Regulators are only now grasping the full extent of the challenges and opportunities brought by the proliferation of DER, including the need for remote, dynamic device communication. Flowing on from this is the need for interoperability standards and a good governance model.

On 17 March 2022, the AEMC made its final determination on the Governance of Distributed Energy Resources Technical Standards. The Commission has decided not to make a rule, and instead rely on its existing powers and workplan to progress DER technical standards for the NEM.

The AER has released draft Export Tariff Guidelines for consultation, which provide guidance about how distributors should define the basic export level for distributed energy resources (such as solar PV), and how they should develop and justify proposals for export pricing.

The Connections Reform Roadmap was published in December 2021, as part of the Connections Reform Initiative jointly sponsored by AEMO and the CEC. The Roadmap outlines priority reforms, identified in collaboration with industry, needed to overcome the challenges in connecting generators to the grid.

The Australian Energy Regulator released its 2022 Rate of Return Instrument Information Paper on 17 December 2021, which is the next step toward the final 2022 Instrument (due for publication in December 2022). It sets out six priority issues for further analysis and stakeholder feedback.

AEMO recently released the Draft 2022 Integrated System Plan (ISP), a whole of system plan which provides AEMO’s least cost development pathway for the National Electricity Market. AEMO has identified its ‘Step Change’ scenario as the most likely scenario.

The AEMC published a draft rule determination on 16 December 2021 on the governance of DER technical standards. The draft determination is to not make a rule; the AEMC preferring to use existing powers and roles under energy laws to realise DER technical standards and integration.

The AER is developing new guidance for DNSPs following the AEMC’s final determination on access, pricing and incentive arrangements for DER. The guidelines are intended to guide efficient levels of DER export investment and appropriate two-way price signals

The AER is consulting on its proposed regulatory sandbox toolkit following the Australian Energy Market Commission’s (AEMC) regulatory sandbox recommendations to the COAG Energy Council on 26 September 2019, and further advice on rule changes on 26 March 2020.

What is the Ring-Fencing Guideline change and how does it affect you?