
Wholesale Electricity Market (AU)

Market Overview:
Western Australia operates the Wholesale Electricity Market (WEM), serving the South West Interconnected System (SWIS), which includes Perth and surrounding regions. The WEM is isolated from the national grid and operates through a hybrid model of bilateral contracts and centrally coordinated dispatch, both managed by AEMO. Generators submit offers, while retailers and large customers provide demand forecasts. AEMO then schedules generation to meet real-time demand. Like the NEM, the SWIS infrastructure is owned by a combination of public and private entities.
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How Proa can help:
Proa helps participants in the WEM navigate evolving regulatory frameworks and market mechanisms with specialised forecasting services that ensure compliance and cost-efficiency.
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Forecasting: In response to the WEM Cost Allocation Review (CAR), the “WEM Deviation Method” will come into effect from 1 October 2025, altering how Regulation and Contingency Reserve costs are assigned—more closely linking them to participant performance. Proa supports generators by submitting accurate, compliant forecasts on their behalf under this new framework, helping to minimise deviation-related costs and improve alignment with system requirements.

Source: AEMO | WEM data dashboard