On 25 March 2021, the Australian Energy Market Commission (AEMC) released a draft rule determination and the associated rules Draft National Electricity Amendment (Access, pricing and incentive arrangements for distributed energy resources) Rule 2021 and Draft National Electricity Retail Amendment (Access, pricing and incentive arrangements for distributed energy resources) Rule 2021.
The draft rules are intended to integrate distributed energy resources, such as small-scale solar and batteries, more efficiently into the electricity grid. In practice, the proposal changes the incentive structure for distribution network service providers to include power exports in their service provision business models. It also allows these network businesses to offer two-way pricing to incentivise customers to export power in ways that benefit the grid and smooth out the peaks and troughs of demand.
This means, in practice, small-scale generators may be exposed to both payments and charges for exporting to the electricity network. Charges reflect the cost of using the network while it is congested and payments reward small-scale generators when there is significant demand for electricity.
The draft determination and associated rules has been assessed by the Office of Best Practice Regulation as compliant with requirements for a Council of Australian Governments Decision RIS.
The AEMC is accepting submissions until 13 May 2021 and anticipates completing the project on 24 June 2021.
Please note: any accessibility queries should be directed to the Australian Energy Market Commission