Rule Changes: Open

Local Generation Network Credits

Reference:
ERC0191
Stage:
Publication of Draft Determination
Proponents:
City of Sydney, Property Council of Australia, Total Environment Centre
Project Leader:
Shari Boyd
Date initiated:
10-Dec-2015
Overview

On 22 September 2016 the AEMC published a draft rule determination, and draft more preferable rule, which would require distribution network service providers (DNSPs) to publish information about expected system limitations. The Commission proposes not to implement ‘local generation network credits’ into the National Electricity Rules.

On 22 September 2016 the AEMC published a draft rule determination, and draft more preferable rule, which would require distribution network service providers (DNSPs) to publish information about expected system limitations. The Commission proposes not to implement ‘local generation network credits’ into the National Electricity Rules.

The draft rule would require DNSPs to annually complete a ‘system limitation report’ providing the following information:

  • The name or identifier and location of network assets where a system limitation or projected system limitation has been identified;
  • The estimated timing of the system limitation or projected system limitation;
  • The proposed solution to remedy the system limitation;
  • The estimated capital or operating costs of the proposed solution; and
  • The amount by which peak demand at the location of the system limitation or projected system limitation would need to be reduced in order to defer the proposed solution, and the dollar value to the DNSP of each year of deferral.

The ‘system limitation report’ will offer consistent and accessible information that will enable embedded generators and other providers of non-network solutions to better use existing mechanisms in the rules.

Consultation on the draft rule determination closes on 3 November 2016.

Background

 

On 15 July 2015 the AEMC received a rule change request to amend the National Electricity Rules from the City of Sydney, Total Environment Centre, and the Property Council of Australia.

The rule change request is for distribution network service providers to calculate the long-term economic benefits that embedded generators provide to distribution and transmission networks, and pay embedded generators a local generation network credit that reflects those estimated long-term benefits.

The AEMC published a consultation paper on 10 December 2015 to facilitate public discussion on the issues raised by the rule change request. The AEMC is considering the submissions it received on the consultation paper and developing its thinking about the issues raised in the rule change request.

On 23 June 2016 the Australian Energy Market Commission (AEMC) gave notice that it is extending the period of time for making a draft determination and, if needed, a draft rule, under section 107 of the National Electricity Law, until 22 September 2016.

This extension of time is required as a result of the sufficiently complex issues raised by the rule change request. The AEMC previously extended the time for making a draft rule determination relating to this rule change request to 14 July 2016.

Stakeholder Engagement

 

The AEMC has held a webcast, stakeholder workshops and discussion groups to help inform our assessment of the proposal. Presentations and summaries can be found below. 

 

Watch the webcast.

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Documentation

AEMC documents

Supplementary submission

AEMC Documents

Proposal Documents

Submissions

Late Submissions

Workshop 1 – Identifying the key issues and establishing criteria to assess the proposed solution – 25 February 2016

Discussion group 1 – Participants’ experience setting up embedded generation – 29 February 2016

Workshop 2 - Considering the proposed solution and potential alternatives – 15 March 2016

Workshop 2 – The rule change request – presentation by the rule change proponents – 15 March 2016

Workshop 2 – ISF Preliminary Research Results: Local Network Charges & Virtual Net Metering – 15 March 2016

AEMC documents