What you need to know
- The AEMC is seeking feedback on its draft determination of long awaited rules to provide a path for integrating new energy technologies (including small-scale solar and batteries) into the electricity grid.
- Energy Senior Officials are seeking feedback on a package of rules following recent amendments to the national energy laws to support stand-alone power systems (SAPS).
- Submissions on the proposed SAPS changes will be considered ahead of a final rule change package going to Energy Ministers for approval in mid-2021.
What you need to do
- Interested parties can submit feedback on the draft determination to the AEMC by 13 May 2021, either online or by post.
- In respect of the proposed SAPS changes, feedback can be submitted to demsaenwg@sa.gov.au by 6 April 2021.
AEMC draft determination
On 25 March, the AEMC released a long-awaited draft determination and draft rules which attempts to create a pathway to integration of more small-scale solar, and other new energy technologies (such as batteries), into the electricity grid.
The draft determination notes that the proposed rules are designed to:
- clarify that distribution services are two-way and include export services, so that energy export is explicitly recognised as a service to consumers;
- promote incentives to efficiently invest in, operate and use export services, to encourage more efficient export of energy back into the grid;
- enable distribution networks to offer two-way pricing to better manage their networks, which may include rewarding solar and battery owners for sending power to the grid when it's needed and charging for sending power when it’s congested; and
- allow flexible pricing solutions at the network level, to suit the network's capability, customer preferences and government policies.
This draft determination is the AEMC's response to rule change requests from SA Power Networks, the St Vincent de Paul Society, the Total Environment Centre and the Australian Council of Social Services. These requests arose from a nine-month consultation as part of ARENA’s Distributed Energy Integration Program.
Stand-alone power systems
The South Australian Parliament has passed the Statutes Amendment (National Energy Laws) (Stand-Alone Power Systems) Act 2021, which allows the South Australian Minister to make rule changes to the NER and NERR to support the efficient provision of SAPS. This was in response to Energy Ministers considering the findings of the AEMC's Stand-Alone Power Systems Priority 1 final report, and agreeing to amend the national energy laws and rules to support the efficient delivery of SAPS by distribution network service providers.
SAPS include microgrids and individual power systems and have become more viable as technology improves and costs drop. Typically used by remote customers to provide an alternative to using the national grid, SAPS are usually a combination of solar, batteries and a back-up generator.
Changes to the SAPS rules are also required to accommodate changes to the NER made by the introduction of a mechanism for wholesale demand response.
These reforms were recommended by the AEMC in its 2019 and 2020 reports, which recommended rule changes to enable distributor-led SAPS when it is less expensive than maintaining a grid connection.
Feedback due
The AEMC has opened its submissions on the draft determination, which are due by 13 May 2021. Stakeholders who wish to submit feedback on the draft determination can lodge submissions online or by posting a hard copy to the AEMC, GPO Box 2603, Sydney NSW 2001.
Submissions on the proposed SAPS changes can be sent to demsaenwg@sa.gov.au. The consultation period will close on 6 April 2021, ahead of the final rule change package going to Energy Ministers for approval in mid-2021.
Authors: Paul Newman, Partner; Andre Dauwalder, Senior Associate.
