the reliance on distortionary taxpayer-funded subsidies. However, the transition from command and control to designed competitive electricity markets may be at odds with the physical realities of specific network infrastructure, network operator technical requirements, and a dominance of large generators or retailers. This work explores these transitional nuances in the context of the disaggregation of Western Australia’s (WA’s) electricity sector towards a Wholesale Electricity Market (WEM), including bilateral contracts, the WEMs Short Term Electricity Market (STEM), and the Balancing Market (BM) operating within the largest WA network, the South West Interconnected System (SWIS).