Rule Change: Completed
The AEMC has published its final rule determination on the governance of distributed energy resources (DER) technical standards. It sets out the AEMC’s forward work plan on DER technical standards.
The final rule determination responds to a rule change request from Dr Kerry Schott AO in her former capacity as Chair of the ESB. The request proposed creating a standing committee under the National Electricity Rules (NER) to assess and, if needed make, DER technical standards
for the NEM.
However, the Commission considered it can commence its next stage of work on DER technical standards using its existing powers. It has therefore decided to not make a rule.
Final rule determination
On 17 March 2022, the AEMC published its final rule determination.
To address the increasing importance of DER technical standards for the NEM, the Commission set out a plan to commence its next phase of work to support the full realisation of DER’s potential benefits for consumers.
This forward work plan reflects the five distinct roles that the Commission considered are essential for development of DER technical standards. These are:
- Role one: identify when new DER technical standards are needed. The AEMC will begin consulting with stakeholders upon the completion of this rule change process on its proposed terms of reference for considering the NEM’s priorities from DER technical standards.
- Role two: actively work with the Energy Security Board (ESB) and the Australian Renewable Energy Agency (ARENA)’s Distributed Energy Integration Program (DEIP) to support existing work on DER technical standards.
- Role three: observe Standards Australia’s DER committees by expanding its non-voting participation role in relevant committees.
- Role four: update DER technical standards in the NER. The AEMC will consider any rule change requests to add, update or amend technical standards in the NER, as required.
- Role five: report on progress adopting technical standards in the NER. In conjunction with the work planned under role one, the AEMC will also assess the NEM’s progress adopting standards already introduced in the NER (such as minimum inverter standards).
The final rule determination included draft terms of reference to initiate a review to act on roles one and five.
The Commission’s final rule determination, consistent with its draft rule determination, is that using existing powers enables it to promptly commence its next stage of work on DER technical standards in a way that complements work already underway across other organisations.
For more information, please see the final rule determination.