Final determination made on Small Generation Aggregator Framework

29 November 2012

On 29 November 2012, the AEMC published the Small Generation Aggregator Framework final determination and final rule. The rule as made seeks to lessen potential barriers to fully participating in the market faced by small generators.

The rule was proposed by the Australian Energy Market Operator (AEMO).  AEMO considered that, for generators that would otherwise be exempt from registration requirements, the process of becoming a Market Generator to sell output at the spot price represented an inefficient cost. To address this AEMO proposed that small generating units be able to aggregate and sell their generation through a third party.

The rule as made is the proposed rule with consequential alterations. A new category of Market Participant has been added to the National Electricity Rules (NER). This Market Small Generation Aggregator (MSGA) will be able to receive the spot price on behalf of a portfolio of generators that are exempt from the requirement to register with AEMO due to their small size. This addition of this category of participant will provide more options to the owners of small generating units, potentially leading to a more efficient wholesale market.