The Australian Energy Market Commission has published a final 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 Acting Chief Executive Suzanne Falvi said the final 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 final rule requires transmission businesses to share this information with the 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. This information may help project developers assess how marginal loss factors could change.
The Commission’s final 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.
The Commission has set out an implementation timeframe that would enable the key changes to be implemented in stages by end January 2020.
This work is part of the AEMC’s system security and reliability action plan.
Media: Prudence Anderson, Communication Director, 0404 821 935
BACKGROUND
The AEMC received three rule change requests to address common issues around information provision for new projects. These were consolidated into one rule change process:
- The Australian Energy Council’s request proposed 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 sought to allow developers to register as intending participants so they could access additional information to assist them in building a generation system.
- Energy Networks Australia’s request proposed that transmission network service providers be allowed to publish key information they have received from connection applicants about new and proposed generation connections.