Connecting Embedded Generators Rule 2013 – Draft Determination

The AEMC today called for public submissions on proposed rules which would reduce barriers to the connection of small electricity generators to distribution networks.

Electricity consumers are increasingly seeking to connect small to medium generators to distribution networks.  These can include generators located in commercial buildings, shopping centres or wider environmental precincts which plan to generate their own power from sources like gas, solar, wind or biomass.

Developments which have embedded generation capacity may still need to source some power from the grid. At other times, they might choose to sell their excess electricity into the grid.

Our draft rule released for community discussion today would allow the distribution network to continue adapting to change while maintaining the reliability of local power supply networks for all consumers.

Provisions under the draft rule clarify the responsibilities for both connecting businesses and distributors under the connection process.

The process requires distributors to publish an information pack for embedded generators detailing technical standards, range of costs involved, application details and timing.  It seeks to provide embedded generators with the information they need to prepare their business case for developments.

It also recognises the technical and security impacts of proposed connections on local distribution networks.

AEMC Chief Executive, Steven Graham, said today it was important to provide a framework for efficient investment and cost-effective outcomes while at the same time maintaining system security and reliability.

“This draft determination seeks to facilitate efficient network and generation investment and operation so consumers do not pay more than necessary for electricity.

“Network costs have been a significant driver of retail electricity prices in recent years.

“Electricity users who install embedded generation units may be able to reduce their electricity costs.

“We are seeking to expand regulatory certainty and clarity in relation to connecting small to medium generators to distribution networks so that sound commercial decisions can be made by all participants,” Mr Graham said.

The proponents for this rule change are Climateworks Australia, Seed Advisory, and the Property Council of Australia. The Commission’s draft rule is a more preferred rule to balance the reliable and efficient operation of the grid with a clear connection process for embedded generators.

For information contact:

AEMC Director, Meredith Mayes (02) 8296 7800

AEMC Senior Adviser, James Eastcott (02) 8296 7800


Media: Communication Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817


27 June 2013