Market Review: Open
Energy Ministers have approved an update to the National Electricity Objective (NEO) which embeds emissions reduction as part of the long-term interests of electricity consumers.
The Reliability Panel (Panel) has developed a draft guide on applying the updated NEO to its work, for consultation with stakeholders.
The context for the Reliability Panel’s consultation
The Panel forms part of the AEMC’s institutional arrangements and has its functions and powers conferred on it within the National Electricity Law and National Electricity Rules (NER).
The Panel applies the NEO in its work in accordance with the NER and as specified in terms of reference from the AEMC. This includes the Panel’s work on the reliability standard and settings, the frequency operating standards, and the system restart standard, among other projects.
Where the Panel has decided or is otherwise required to consider the NEO in making a recommendation or determination, the Panel will consider impacts on emissions reduction targets as outlined in this guide, and with reference to the guidance developed by the AEMC.
The Panel, however, will retain the flexibility to determine how to apply the AEMC’s guidance on emissions to specific Panel reviews and determinations.
The Panel sought stakeholder feedback on whether its guide clearly explains how the Panel will consider the emissions reduction component in its work, and whether further guidance would be helpful.
Related work: AEMC guide
The AEMC consulted on its guide on how it will apply the emissions component of the national energy objectives to its work on rule changes and reviews. The AEMC’s consultation paper and stakeholder submissions can be found on the AEMC’s project webpage.
Written submissions were due by 18 August 2023.
For further information, please see the Commonwealth Department’s webpage Incorporating an emissions reduction objective into the national energy objectives.
The specific changes to the national energy objectives are set out in the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Bill 2023.