Skip to main content

Draft National Electricity Amendment (Generator registrations and connections) Rule 2021

Announcement date:

24 June 2021

Announcement:

https://www.aemc.gov.au/rule-changes/generator-registrations-and-connections

Problem being addressed:

The Australian Energy Council’s (AEC) rule change request sought to increase the participation of smaller generators in central dispatch to enable improved management of the power system and the efficient operation of the market, and to increase transparency in the Australian Energy Market Operator’s (AEMO) process for granting exemptions from being registered as a scheduled or non-scheduled generator.

Mr Damien Vermeer’s rule change request suggested the National Electricity Rules are unclear and ambiguous with respect to the connection process for new embedded generators with nameplate capacity between 5 and 30 MW. This, in Mr Vermeer’s view, has led to the passing of significant risk to connection applicants and is preventing efficient investment in generation co-located with large, distribution connected load, in turn preventing some parties from achieving a reduction in their electricity costs and an associated carbon offset.

Proposal:

The AEC's rule change request proposed to:

  • Reduce the threshold for classifying generators as non-scheduled from 30MW nameplate capacity to 5MW, making the default classifications for generators above 5MW scheduled (or semi-scheduled).
  • Narrow the grounds upon which generators can be exempt from scheduling obligations.
  • Require AEMO to publish its reasons for exempting a person from the requirement to register as a generator, or for classifying a generating unit as non-scheduled.

Mr Vermeer’s rule change request proposed a conditional exemption from registration for embedded generators with a nameplate capacity between 5-30MW.

In response to the rule change proposals, stakeholder feedback and its own analysis, the Commission has made a more preferable draft rule. The Commission’s draft determination is to:

  • Retain the current threshold for classifying generators as non-scheduled.
  • Narrow the grounds upon which a generator can be exempt from scheduling obligations.
  • Improve the transparency of AEMO’s exemption and classification processes.
  • Clarify the connection process and application of performance standards.

RIS outcome:

Compliant with RIS requirements