We examine the risk transmission mechanisms in the interconnected Australian National Electricity Market (NEM). We illustrate that the transmission of extreme events in terms of their magnitude (via skewness) and the likelihood of their occurrence (via kurtosis) should be considered when promoting NEM interconnectedness. Our empirical findings suggest that interconnectedness costs can be limited by providing sufficient transmission capacities as it can expand generation capacity. Our results suggest that a one percent increase in NEM generation capacity can decrease the transmission of these risks by between 0.9 percent and 1.7 percent, depending on the moment of the electricity return distribution.

中文翻译：

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澳大利亚国家电力市场的互联性：更高时刻的分析

我们研究了相互关联的澳大利亚国家电力市场 (NEM) 中的风险传递机制。我们说明，在促进 NEM 互连性时，应考虑极端事件在其幅度（通过偏度）和发生的可能性（通过峰度）方面的传输。我们的实证结果表明，互联成本可以通过提供足够的传输容量来限制，因为它可以扩大发电容量。我们的结果表明，NEM 发电容量增加 1% 可以将这些风险的传输降低 0.9% 到 1.7%，具体取决于电力返回分配的时刻。