The AEMC has published a draft rule determination on the governance of distributed energy resources (DER) technical standards that sets out actions to support the realisation of the benefits from DER. 

Consumers are installing new DER capacity at an unprecedented rate. As DER capacity increases, the technical standards for how these devices perform will be increasingly important for the security and reliability of distribution networks and, ultimately, the NEM.

We are working proactively with other market bodies, industry representatives and Standards Australia to determine priorities for near-term action. 

The draft determination sets out five distinct roles for the AEMC to perform, as needed, to realise the benefits from DER technical standards and integration: 

  1. identify when the NEM needs new DER technical standards
  2. work with the Energy Security Board (ESB) and the Australian Renewable Energy Agency (ARENA)’s Distributed Energy Integration Program (DEIP)
  3. observe Standards Australia’s DER committees
  4. update DER technical standards in the NER
  5. report on progress adopting standards and integrating DER.

We will undertake these roles if existing initiatives, such as the ESB’s DER Implementation Plan and ARENA DEIP workstreams, are not already addressing the NEM’s needs for new and updated DER technical standards. We will use our existing powers under the energy laws, which provide us with significant flexibility. 

The approach described in the draft determination meets the national electricity objective more efficiently than the rule change request’s proposed governance arrangements. The draft rule determination is therefore to not make a rule. 

This draft rule determination has been made in response to a request submitted by Dr Kerry Schott AO, the former Chair of the ESB.

Submissions on the draft determination are due by COB Thursday 3 February 2022.

See the project page for further information and contact details.