Customers would benefit from a more secure, reliable and affordable energy system with the development of a national regulatory framework to ensure consumer energy resources (CER) such as solar PV, batteries, pool pumps and hot water heaters comply with mandatory technical standards.
The Australian Energy Market Commission’s recommendation for regulatory reform is one of 11 proposals set out in a final determination published today. The self-initiated review investigated device compliance with technical standards for the national electricity market.
CER plays a critical role in the energy transition. As the rapid uptake of these resources continues, the technical standards defining how devices interact with each other and the power system are increasingly important.
For example, the grid will be more stable with standards that help to reduce instances of devices ‘tripping’, leading to enhanced efficiencies, cost savings and greater certainty for both market participants and consumers.
Despite the importance of technical standards to integrate CER in the power system, significant non-compliance persists. This raises a pressing concern for the operation of the power system which, if not addressed, will be exacerbated as more CER connects.
The AEMC recommends 10 immediate actions by industry, jurisdictions and the market bodies to improve compliance. These actions will support improved compliance over the CER device life cycle by:
- simplifying the settings for devices manufactured and sold in Australia
- promoting compliant installation
- supporting the ongoing compliance of devices connected to the power system.
The AEMC urges stakeholders to implement these immediate recommendations under the existing regulatory framework.
In addition, the AEMC recommends energy ministers lead the development of a national technical governance and compliance framework that will enable the national energy market to integrate high and growing levels of CER.
This may be progressed as part of the National Energy Transformation Partnership and would help ensure a more enduring national framework for CER technical standards.
For more information and contact details visit the project page here.
Media: Jessica Rich | 0459 918 964 | media@aemc.gov.au