The Australian Energy Market Commission (AEMC) has made a final rule to improve the planning and visibility of the rapidly changing local electricity grid, as rooftop solar, home batteries and EVs reshape the way power is generated, stored and used. 

Australia’s energy transition is increasingly being led by consumers, with millions of households and businesses investing in consumer energy resources (CER). In the last year alone, nearly half a million home batteries have been installed.  

But despite the growing impact of these technologies, what they are doing remains largely invisible on the grid, especially on the low voltage network that connects homes and businesses.

The new rule creates a pathway to a clearer picture of how CER is reshaping local networks, through a new reporting framework for more consistent and transparent distribution network data.  

Distribution Network Service Providers (DNSPs) will also need to prepare and publish a new Distribution Network Development Plan (DNDP) with a 20-year horizon, giving a clearer long-term view of how local networks are expected to change with the uptake of CER.

AEMC Chair Anna Collyer said the new rule sits at the centre of the Commission’s CER reform program and has far-reaching implications.

“Some of the biggest changes in the energy system are now happening in the parts of the grid we have historically been least able to see,” Ms Collyer said.

“So this rule is about making the invisible visible, as well as providing better long term insights into what CER means for network development.”

How consumers stand to benefit

All households and businesses can share in the benefits of better informed and targeted investments to the grid, with network costs accounting for up to half of a typical power bill.

Better local data can help unlock more value from household batteries, and identify where community batteries or EV chargers would deliver the greatest  benefit.  

It also allows energy service providers to offer more tailored products and services that better meet the needs of their customers.  

A key piece of the CER reform puzzle

This final rule is part of a broader AEMC reform program to modernise the energy system around consumers and their consumer energy resources.

“Our rule change to accelerate the deployment of smart meters establishes the digital foundation to integrate rooftop solar, batteries and EVs into the wider system,” said Ms Collyer.

“But their real value can only be enabled when that data is understood and coordinated across the energy system.”

Enhanced planning and reporting also complements the work being done through the AEMC’s reviews into electricity pricing and network regulation, as well as the National CER Roadmap.

In addition, clearer and more consistent CER data, along with longer-term planning horizons, will feed into the Integrated System Plan (ISP) to ensure it remains fit-for-purpose and more precisely captures consumer behaviour.

What happens next

The AEMC’s final determination and more preferable final rule respond to a rule change request from Energy Consumers Australia.

The rule is deliberately designed to evolve with the energy system. Rather than locking in today’s assumptions about what data will be needed, it creates a flexible reporting framework and tasks the Australian Energy Regulator with developing more detailed data guidelines.  

This approach recognises that local network data needs will change as electrification and other regulatory reforms progress.  

Visit the project page for the final determination, final rule and information sheet.  

About the AEMC  

The AEMC is an independent statutory body that advises Australian governments on energy market rules and conducts reviews of the energy sector. The AEMC’s work is guided by the long-term interests of energy consumers – balancing reliability, safety, affordability and emissions reduction in line with Australia’s energy transition.   

Media: Jessica Rich, 0459 918 964 media@aemc.gov.au