The Australian Energy Market Commission (AEMC) has published a draft rule to open up the Victorian Declared Wholesale Gas Market (DWGM) to include distribution connected facilities that can supply natural gas, low-level hydrogen blended gas, biomethane and other renewable gases.
Currently, the Victorian DWGM only recognises transmission-connected facilities and does not allow market participation from entities connected to distribution pipelines.
This work addresses that by amending the National Gas rules (NGR) to also recognise facilities connected at the distribution level.
The changes will affect:
- Market operations, including registrations, scheduling and bidding
- Market settlements, including title, custody and risk, and allocations
- System operations, including connections, metering, and gas quality.
The rule change will ensure the current design of the Victorian gas market is maintained whilst clarifying the roles and responsibilities of all market participants.
AEMC Chair Anna Collyer said importantly, it will encourage technological innovation in an evolving market and regulatory environment as it seeks to promote safety, reliability and security of supply.
“These reforms will enable the proposed pilot projects to participate in the Victorian gas market, providing the foundation for innovation that will allow this industry to develop further,” Ms Collyer said.
“These draft rules along with the changes proposed through the national hydrogen strategy, complement the various decarbonisation initiatives from the Victorian Government and work to enable the development of the national hydrogen industry.”
This rule change was requested by the Victorian Minister for Energy, Environment and Climate Change, The Hon. Lily D’Ambrosio and works towards facilitating the Victorian Government work program, such as the Renewable Hydrogen Industry Development Plan, Gas Substitution Roadmap, Towards 2050: Gas Infrastructure in a Zero Emissions Economy initiative and Climate Change Strategy to reach net-zero emissions by 2050.
The AEMC is concurrently conducting a Review into extending the regulatory framework to hydrogen and renewable gases, also published today.
Submissions to the draft determination and draft rule are due by 19 May 2022.
Visit the project page for more information and contact details.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au