Market Reviews: Completed

Distribution Market Model

Reference:
SEA0004
Reviewed by:
AEMC
Date completed:
22-Aug-2017
Overview

On 22 August 2017 the AEMC published the final report on its Distribution Market Model project. The report sets out the key characteristics of a potential future that enables investment in and operation of distributed energy resources to be optimised to the greatest extent possible, as well as a number of findings representing short-term actions that need to be undertaken in order to facilitate distribution-level markets.

On 22 August 2017 the AEMC published the final report on its Distribution Market Model project. The report sets out the key characteristics of a potential future that enables investment in and operation of distributed energy resources to be optimised to the greatest extent possible, as well as a number of findings representing short-term actions that need to be undertaken in order to facilitate distribution-level markets.
 
The final report outlines the need for a way to buy and sell energy and related services at the distribution level in a more dynamic way, in response to price signals. It presents an independent view of what future distribution network operation might look like, guided most strongly by the principles of competitive neutrality and consumer choice. 
 
Project history and timeline

The AEMC published an approach paper in December 2016, which set out the scope and context for the project, the AEMC’s analysis of the technical opportunities and challenges presented by distributed energy resources, and a framework for how the opportunities and challenges of an increased uptake of distributed energy resources would be assessed through this project. Stakeholder submissions on the approach paper are available below. 

A draft report was published in June 2017, setting out the Commission’s draft findings. An audiocast presentation of the draft report is available here.  Stakeholder submissions on the draft report are available below. 

Background

The purpose of the Distribution Market Model project is to explore how the operation and regulation of electricity distribution networks may need to change in the future to accommodate an increased uptake of distributed energy resources such as rooftop solar systems, battery storage and electric vehicles. 
 
These distributed energy resources present both opportunities and challenges, as distribution networks shift from facilitating one-way flows to more dynamic, two-way flows of electricity.  
 
This project forms part of the AEMC’s technology work program, which explores the flexibility and resilience of energy market arrangements in responding to technological change. The AEMC needs to have a strong understanding of new market dynamics to inform its consideration of rule change requests and market development advice to governments. 

 

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Documentation

AEMC Documents

AEMC Documents

Submissions

Late Submissions

AEMC Documents

Submissions on Approach paper

Late Submissions