The Australian Energy Market Commission has published a draft rule to give developers better and more up-to-date information about what new generation projects are in the pipeline. This may help businesses make better investment decisions on where to locate new generators and assess project viability.
AEMC Executive General Manager Security and Reliability Suzanne Falvi said the draft rule is a good outcome for both developers of new generation and electricity consumers.
“More than 50 gigawatts of new wind and solar projects are in development, which is roughly equivalent to the national electricity market’s entire current capacity,” said Ms Falvi.
“The smooth entry of these new generators relies on developers having up-to-date information about where and when other developers are proposing to locate generators to help avoid traffic jams in generation.
“More efficient decisions on where to invest in new generation ultimately benefits consumers by promoting reliable supply at lower costs,” Ms Falvi said.
Currently, as part of the grid connection process, developers provide transmission network businesses with key project information such as the type of generator proposed, the technology it uses, the maximum power it can generate, and the project’s timing.
The draft rule requires transmission businesses to share this information with the market operator, the Australian Energy Market Operator (AEMO). This will enable AEMO to publish more detailed, up-to-date data on proposed and existing generators on its generation information page on its website.
The Commission’s draft rule also extends access to key technical information to certain types of developers who are not “registered participants”. This reflects the emergence of new business models where some developers are selling generators before connecting to the grid.
AEMO, which is receiving an unprecedented volume of generation enquiries, welcomed the draft rule.
AEMO Chief System Design and Engineering Officer, Dr Alex Wonhas, said: “Australia is experiencing unprecedented transformation across the energy sector, including a large growth of new generators connecting to the grid.
“This draft rule change will further help developers access the information they need to enable prudent investment decisions to participate in our energy future,” he said.
The Commission has set out an implementation timeframe that would enable the changes to be implemented in stages by end February 2020.
Submissions to the draft determination are due by 12 September 2019.
This work is part of the AEMC’s system security and reliability action plan.
Media: Bronwyn Rosser, Communications Specialist, 0423 280 341 or bronwyn.rosser@aemc.gov.au
BACKGROUND
The AEMC received three rule change requests seeking to address common issues around information provision for new projects. These were consolidated into one rule change process:
- The Australian Energy Council’s request proposes a number of changes including improvements to AEMO’s generator information page and requirements on new project proponents to provide AEMO with up to date information.
- AEMO’s proposal seeks to allow developers to register as intending participants so they can access additional information to assist them in building a generation system.
- Energy Networks Australia’s request would allow transmission network service providers to publish key information they have received from connection applicants about new and proposed generation connections.