Key takeaway: The NEM fundamentals model solves a transmission network with over 200 nodes. The network determines where congestion forms, how prices differ between locations, and the losses each asset incurs delivering energy to its Regional Reference Node.
Everything locational in the forecast starts here. The network representation determines three things: the physical transfer limits between locations, the distinct price at every node, and the Marginal Loss Factors that scale each asset’s revenue.
Transmission Network
How the network of over 200 nodes is built, how secure transfer limits cap flows across 19 corridors, and how the network grows with AEMO's transmission development pathway
Nodal Pricing
How congestion produces a distinct price at every node, settled at the Regional Reference Node
Marginal Loss Factors
How forecast MLFs are produced from the nodal network, by technology and for BESS import and export