The Australian Energy Market Commission (AEMC) has published a final rule that allows the Australian Energy Regulator (AER) to impose obligations on transmission network service providers (TNSPs) to ring-fence their provision of negotiated transmission services from other services.  

The final rule will address concerns about potential discrimination by TNSP's in favour of themselves or their affiliates when providing connection services to the transmission network.  

The final rule is a crucial step towards ensuring a more timely and efficient connection of new renewable energy, such as solar, wind, and battery storage, which are projects critical for achieving Australia's net zero emissions targets.  

By promoting competition and improving confidence in the market for contestable connection services, the rule seeks to contribute to a more cost-effective connection process.  

AEMC Chair Anna Collyer emphasised the importance of this rule in the context of the ongoing energy transition.

''As we face the challenges of connecting a growing number of renewable energy generators to the grid, it is essential to ensure that the connection process is as efficient and fair as possible,'' she said.

''Our final rule helps connecting parties better manage the risks associated with cost and time pressures when connecting to the transmission network. This, in turn, will lead to savings for consumers and support Australia's decarbonisation efforts."  

The final rule will come into effect on 23 May 2024, and the AER is required to update its Guidelines within nine  months of this date to reflect the changes.  

For more information and contact details, please visit the project page.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au