The Australian Energy Market Commission is extending the time for seeking views on how to change the National Electricity Rules so large-scale batteries and other storage can take their place more efficiently in the power system. 

The AEMC has decided that it will publish an options paper  seeking stakeholder feedback on a framework for proponents of energy storage to join and participate in the National Electricity Market (NEM).

The Australian Energy Market Operator (AEMO) had sought a rule change to support the participation of storage systems, such as batteries, in the NEM. 

After releasing a consultation paper and receiving submissions, the AEMC has decided the options paper will also   test alternative solutions to those proposed in the rule change request that may better align potential changes to the rules with the priority reforms of the Energy Security Board.

The Energy Security Board is developing advice on making the NEM fit-for-purpose and is doing so in collaboration with the market bodies. The options paper will be released as part of a package of Energy Security Board papers in mid-December for the post-2025 project.

Submissions to the AEMC generally sought improvements to the framework for storage participation but also argued for a considered and incremental approach to the changes to ensure alignment with larger reforms being progressed by the ESB.

The AEMC will engage further on alternative solutions that better align with the technology-neutral and service-based approach being pursued through the ESB’s two-sided market reforms initiative. This will also allow us to test how to best achieve a level playing field among market participants for the recovery of non-energy costs.   

The energy storage integration work intersects with work already underway by the ESB. The ESB is looking at, among other things, small and large-scale storage as an important part of a two-sided energy market. In a truly two-sided market, energy consumers large and small both buy and supply electricity.

Submissions to the AEMC options paper close on 11 February.

The time for a draft determination has also been extended.

Media: Kellie Bisset, Media and Content Manager M: 0438 490 041