In this blog, we explore the effects of changing to gross demand under I-SEM on small-scale generators.
Projects below 10MW, termed “de minimis” in the Single Electricity Market (SEM), are not required to actively trade. Instead, they enter into a power purchase agreement (PPA) with a supplier to be absorbed into their trading profile.
Suppliers are incentivised to contract with de minimis generators through being charged on a net basis, where sub 10MW plant is treated as negative demand. Therefore, if supplier units have more de minimis generation registered to them than demand then payment is due rather a charge.