A draft determination has been published that examines how to improve the process and speed for connecting generation and storage to the grid.
The Australian Energy Market Commission (AEMC) is seeking feedback on the draft rule it has now made that relates to what is known as the 'R1' process.
During the R1 process, generators and large-scale storage providers are required to submit detailed engineering modelling and information to the Australian Energy Market Operator (AEMO) and network service providers for review.
The submission helps them achieve registration and connection to the national electricity market and grid.
As Australia undergoes a massive transformation to net zero, an unprecedented number of variable renewable energy such as wind, solar and battery projects are entering the market to replace retiring thermal plants.
Underscoring that is AEMO’s Draft 2024 Integrated System Plan. It expects that six gigawatts of new capacity will need to be added every year to achieve Australia’s emissions reduction targets for a sustainable future.
Accordingly, as of December 2023, there were 583 renewable energy projects in the connections queue waiting to receive registration with AEMO.
Chair Anna Collyer says speeding up this process would ensure that consumers enjoy cleaner and cheaper energy throughout the transition.
"At the AEMC, we are dedicated to establishing a robust framework for a stable system that delivers clean, affordable electricity.
"This reform, focused on enhancing regulatory certainty, is driven by our commitment to prioritising consumer interests and enhancing the efficiency of the energy market.
“In recognising the scale of the energy transition that is underway and the amount of generation that is needed to connect, our efforts are aimed at ensuring valuable hours are directed towards addressing critical issues that bolster system security and expedite the connections process," Ms Collyer said.
The draft determination explored a proposal from the Clean Energy Council (CEC) that noted a lack of clear obligations or timeframes in the R1 process, potentially leading to project delays.
Additionally, stakeholders identified that the electricity rules may prevent some pragmatic revisions of performance standards, which can lead to significant engineering work with minimal gain.
The draft rule aims to increase certainty in the R1 process by allowing generators to request justification for additional modelling requests. It also removes a barrier for parties to agree on reasonable revisions to a generator’s performance standards.
With renewable and battery technology expected to play a significant role in the transition, improvements to the R1 process may also help to accelerate the integration of new projects into the system, providing greater certainty to businesses and reducing costs to customers.
The AEMC commends the CEC and AEMO on their collaborative work and recommends AEMO continue improving its guidance on the specifics of how it evaluates compliance during the R1 process.
Written feedback and submissions on the draft determination and draft rule are being accepted until 18 April 2024.
View the project page for more information and contact details.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.