SwitchDin submission to review of Reserve Capacity Mechanism

Western Australia’s Reserve Capacity Mechanism (RCM) was never designed for the zero-emission electricity grid of the future, so the WA Government’s review is a welcome move.

The current RCM design does not permit aggregated sources such as virtual power plants (VPPs) to enter the market, and will not be fit for purpose in a future with increasing levels of aggregated energy storage. 

VPPs have demonstrated their capability in a range of successful trials. They can flatten the demand profile and delay the need for investment in additional grid capacity. 

VPPs should be considered viable new sources of dispatchable capacity and the review should ensure that payments under the RCM are available to appropriately accredited VPPs.

Read our full submission and recommendations here: