Market Reviews: Open

Coordination of generation and transmission investment

Reference:
EPR0052
Reviewed by:
AEMC
Initiated by:
COAG Energy Council
Date initiated:
18-Jul-2016
Project Leader:
Therese Grace
Overview

On 22 August 2017 the AEMC published an approach paper to commence stage 2 of the Reporting on drivers of change that impact transmission frameworks.

On 22 August 2017 the AEMC published an approach paper to commence stage 2 of the Reporting on drivers of change that impact transmission frameworks.

The approach paper aims to provide greater detail on the main issues that have been identified with respect to the coordination of transmission and generation investment and to provide an overview of some of the options to ameliorate these issues. The options identified in this paper are not an exhaustive list of potential changes that could be made to the regulatory framework and we welcome stakeholder feedback on the analysis and options presented in this approach paper.

In order to more accurately reflect the subject matter under consideration in this review the title has been changed  from Reporting on drivers of change that impact transmission frameworks to Coordination of generation and transmission investment.

Next steps
An options paper will be published in February 2018, which will narrow down the various options under consideration and provide more detail in each chosen option.

Background
In February 2016 the Energy Council provided the AEMC with terms of reference for a biennial regime to report on a series of drivers that could impact on future transmission and generation investment.

In July 2016, the Commission published a Statement of Approach for stakeholder information, which set out our proposed methodology and approach to consultation that we will adopt in conducting this biennial reporting.

This 2017 review is the first time this reporting regime has been undertaken by the AEMC.  On 18 July 2017 the AEMC published a final stage 1 report on the drivers of change that impact transmission frameworks.  The report recommended that the review progress to stage 2 where a number of options to improve the coordination of transmission and generation are to be considered.

This recommendation was on the basis that:

  • the drivers of transmission and generation investment have changed significantly since October 2015
  • there is likely to be large amounts of transmission and generation investment
  • this expected future investment is uncertain in its technology and location.

 

View more View less

Documentation