Benchmark Reserve Capacity Price
Overview
The Benchmark Reserve Capacity Price (BRCP) is set for each Capacity Year based on the cost of installing the cheapest low emissions technology in the South West Interconnected System (SWIS). The Economic Regulation Authority (ERA) must determine the value of the BRCP in accordance with the method specified in the Electricity Market and System (ESM) Rules.
The BRCP provides an investment signal for new capacity required to maintain system reliability for electricity consumers in the SWIS and is used in the Reserve Capacity Mechanism to calculate:
- the Reserve Capacity Price (RCP); and
- the Reserve Capacity Security requirements
On 13 March 2026, the ERA set the BRCP for the 2026 Reserve Capacity Cycle at $488,500 per megawatt (MW) per year for both the Peak and Flexible Capacity. The BRCP is based on the following:
- The estimated cost of constructing and connecting a 200 MW/1,200 megawatt hour (MWh) Battery Energy Storage System (BESS) to the SWIS.
- The fixed operation and maintenance costs over a 15-year economic life.
- Location along the Clean Energy Link – North.
The 2026 BRCP is 35% higher than the 2025 BRCP ($360,700 per MW per year) and 112% higher than the 2024 BRCP. The increase reflects changes made by the Coordinator of Energy to the Benchmark Technology used in calculating the BRCP:
- 2025 BRCP determination – Following the 2023 Coordinator of Energy review of the Benchmark Capacity Providers for setting the BRCPs, the Benchmark Technology was updated from a 160 MW Open Cycle Gas Turbine to the 200 MW / 800MWh lithium-ion BESS.
- 2026 BRCP determination – Following the 2025 Coordinator of Energy review of the Benchmark Capacity Providers for setting the BRCPs, the Benchmark Technology remained a BESS; however, the storage duration increased from four hours (800 MWh) BESS to six hours (1,200 MWh). This resulted in higher estimated capital and fixed operating costs.
The ERA website contains more information on the 2025 and 2026 BRCP determinations.
Historical BRCP
A summary of the breakdown of the BRCP cost components and Reserve Capacity Prices from market start to date is provided below.