Market Reviews: Open

Distribution Market Model

Reference:
SEA0004
Reviewed by:
AEMC
Initiated by:
AEMC
Date initiated:
01-Dec-2016
Project Leader:
Claire Richards
Overview

On 6 June 2017 the AEMC published a draft report on its Distribution Market Model project. The report sets out the key characteristics of a potential evolution to a future that enables investment in and operation of distributed energy resources to be optimised to the greatest extent possible, and identifies the barriers to this occurring.

On 6 June 2017 the AEMC published a draft report on its Distribution Market Model project. The report sets out the key characteristics of a potential evolution to a future that enables investment in and operation of distributed energy resources to be optimised to the greatest extent possible, and identifies the barriers to this occurring.

The draft report outlines the need for a way to buy and sell energy and related services at the distribution level in a more dynamic way, in response to price signals. It presents an independent view of what future distribution network operation might look like, guided most strongly by the principles of competitive neutrality and consumer choice.

An audiocast presentation of the draft report is available here.

Written submissions on the draft report are due by 4 July 2017. The AEMC also welcomes meetings with individual stakeholders – please contact Claire Richards, (02) 8296 7878, to arrange a meeting.

Project history and timeline

Milestone Date
Draft report published 6 June 2017
Consultation on draft report, including workshops and/or bilateral meetings June - July 2017
Submissions on draft report close 4 July 2017 (4 weeks)
Final report published 15 August 2017

The AEMC published an approach paper in December 2016, which sets out the scope and context for the project, the AEMC’s analysis of the technical opportunities and challenges presented by distributed energy resources, and a framework for how the opportunities and challenges of an increased uptake of distributed energy resources will be assessed through this project. Stakeholder submissions on the approach paper are available below.

The AEMC will publish a final report in August 2017. The final report will draw on stakeholder input and, where relevant, set out recommendations on possible ways to address any identified barriers to the development of a market-based approach to the optimisation of distributed energy resources.

A timeline for the project is set out below.

Background

The purpose of the Distribution Market Model project is to explore how the operation and regulation of electricity distribution networks may need to change in the future to accommodate an increased uptake of distributed energy resources such as rooftop solar systems, battery storage and electric vehicles. 

These distributed energy resources present both opportunities and challenges, as distribution networks shift from facilitating one-way flows to more dynamic, two-way flows of electricity.  

This project forms part of the AEMC’s technology work program, which explores the flexibility and resilience of energy market arrangements in responding to technological change. The AEMC needs to have a strong understanding of new market dynamics to inform its consideration of rule change requests and market development advice to governments.

 

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Documentation

AEMC Documents

Submissions

Late Submissions

AEMC Documents

Submissions on Approach paper

Late Submissions